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Shocking Truth About BSP

BSP Waterfront, Port Moresby-Photo credit: BSP website

BSP Waterfront, Port Moresby-Photo credit: BSP website

If you are a BSP customer, you seriously need to read this. This concerns your money in BSP bank.

“When we first wanted to paint the bank green, everyone thought we were crazy”

These where the words of former CEO of Bank South Pacific (BSP), Ian Clyne during a media briefing in Port Moresby.

Bank South Pacific has a colorful history in Papua New Guinea (PNG) and its history spans over 58 years of successful operation in PNG soils. The green money machine has seen an aggressive growth and expansion over the years establishing over 44 branches and 44 sub-branches according to the website PNG Facts.

The current CEO of BSP, Robin Fleming has this to say about the presence of BSP in PNG.

“Having such a large physical presence, despite the high cost of maintenance, means that our customers don’t have to travel far when undertaking banking transactions”

The site PNG Facts notes that BSP has 1.4 million customers. However, not all BSP’s 1.4 million customers are happy.

BSP indeed had its brutal share of criticism from its own customers over the years with most of the criticism aimed at the banks fees.

Leading political figures in the like of former Prime and current governor of New Ireland Province, Sir Julius Chan came out last year in Pacific Business Review newspaper calling for the O’Neil Dion government to intervene to reduce what he described as unjustifiably high bank fees.

The call lead to Central Bank governor Loi Bakani and Prime Minister Peter O’Neil coming out public in media giving their views.

Despite such drastic acts, the public view is such that the bank fees in PNG is still unreasonably high.

The truth in a nutshell is that PNG has the highest bank interest rate margins compared to similar countries in the Asia-Pacific region according to National Research Institute (NR) Research Associate and author Professor Satish Chand.

Professor Chand revealed this shocking news on Thursday 06, August 2015 in a press conference hosted by NRI in response to the current debate on the status of the economy triggered by the release of the Mid-Year Economic and Financial Outlook by the department of treasury.

“If the bank interests rates are high as the experts say, than why charge extra fees”?

This seem to be the question in the minds of the thinking Papua New Guineans.

The three major banks in PNG including BSP, ANZ and Westpac remain firm that their fees are justifiable.

The green bank has an interesting case.

In a media briefing last year, Robin Fleming was taken to task by Pacific Business Review newspaper regarding high bank fees charged by BSP and other banks.

Fleming gave an interesting reply;

“BSP is the people’s bank. Our fees are reasonable and justifies products and services we offer to the people of PNG”

He named the BSP’s fee-free Sumatin Account as an example.

The truth remains to be seen that BSP has outgrown its competitors in areas of research and development, new product creation and innovative marketing techniques and most importantly reaching the unbanked population in the some areas of PNG where its competitors, Westpac and ANZ cannot go.

Some key transaction milestones Fleming disclosed last year (2014) are noted here;

“We processed over 30 million mobile banking transactions, 35 million ATM transactions, 20 million EFTPOS transaction and 13 million branch and sub-branch transaction”

The shocking truth is that despite many complains, BSP has done more for PNG and that we can complain but at the end of the day, many will run to BSP no matter what.

BSP remains as Fleming alluded to earlier, the “People’s Bank”.

It is now up to you are as a wise customer to compare the bank fees of all banks in PNG and go for the lowest because complaining as an individual will never do you any good.

There you go….

 

About EntrepreneurLink (16 Articles)
Entrepreneurship skills, tips, tools, resources and inspiration for Papua New Guineans

29 Comments on Shocking Truth About BSP

  1. Douglas Papaso // August 10, 2015 at 10:40 pm // Reply

    I am interested in this so please keep me posted of everything

    Like

  2. inform me of latest updates on the posts.

    Like

  3. Alma Kiamera // August 10, 2015 at 11:40 pm // Reply

    I am interested in this pls keep me posted.

    Alma Kiamera

    Like

  4. Please keep me posted am very much interested.. Thank you.

    Like

  5. Please keep me posted am very much intereste.. Thank.

    Like

  6. I am interested please keep me posted.

    Like

  7. let’s see it…they keep coming up with extras on my loan repayment every time..

    Like

  8. Eva Soxopana Boas // August 11, 2015 at 12:14 am // Reply

    Please keep me posted, am interested.

    Eva

    Like

  9. Please keep me informed of the latest updates…interested
    thanks

    Like

  10. Justin Herepe // August 11, 2015 at 1:09 am // Reply

    Where is the story already??

    Like

  11. Keep me posted please. Thanks

    Like

  12. I WANT TO KNOW.

    Like

  13. Rachael Ramus // August 11, 2015 at 2:02 am // Reply

    Interested client… please keep me update of the post..
    …………………cheers………………….

    Like

  14. Please I want to know more

    Like

  15. Marlon Joel // August 11, 2015 at 2:58 am // Reply

    Keep me post cause am interested

    Like

  16. Im interested please keep me posted.

    Thankyou

    Like

  17. Im interested please keep me posted.

    Ta

    Like

  18. Please keep me updated on this BSP issue and other news, stories. Thanks.

    Like

  19. The EntrepreneurLink // August 11, 2015 at 11:10 am // Reply

    Appreciate all your comments. Stay informed here for more.

    Like

  20. Interesting analysis. Keep it up.

    Like

  21. Thanks for the brilliant information, please keep me updated.
    That’s very true, the other banks need to compete.

    Like

    • The EntrepreneurLink // August 11, 2015 at 12:11 pm // Reply

      Karu
      Sure. More such posts coming so keep coming back here for more. Don”t forget to follow us vie email to receive daily updates from us.

      Like

  22. I am a bsp customer, I don’t see Bank of PNG taking any action to reduce and control the high fees charged by bsp,the fees are very high for any small to big transactions, and the fees imposed by bsp on its customers is unnecessary, can Bank of PNG do something about this Bsp’s way of charging all kinds of transactions fees..

    Like

  23. Amotls Hawks // August 16, 2015 at 1:51 am // Reply

    Very simple approach to make BSP feel the hurt we the “small people” feel, “Close all accounts with BSP and open with the other banks.

    Like

    • BSP must not charge unnecessary fees to its customers nation wide as so many have felt bad about the way BSP is treating its customers,,Bank of PNG Or which regulator must impose harsh penalties for those commercial banks who are not doing it in the best interest of Papua New Guineans.It is surprising to see simple k100 cannot keep the account active for quite a longtime with BSP accounts,this is too bad while my k20 can keep my West Pac Bank account still active for same period of time.,Bsp must not say grass roots banks,it is a bank of making more money from its customers,charging unnecessary fees..Please PNG GOVERNMENT MUST DO SOMETHING ABOUT THIS AND TAKE NECESSARY ACTION AGAINST SUCH CRUELTY,,

      Like

  24. seen unnecessary deductions and cant understant.pls help by sending more info.i will aurely decide to change

    Like

  25. One possible solution, encourage established Startup Banks to enter the market, yet again there is not enough competition. Innovative solutions are needed to drop costs to reasonable/affordable levels. Right now we are still operating around in a regressive stagnant ineffecient manner. We need a guerilla/special forces approach. Not a conventional slow and big approach, dressing up, maintaining the status quo and stifling the economy. Its been 40 fkn years! Can we try some different fkn solutions already!!!!!!!

    Like

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