Kina Bank CEO Ivan Vidovich on being a leader in financial innovation
Kina Bank has been leading the way in bringing digital banking products to Papua New Guineans, most recently with the launch of the Pei Beta digital wallet earlier this year. Its CEO Ivan Vidovich shared his bank’s vision on digital payments and innovation in an on-stage interview at the Innovation PNG 2026 Awards in Port Moresby.
Kina Bank CEO Ivan Vidovich speaking at the Innovation PNG 2026 Awards. Credit: Lennox Matainaho
Q
Kina Bank has introduced multiple digital banking products to the market, including the Pei Beta digital wallet this year. How has this been received?
A
It’s been received incredibly well, probably even a little better than what we [initially] thought. We’re getting great feedback about some of the core functionality such as instant peer-to-peer payments, QR code payments at merchants and fee-free bill payments.
At the moment, the Pei Beta wallet is accessible to our existing Kina Bank customers. All they need to do is download the app, and sign on with existing personal online banking credentials.
“The listing of PNG’s first corporate bond … was a moment of absolute pride and a real watershed moment for PNG capital markets.”
We’re working very constructively with the regulators, the BPNG [Bank of Papua New Guinea] and FASU [the Financial Analysis and Supervision Unit] to open digital onboarding to a broader market in the second half of this year through eKYC [Know Your Customer], so that the product becomes accessible to a broader market.
Building interoperability into existing payment networks is also a key focus.
Q
What’s the future for digital payments in PNG?
A
Following the development of the telco market is a good place to start.
The telco market is extremely competitive. Accessibility has improved. The cost of data has come down, the cost of handsets has come down, and over time the market will continue to transition from traditional SMS banking to more contemporary platforms.
That’s why we’ve invested into our mobile enabled products, including Pei Beta, Kina Pei, and our mobile banking app.
Q
Kina has also raised capital in innovative ways, including a K235 million corporate bond – the first ever in PNG – in May. What does this mean for the bank and for PNG’s capital markets?
A
The listing of PNG’s first corporate bond was the culmination of 18 months of extremely hard work.
But it wasn’t just about hard work inside the bank. There was a real collaboration involving the Bank of Papua New Guinea, the PNG Securities Commission, the PNGX and PNG Registries. Some of those stakeholders had worked for many years to create the conditions and the frameworks that enabled us to pursue the bond rather than the traditional path of raising capital.
This was a moment of absolute pride and, I think, a real watershed moment for PNG’s capital markets.
For Kina Bank, this enables a source of capital to support our medium to long-term growth.
For institutional investors in PNG, it provided a new opportunity for investment that wasn’t there before; diversification is extremely important, especially as the economy continues to grow. The bond was oversubscribed, showing that the appetite in the market is strong.
For the broader capital markets, it’s a sign of what is now possible, and we are hopefully that it may encourage others to follow suit. We also see benefits such as encouraging more liquidity on the PNGX.
Encouragingly, we’ve been receiving inquiries from corporates seeking advice about how they might raise capital to fuel their growth. There are other opportunities too, for example, green bonds would be a great way to help support the growth of the emerging green sector, including in areas such as Agri and SME. Our investment banking team is open for business, and we are happy to help.
Q
Kina has just unveiled its 2030 strategy. You have stated that innovation is a key part of that strategy. Can you share details?
A
It was important to get a head start on our 2030 strategy. Over the last six to nine months, we’ve established a number of strategic proof points. These have included our investment in NiuPay, the listing of the corporate bond, major upgrades to personal online banking and our mobile app, as well as the launch of Pei Beta.
We are soon launching an entirely new Corporate Online Banking platform, which significantly improves our levels of services for businesses, big and small.
Our 2030 strategy aims to keep Kina at the forefront of the banking and financial services environment, which we think will evolve as rapidly in the next five years as it has in the last five.
We’re also challenging ourselves and our competitors to do better. We’re actively advocating on key issues such as interoperability of payment systems and reducing the cost of banking for customers. We want to lead from the front and play a meaningful role in advancing the industry.
This is an edited excerpt of an interview between Kina Bank’s CEO Ivan Vidovich and Business Advantage International’s Publishing Director Andrew Wilkins conducted at the Innovation PNG 2026 Awards breakfast in Port Moresby on 3 June.
