Financial services

Kina Bank’s vision is to be the country’s leading digital bank.

In June 2018, Kina Bank announced it would seek regulatory approval to buy ANZ’S retail, commercial and SME banking business in PNG for K24.2 million. The acquisition will give Kina Bank an additional 15 retail branch premises, 72 ATMS and over 1,800 EFTPOS terminals.

Kina will expand its footprint, becoming the second largest bank in PNG. Its lending market share will increase from 5.8 per cent to 8.8 per cent and its market share of deposits will increase to 9.9 per cent. ANZ, meanwhile, will concentrate on its institutional and large corporate banking.

Chief Executive of Kina Bank, Greg Pawson, describes the move as ‘a tremendous opportunity’ that is ‘very much in line with our current target and strategy to reach the emerging mass affluent segment in retail banking, and commercial and SME customers.’

He says the focus will be on the customer experience. ‘That means we’re offering innovation in the product space. Our expanding suite of products and services are designed specifically to meet the changing needs of customers.

‘Quality, convenience and simplicity are the key themes of our banking proposition. We’re building best-inclass digital capabilities that support the growing middle market demographic.

‘Customers want to transact digitally—they have smart phones and they’re very tech-savvy. We’ve got the newest core banking system in the market and are the leaders in digital expertise, which means we can drive the technology agenda. And we’re not encumbered by old legacy systems that are now out of date.’

Mass retail market

Pawson says the strategy is long-term; more products and services will be provided online. Kina Bank has about 85 separate digital-based projects being developed at the moment.

‘Some of it is process re-engineering within the company. We want to be digital on the inside as well as digital on the outside. And we’re doing a huge amount of work to make sure that, if and when, ANZ customers transition to Kina Bank, it is seamless for them.

‘We’ve found a lot of our systems and processes require some form of manual intervention, which is costly. We completed an upgrade of our core banking system, ICBA; that was quite a significant investment. That enables us to streamline a lot of these operations by performing them digitally.’

Home lending

QUALITY, CONVENIENCE AND SIMPLICITY ARE THE KEY THEMES OF OUR BANKING PROPOSITION. Greg Pawson

Pawson sees home lending as a big opportunity.

‘Papua New Guineans are buying their first homes. Some are starting to buy investment properties and so forth. We’re seeing that trend and it’s good.

‘You can buy a house for K300,000 to 500,000 and a lot of Papua New Guineans, a lot of our staff here, are well positioned to take advantage of a home loan.’

Kina has recently lowered a Port Moresby or Lae home loan applicant’s deposit requirement to 10 per cent. ‘A lot of employers now are sponsoring their staff into homes. It’s good for retention and it’s the right thing to do.’

Kina Bank administers the funds for the two biggest provident funds, (Nasfund and Nambawan Super). Pawson estimates close to 150,000 could qualify for the first home loan grant.

As part of Kina Bank’s focus on SMES the bank is participating in the formation of an equity fund to help businesses that are starved of capital. 

Credit: Kina Kina Bank staff.