Guinea’s fourth re­tail bank

There were 35 in­sti­tu­tional in­vestors from Hong Kong, Malaysia, New Zealand and Aus­tralia, he told Busi­ness

Business Advantage Papua New Guinea - - Financial Services -

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.

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