Micro-lender sees surge in customers

NATIONWIDE Micro-bank (NMB) is projecting about  100,000 customers by the end of this month while declaring a before-tax surplus of K636,056 for financial year 2009.
Outgoing chief executive officer Lionel Somaratne told reporters at a farewell function last Thursday NMB already has more than 95,000 clients from 22 branches and is eagerly awaiting the opening of a further 5,000 new accounts towards the end of this month.
Somaratne has attributed this to strong leadership and corporate governance. “This record has been achieved by strong leadership and corporate governance provided by a highly-professional board of directors and dedicated commitment by management and staff,” Somaratne said.
“We make convenient, easy and efficient services especially for the rural people who are banking with us.
“Our customer base is increasing every now and then.”
He said over the years, NMB had granted loans amounting to K95 million to about 30,000 borrowers, while current total deposits stand at K52 million.
Bank assets were worth K62 million, he said.
Somaratne said the corporate plan for the period 2010-14 sought to open a further 10 branches, increase its client based to more than 250,000 and embrace mobile phone banking that is becoming more commonly referred to as “branchless banking”.
The creation of the bank was made possible through funding from the national government, the Asian Development Bank and AusAID.
NMB was originally set up as a pilot mircobank under the PNG ADB microfinanace and employment project.
Somarantne said: “Over the past six years, the pilot scheme has shown remarkable growth.”
By 2007, branches were opened in Lae, Kainantu and Wewak.
“Since 2008, we have established further nine branches in Bulolo, Madang, Port Moresby, Mt Hagen, Finshhafen, Lihir, Kundiawa, Kimbe and Buka, providing services to 11 provinces,” Somaratne added.
The bank now has 22 branches nationwide and is planning to open more in the coming years.