Fiji has launched its first peer-to-peer lending platform in a move aimed at improving access to finance for small and medium-sized enterprises and encouraging greater participation in alternative investment channels.
According to FijiVillage, the platform is designed to connect lenders and borrowers directly, enabling small businesses to raise funds without relying solely on traditional bank loans. This model is increasingly common globally, but remains new in the Pacific where small markets, credit risk concerns, and limited financial innovation have historically constrained access to capital.
Small businesses in Fiji often face difficulties securing bank loans due to collateral requirements, limited credit histories, or the seasonal nature of cash flows in sectors such as agriculture, tourism services, and small-scale manufacturing. Peer-to-peer lending offers a potentially flexible option, particularly if it can support smaller loan sizes and faster decision-making.
Supporters of the initiative argue that peer-to-peer lending could also create new investment opportunities for individuals seeking returns outside term deposits. If well regulated, the model could help mobilise domestic savings and channel it into productive business activity.
However, peer-to-peer lending also carries risks. Investor protection, credit assessment standards, and transparent reporting are critical. Without robust oversight, such platforms can expose lenders to defaults and borrowers to unsuitable lending terms. For Fiji, where financial literacy levels vary, strong safeguards will be essential.
The launch also reflects a broader shift in Fiji’s financial landscape, where digital payments, mobile money and new fintech solutions are expanding rapidly. This trend has been reinforced by increased smartphone penetration and the growing preference for cashless transactions.
If the platform succeeds, it could support entrepreneurship, job creation, and business resilience, especially for enterprises outside Suva and the main urban centres.
Fiji’s economic policy settings have increasingly focused on private sector-led growth and the strengthening of local enterprise. Improved access to finance remains one of the most frequently cited constraints for SMEs, and the new peer-to-peer lending platform will be closely watched by both regulators and the business community.
