| Sports |
A bank for the little
people
By GABRIEL FITO
The Wau Microbank or Grassroots bank
which promotes sustainable economic growth through private sector
development, employment creation and the development of financial
system is proving to achieve results in East Sepik Province.
Wewak's Wau microbank was launched in August last year at the
Prince Charles Oval.
The extension of such banking service to the province was made
possible by Mary Soondrawu, president of the East Sepik Women's
Council and her executives who saw a need for "small people" in
rural areas who do not have access to banking services at
commercial banks.
The bank is conveniently located at the Women's Crisis Centre on
Wewak Hill next to the Wewak Tennis Courts.
The first Wau Microbank began operations in Wau, Morobe province
in April 22, 2004 after it was granted a special license to
operate a microbanking facility by the Bank of Papua New Guinea.
The Grassroots bank offers specialized banking services which
includes savings, loans and other relevant financial services to
the marginalized business sectors, individuals, entities and
groups not presently served by existing financial institutions.
The first branch was inaugurated by stakeholders composed of the
Bank of PNG (Executing Agency), PNG Institute of Banking and
Business Management (Implementing Agency), Asian Development Bank,
Australian Agency for International Development and the Department
of Planning and Rural Development. The first branch was set up in
the town of Wau, Bulolo District in the Southern part of Morobe
Province.
The registered name "Wau Microbank" was adopted to connote the
origin of the new institution where it was established to
re-integrate a large number of grassroots population and business
sectors that were marginalized due to the absence of a banking
institution.
Because of a growing public demand for specialized banking
service, a bigger branch was set up in Lae to provide the needed
financial services to its clientele base. The new location for the
Lae branch is at the second level of Haus Tisa Building on Second
Street in Lae city. At least 3 000 new clients in Lae have already
benefited from the services of the new branch. Overall, the total
number of clients served is over 5 000 as of end of 2006. This
newly established microbanking institution aims to serve an active
clientele based of at least 10 000 in the next five years.
Wewak Branch Manager, James Temessi told the National at the close
of business for 2006 last week that since the bank was first
established in Wewak four months ago there has been a steady
increase in the number of clients opening new accounts with the
bank.
Mr Temessi said even thought it is a small set up, the bank
receives an average of about 20 people opening new accounts each
day.
"Even people from as far as Nuku, Lumi and Vanimo in the Sandaun
Province have traveled to Wewak to bank with Microbank and that
was very encouraging to see," he said.
At the close of business for 2006 last Friday, the bank's client
tally stood at 1 320, however, there are positive indication that
the number is expected to double this year.
Mr Temessi is optimistic that with the growing interest from the
customers in Sandaun province the bank is now working towards
setting up a satellite branch to cater for the increasing demand
for specialized banking service in the province.
The bank offers savings passbooks to individuals, market women's
groups, clan members, family groups, members of farmer or
fishermen association, school children and others. All savings
products earn a competitive interest.
Mr Temessi said the Wewak Branch had so far dispersed over K50 000
to more than 70 clients who applied for loans last year for small
projects and school fees.
He said those that obtained loans have also cooperated well with
the bank and thanked them for their understanding.
Mr Temessi urged parents to open trust accounts with the bank and
teach their children to save money because we have an attitude
problem of spending money unnecessarily with no skills of saving
money.
The bank has a unique program where it goes to villages and does
mobile banking for villagers who do not have time to come to town
to do banking.
Temessi said the program had seen them through all districts in
East Sepik except Angoram which they will visit next week.
One of the institution's promoters, Darusilla Yara from Biwat in
Angoram said grassroots people who have no access of obtaining
loans from the Commercial banks are now being relieved by the Wau
Microbank who is processing loans "just over the counter."
Yara said the bank is really addressing the grassroots' banking
need and expressed confidence that the bank and the people of East
Sepik would enjoy a healthy working relationship this year.
 
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