Villagers to benefit from new banking system

HUNDREDS of villagers in Manus will benefit from a new banking software through a partnership between the Manus government and the Australian government.
The new bank soft system has enabled the Manus Savings and Loan Society to update their transaction records which were about five months behind.
Society chairman Ben Pondrein said the new software reduced the risk of banking errors and made it easier for members to make deposits.
“For the first time, we have a system which will improve productivity and reporting, enabling growth in village finance and banking deposits,” Pondrein said.
“It will also provide an opportunity for increased lending for business investments and small to medium sized enterprises in the future.”
The updating of the society’s records has enabled a K40 interest payment to be made on each account.
This is the first payment since the scheme started in 2010 with future interest payments to be paid annually on a percentage basis.
The Manus administration established the village finance scheme that has 94 village accounts holding K307,000 in combined deposits, according to the Australian High Commission.
Those expected to benefit from the system update are the 5000 Village Finance members, who pool their savings in shared village accounts, and about 3000 individual account holders with the society.
The partnership between the Manus provincial administration and Australia is focused on supporting economic development on the Island (Manus) through initiatives including business training and financial literacy programmes.