Digital banking is cheap: Exec


BANKING on digital platforms is cheap and more efficient, according to Kina Bank chief executive officer Greg Pawson.
Pawson told The National yesterday in Port Moresby when announcing the bank’s new website that Kina spent around K2 million annually on security.
He said in spite of Kina’s drive to be the leading digital bank it was also committed to traditional banking.
“For traditional banking, we are currently reviewing an opportunity to go into secondary provincial locations across PNG,” he said.
“We have three sites planned for 2022, which will include Alotau in Milne Bay, Popondetta in Northern and Maprik in East Sepik, we have plans underway to establish branches in those locations, in part that will be in partnership with MiBank and we have a strategic investment of 15 per cent in nationwide Micro Finance Bank.”
Pawson noted that operating branches was expensive and this was one of the reasons Kina was keen to get customers using the digital platforms because of its convenience and cost effectiveness.
“It’s more efficient and there is less operational risk then running a branch,” he said.
“When you are running a branch you have to transport cash in and out and you are going to have high security costs and that is one of the challenges in some of the secondary locations.”
He said the bank spent close to K2 million on security and cash handling annually and this was apart from establishment and operational costs of branches.
He said Kina branches would be small.
“We are just working on the business case at the moment and the business requirement for that, but it will be relatively small branches to start with, they won’t be like the branches you see in Port Moresby, and our plan is to do that in conjunction with MiBank.”