BSP launches innovative SMS banking





Ever considered the time when a bank deposit or a loan repayment would be only a mobile click away, cutting through those long queues and eliminating the paperwork?
Well, bank customers in Papua New Guinea are smiling—thanks to BSP’s (formerly Bank South Pacific) new innovation using mobiles to make those banking transactions.
BSP Chief Executive Officer, Ian Clyne in announcing the latest in banking innovation said: “Using your personal mobile phone to handle day to day banking transactions has become a reality.
“BSP is proud to lead the way and to make this latest technology available to our many thousands of valued BSP customers, bringing a new, secure, safe and convenient way to do your banking here in PNG.
“This will save BSP customers a lot of time, as once connected to SMS Banking, this innovative method will make it so much easier for you to do your banking anytime, anywhere," he said.
“You’ll have access to your banking on your personal mobile phone 24 hours, seven days a week.”
BSP General Manager Retail Bank, Kevin McCarthy said, “This is a great opportunity for  our customers to move forward in their approach to banking and use the latest and best methods available, with help from our friends at B Mobile and Digicel.
"SMS Banking will enable BSP Personal Account customers to determine their account balance anytime—day or night—using safe and secure access via their mobile phones. 
"It will also allow customers to view their last three transactions, enable the transfer of funds between linked accounts, and even transfer funds to a nominated third party account within BSP.
“This innovative banking will make banking so much easier for you to do your banking anytime, anywhere.”
 To access this service, one can apply by picking up an application form from their nearest BSP branch, or you can download a copy from BSP’s website at www.bsp.com.pg.
BSP SMS Banking means you may do your banking without the need to visit a branch or use an ATM.
It also provides the following services:
• Find out your account balances on linked accounts.
• Obtain details on your last 3 transactions on your linked accounts.
• Transfer funds between your linked accounts.
• Transfer funds to nominated 3rd party accounts with BSP.
The SMS banking service is only available to BSP account holders and access to it will be limited to areas of PNG where the mobile service providers have network coverage and where SMS services are available. 
There are no charges incurred and you use the service through the SMS service on your mobile.
Clyne said that since the launch of SMS Banking, BSP has seen a huge increase in customer enquiries.
“Our people are geared up for this and we are processing applications with absolute minimal delay.”
BSP has cemented its position in the Pacific by opening branches in Niue, Solomons and Fiji.
It took over the National Bank of Solomons and the Habib Bank in Fiji, providing competition to traditional overseas bankers Westpac and Australia and New Zealand Banking Group.
BSP posted a US$115 million operating profit before tax last year, up 16 percent from the previous year on strong business condition in the country.
Meanwhile, BSP announced a major capital raising exercise last month, with the intention to raise as much as K200 million in what is to be PNG’s first bond sale, reported Bloomberg.
BSP was offering K100 million of 11 percent subordinated notes to local investors, due May 2019 and it may double the sale, according to its prospectus.
“We’ve already had verbal commitments for 70 million kina so initial interest has been extremely good,” CEO Clyne told Bloomberg early last month.
“Part of the bank’s strategy is to improve our cost of capital and historically there have been no Tier 2 instruments ever issued.”
Investors in the bank’s bonds may include landowner groups that receive royalties from mining, according to Australia-born Clyne.
The Papua New Guinea central bank’s base interest rate is 8 percent, he said.
“The government and central bank want to develop the bond market in PNG and we’re going to request these bonds be listed on the Port Moresby Stock Exchange,” he said.
“You also have the LNG project, InterOil, plus a number of other companies here that perhaps could go to the capital markets to raise liquidity versus coming to the bank.”
Standard & Poor’s rates BSP’s debt B-, the sixth highest junk grade, according to the BSP website.
The bond sale closes on June 5.
BSP has 35 domestic branches and overseas units in Fiji, Niue and the Solomon Islands.
It reported a net income of 228 million kina for last year, an increase of 19 percent.