Papua New Guinea’s banking sector closed 2025 with renewed momentum, driven by a trio of developments that highlight growing competition, digitisation and sector-wide investment in small business growth. BSP Financial Group, Kina Bank and ANZ each introduced initiatives designed to improve access to finance, enhance digital reliability and facilitate smoother international transactions — a welcome shift for PNG businesses seeking efficiency and scale.
BSP led with the rollout of new SME lending tools designed to streamline loan applications and simplify documentation requirements for small business owners. The bank has more than 50,000 SME customers nationwide, and the new products are intended to reduce friction in the credit process, widen financial inclusion and support the government’s long-term MSME expansion agenda. BSP’s move responds to repeated calls from business chambers for more accessible funding pathways, particularly for women-led and rural enterprises.
Kina Bank closed the year with a strong financial performance, underpinned by growth in its retail and SME portfolios and continued investment in digital banking systems. The bank launched upgrades to its mobile and online platforms, emphasising reliability, cyber security and customer experience. Kina executives highlighted digital adoption rates that exceeded expectations, reflecting a generational shift towards cashless and mobile banking across Papua New Guinea’s urban centres.
ANZ extended the sector’s digital momentum by introducing enhanced cross-border payment rails enabling PNG businesses to settle transactions more quickly in Australian, US and Japanese currencies. For import-dependent firms – especially in manufacturing, energy, automotive and retail – the faster payment system is expected to ease supply-chain bottlenecks and reduce holding costs. The new system also offers greater predictability for exporters receiving inbound payments.
Taken together, the banking sector’s late-2025 developments point to a market becoming more competitive, customer-centred and digitally equipped. They also signal growing confidence in the long-term commercial potential of PNG’s SME economy, which remains one of the largest untapped drivers of national growth.
With improved tools for lending, better digital functionality and faster regional transaction pathways, Papua New Guinea’s financial sector appears poised for a more modern, connected and business-friendly 2026.
