Date: January 21, 2019
Source: Post Courier
Pacific Financial Inclusion Program specialist Jagdeep Dahiya says it is time that a proper banking system is set in place for the informal sector.
Mr Dahiya stated this following the opening of the new Mama Bank Access Point in Port Moresby last Friday.
He said access to financial services remains a challenges for Papua New Guineans in remote and semi urban areas as a result there are more informal players in the market.
“There are loan sharks who charge high interest rates and how do we provide a system which can be much easier and has the potential to offer services which will then make more sense to people who move into informal.
“As a result we came up with the concept of Mama Bank access points, at that point in time WMB has active client base of around 7000 customers and we targeted under this pilot to increase the number of active customers by 150 per cent.
So by the end of the pilot we said it should be 20,000 active customers,” he said.
He said there will be six MAPs set up in economically active areas, however, with more customers and transactions accumulating, it then will produce a lot of risks and the liquidity management aspect is going to be challenging for them but that’s something they will be working on.
“It’s been a very exciting journey, we supported WMBL as probably the first partner, we supported the institution for the project like this where as an institution, this is the fifth deposit taking women only institution in the world and the first in Pacific and this is something very exciting.
Now that the technology part is working how you do get the human parts working and that is really the challenge but I believe we will work through it, “he said.