BSP: We’ve to recover true cost of our services

BANK South Pacific is continuously increasing its service fees because it has to recover the true cost of providing its services.
This was the bank management’s reaction when pressed for an explanation to its ever-increasing bank charges that of late have enraged most of its depositors.
BSP said that “true cost” referred to the rising cost of running a branch network and that the cost of servicing the branches are also increasing significantly, particularly the security of bank notes being shipped from branches to head office in Port Moresby.
The bank wanted to remind its customers that it is “the only bank in PNG that maintains an extensive branch network and is seriously trying to expand its banking services across the country”.
At present, it has 36 branches, 200 ATMs and more than 2,700 Eftpos machines, SMS banking and BSP Rural.
“All other banks concentrate their services only in main centres and focus on the more profitable corporate market,” BSP said, referring to rival banks ANZ Banking Group, Maybank and Westpac.
It said that “with increased fees, BSP has cheaper, convenient and safer banking options for its customers”.
“By rolling out nearly 200 ATMs and an ever expanding Eftpos and SMS banking service network, BSP has significantly increased customer access options.
“When compared to branch banking, it is more effective for the bank and cheaper for the customer,” the bank said.
The banks said its pricing was strategically set to encourage customers to use their kundu card – one way of reducing over-the-counter-cash transactions – and use electronic channels which are faster and more secure.
The bank said towards the year-end, customers would begin to see the benefits from new system and service improvements it was now trying to introduce.