BSP looks to extend branch network
BSP is looking at a possibility at some stage to extend their branch network.
According to BSP Group chief executive officer Robin Fleming in PNG, this possibly was a bit different because customers in PNG had not quite adapted to digital and mobile banking.
“For us, it’s possibly going to be opportunities at some stage to extend our branch network.
“We really want to encourage people to use digital banking, to start using our products, internet banking, SMS banking, and other types of digital banking to reduce the need to have to come into the bank.
Mr Fleming added if the population growth starts to outstrip digital banking then they would consider more branches.
However, he said, the first opportunity was to really get people into digital banking and look for ways to have their customers bank without having to come to a branch.
He said the past two years had been difficult, however, the bank found that many businesses were able to stabilise and normalise their own business operations as well.
“So they all recognise that there is a debt that needs to be repaid, notwithstanding we provide principal and interest relief that some stages debt does need to be paid, and probably also recognises that many customers at heart really want to be able to repay the bank.
“So when through a process whereby we provide that relief, we had to adjust some of our provisionings in that first year in 2020. By the time we got to the end of 2021, many businesses had been able to stabilise their operations and some of those provisions we took up in 2020 get released last year.”
He said they’ve also taken the approach that banks needed to understand a customer’s personal needs, be that an individual customer or a business customer and they could provide relief in need.
“Equally, we just got to make sure that we take up provisioning in our balance sheet to allow for that.
“Solomon Islands is starting to recover.
“Vanuatu is probably the one that’s had the most stress from a COVID perspective and they haven’t necessarily put a timeline to when they want the borders to be reopening.
Mr Fleming added that Samoa and Tonga had also gone through a bit of stress.
“We expect that by the end of the year, most countries will have allowed the borders to reopen.
“That’s just a great catalyst for business operations to start to return to normal and then for those businesses to look at how they can repay BSP.”