Westpac: Crime costly

 By GYNNIE KERO

CRIMINAL activities in the country limit business operators such as commercial banks like Westpac which spends 4% of its revenue to protect assets in PNG.

Westpac manager director Ashleigh Matheson said the threat from criminal activities in the country on private businesses was real and costly to mitigate.

He said it was a real challenge not only for business operators such as commercial banks but also the tourism industry.

“The risk from criminal activities in the country is significant and has impact on private businesses, commercial banks and the tourism industry,” Matheson said.

“PNG is beautiful like Tonga and Vanuatu yet very few tourists come here. 

“It is costing the country,” he said. 

He said private businesses needed to have armed guards to protect their assets. 

For Westpac “we spend 4% of our revenue protecting our assets. 

Threat in PNG is not just for banks, it is real and significant cost to mitigate”.

Matheson said because of the risks and the country’s geography, Westpac would continue to partner with local merchants in implementing the in-store banking projects.

He said the in-store project was convenient and was the key to financial inclusion where small village people could access banking services in remote rural areas.

“PNG is a difficult country to expand footprint,” he said.

“There’s no need to expand a network of unprofitable branches when Westpac can partner with small trade store owners which is cheap and can reach more people.

“Westpac’s in-store service allows customers to make a deposit or transfer between their accounts, all from an Eftpos machine at a participating store. 

“Westpac has signed up over 40 local merchants.

“And I am confident we will reach 200 merchants by end of September.”

Matheson said in-store banking reflected Westpac’s commitment to taking banking outside the bank’s branches and to local communities for the convenience of communities in rural and remote locations.