PNG Microfinance Limited

Improving performance and expanding MSME lending in Papua New Guinea




PNG Microfinance Ltd. (PML) is a microfinance institution in Papua New Guinea serving over 90,000 depositors and 3,000 borrowers with savings and loan products provided through nine branches and five service centres.


Strengthen performance, with a special focus on improving operational efficiencies, portfolio quality, and revenue.



Reversed trend of annual losses in 2008 to profits in 2011, in large part due to operational improvements.

Achieved a threefold increase in the loan portfolio in three years while maintaining a portfolio-at-risk below 10%.

Launched two new credit products and one new savings product.


The Doorstop Banking model extended access to finance to individuals unable or afraid to travel long distances in Papua New Guinea where there are many logistical and safety/security challenges.

New market segments such as coffee and oil palm growers gained access to and increased use of PML’s savings and credit products.

Service centres opened in remote locations brought savings and credit capabilities to villages that had never before had access to financial services.


Assessed PML’s core products, risk management systems, internal audit and control functions, human resources, communication systems and technology plan.

Developed new procedures for underwriting and recovering loans; reviewed all the files in PML’s loan portfolios to inform the design of new policies.

Implemented a new IT infrastructure to increase mobile connectivity between branches.

Delivered technical training for over 200 employees to ensure new techniques and policies were implemented at every level of the company.

Piloted a Doorstop Banking model where agents brought savings services to the doorsteps of customers deterred from travelling to a branch due to distance, expense or security.

Piloted a service centre at a fishing village 45 minutes outside of Pore Moresby to mobilise savings and increase the outreach of the branch network, and then opened a second service centre in a village five hours from the city centre using the learnings from the pilot.


The PNG Microfinance Ltd. engagement reinforced the importance of maintaining a consistent team working on the ground. Through the duration of the project there was an embedded team, engaging with management and staff every day and reaching even the most remote branches of PML to provide real implementation assistance. These elements were critical to the project’s success, especially in an operating environment as challenging as Papua New Guinea.

Papua New Guinea