Guinea’s fourth retail bank
There were 35 institutional investors from Hong Kong, Malaysia, New Zealand and Australia, he told Business
Financial inclusion drives growth
The aim of a full commercial banking licence is a testament to the National Development Bank’s performance over the past three years, which includes becoming profitable, and increasing its customer base, deposits and loan portfolio value, according to Managing Director, Moses Liu.
In December 2015, the bank reported that its subsidiary, the People’s Micro Bank (PMB), now had more than 50,000 customers, and deposits worth K50 million.
The National Development Bank will apply for a full commercial banking licence for the PMB by early 2017
Liu says the backbone of the PMB’S success has been a financial literacy program, established by the country’s central bank, the Bank of PNG, in partnership with the Asian Development Bank.
‘The purpose was to provide a savings culture among our people, basically. Those people come from a subsistence, agricultural background with little planning for tomorrow—it was a hand-tomouth society,’ explains Liu.
While the PMB currently has a physical branch office in each province, it is now partnering with telco Digicel to move to branchless banking, using mobile phones.
Some 80% of the country’s population has no access to financial inclusion and services.
Financial institutions across Papua New Guinea opened 464,514 new bank accounts from December 2013 to June 2014. Of these, 31% were for women.
The Bank of PNG is now working toward a goal of one million more clients across all banking partners.
This aim includes a target of 50 per cent of new accounts to be set up by women.