The Papua New Guinea commercial banking industry will see its newest member open its doors in the country as TISABANK launched its formal entrance on Friday last week.
In formally launching the bank at the event, National Planning Minister Sir Ano Pala described the occasion as a “Milestone in the financial landscape of Papua New Guinea”.
TISABANK CEO Sunit Pakharel described the journey as a long one that was not an easy task, describing a lot of moving parts needed to get a banking licence.
One that started the journey from 2008 to the present, he described the pathway that included legislative amendments to the society’s act in 2015 that allowed commercial financial transactions through the establishment of Tisa Community Finance, a precursor to the eventual establishment of the commercial bank.
“The Teachers Savings and Loans Society Act had to be amended before any progress to be made and after years of perseverance the act was finally amended in November 2015.
This amendment paved the way for the savings and loans society to pursue commercial banking transactions,” he said.
TISABANK board chairman Moses Koiri reminded all present on the values aimed for of the new bank would not be just based on the profitability as a standalone objective, but it means to deliver better service to all customers and current members that stand at around 85,000 strong.
“Today, these are as over 85,000 members, primarily consisting of teachers and public servants who are already our customers,” Koiri said.
He added the other main agenda is to support entrepreneurs and providing financial tools that help everyday Papua New Guineans build better lives.
Sir Ano Pala, on behalf of the national government hailed the entry of TISABANK as one that has greatly improved the slump in the banking sector following decisions by major players such as ANZ that saw it sell its retail banking business and Westpac proposed sale that saw competition regulator stepping in to stop the sale a few years ago.
“The establishment of TISABANK signifies not just the introduction of a new financial institution, but a vital banking alternative designed specifically for the people of Papua New Guinea.
“The entry of TISABANK into our emerging and revamped banking system injects much needed competition into the sector and essential catalyst for innovation and improved service.
He added that the winner in increased competition would always be the average Papua New Guinean.
“As more providers compete for customers, we can expect a further range of products and services tailored to the immediate needs of Papua New Guineans,” Sir Ano added. Following its logo launch earlier this month, the newest entrant into the commercial banking sector sees a stark improvement in the number of players in the industry with the recent entry also of Credit Bank.