A group of Micro, Small, and Medium Enterprises (MSMEs) in Fiji has successfully come together to lobby against a decision by commercial banks to phase out cheques, fearing it could lead to significant disruptions for their businesses. This initiative emerged from the Fiji Micro Small and Medium Entrepreneurs Community (FMSMEC), a vibrant group utilizing a Viber platform for communication. Members of FMSMEC flagged concerns that eliminating cheques would negatively impact their operations.
This campaign gained visibility when the FMSMEC highlighted its concerns through various channels, emphasizing the necessity for consultation and awareness among MSME owners, especially those in rural regions. Initially brought to attention in an article published in the Fiji Times, the narrative underscored that while digital transformation is welcomed, the approach to phasing out cheques was flawed due to inadequate consultation.
The Reserve Bank of Fiji (RBF) reported that the recommendation to phase out cheques originated from the Association of Banks in Fiji (ABIF) and was submitted without adequate discussion with MSME representatives. Following public announcements and timelines set by banks, the FMSMEC felt compelled to address the lack of engagement from regulatory bodies and banking institutions.
Starting in early March 2024, the FMSMEC organized discussions within its Viber group, which sparked a wave of sentiment regarding the urgency for action. Members shared personal experiences illustrating the gap in communication and preparation for the digital payment transition. This led to the formation of a working group dedicated to lobbying the RBF and ABIF for more inclusive discussions.
The group received support on social media, amplifying their call for action and indicating to banks that MSMEs were united in their concerns. Following this organized pushback, the ABIF announced a delay in the phase-out timeline, moving the cessation of cheque issuance to July 1, 2024, and the end of cheque processing to January 1, 2025.
The lobbying efforts escalated with formal written submissions to the RBF, which prompted a commitment to engage in consultations with all stakeholders about the transition. A meeting between the FMSMEC and RBF representatives reinforced the group’s position, resulting in acknowledgment of the necessity for more structured discussions.
Despite the RBF’s public statements indicating consultations would follow, the FMSMEC continued to push for recognition of the specific challenges faced by MSMEs in adapting to the proposed changes. The group revealed that significant legislative adjustments would be required to facilitate this transition, yet no clarity was provided regarding the government’s timeline for these amendments.
In April 2024, a collaborative awareness session between the FMSMEC and banks illustrated a crucial turning point as the need for dialogue was underscored. The proactive networking and advocacy from the FMSMEC ultimately culminated in significant support from both the banking sector and a major private company, affirming the legitimacy of their concerns.
In a much-anticipated announcement in June 2024, the ABIF retracted the aggressive timelines for phasing out cheques, seeking more consultation to mitigate potential fallout on the business community. This decision was welcomed across the wider MSME community and emphasized the critical importance of engaging with MSMEs on issues affecting their operations.
The situation highlights the essential need for consultative processes in policy changes affecting MSMEs, which contribute significantly to Fiji’s economy. The FMSMEC’s experience serves as a valuable lesson in advocating for fair practices within financial systems and emphasizes building networks that address the challenges of small businesses effectively.