by Theckla Gunga – EM TV, Port Moresby
The Bank of Papua New Guinea (BPNG) has placed PNG against some of the world’s best economies, with the successful implementation of a national payment system.
The Kina Automated Transfer System, or KATS, is classified as world class standard and is timely for financial transactions amongst commercial banks and BPNG.
KATS, although being a new financial transfer method PNG’s banking system, has already received positive comments from commercial banks and other financial institutions.
This system allows the automatic transfer of money from one bank account to the other. It is a safer way of transferring large sums of money and can be used by government bodies, business houses and individuals.
The idea, initiated by BPNG Governor Loi Bakani in 2011, was to create an efficient system to reduce the cost of transactions and improve on efficiency in the payment system. It took three years before Bakani’s vision became a reality and as of the system’s launch today, average bankers will benefit from it.
The system itself marks a significant achievement for BPNG and the business sector in PNG.
Key elements of KATS include speed and certainty of payments.
The system is also designed to reduce fraud and systematic risks, which is something most banks have been trying to minimise. KATS will support new developments such as mobile payments in rural areas; cheque processing will be faster and more accurate, taking one to two days to clear.
KATS will be an ongoing project and commercial banks will be playing the role of widening its usage across the country.