Address at the FIB Awards 2011 Presentation Ceremony, Novotel Entertainment Centre Lami on Saturday 3 December by Dr Esther B. Williams, Deputy Vice Chancellr, University of the South Pacific Limited 

The President of the Fiji Institute of Bankers, Mr Norman Wilson,
Members of the FIB Council,
Governor of the Reserve Bank of Fiji, Mr Barry Whiteside,
Commercial Banks' CEOs, Bankers,
Ladies and Gentlemen.


It is indeed a pleasure and an honour to be here with you this evening and to take part in your Inaugural Fiji Institute of Bankers Awards. You are, without a doubt the most well dressed and “richest” if I may be allowed to say so, audience I’ve addressed. When Mr Jogia called seeking my availability for tonight’s event, he was very persuasive. I must admit I did not need much persuasion as I have been wanting to speak to bankers in Fiji for some time on my pet subject of quality banking service, and this opportunity I just could not pass up. Such a captivated audience all together in one room: that group of people who promise to grow our money, bank with us and we’ll grow together, we are well known and trusted name in Fiji and the Pacific, your bank for life and we live together in your world. We are people you can bank on where you, the Customer will always come first. How can we, the customer go wrong with all these promises. He directed me to the Institute’s very informative website saying all you wish to know will be there but if you need more please just call him.

I did spend some time browsing through the FIB website as well as the Association of Banks in Fiji website. I found the websites most interesting. Very clear and easy to navigate. But the extensive pictorial gallery, must be by far the best; very interesting and an excellent record of your activities. I recognized many of you; and one in particular stood out, the lady in black. They say that bankers photographs illustrate market trends. Somber-looking financial traders in recent months show clearly the distress over the volatility of the financial markets; box-carrying bankers where there are massive layoffs in Wall Street only make things worse for those banks trying to make amends. I understand that these boxes of photographs for any bank are being kept together well and recorded and kept away as the excessive exposure by the media and through photographs just do no one in the banking field any good. But our Bankers photographs on your FIB website show very happy faces and collegiality. If photographs are things we can go by, then our economy is fine, our Bankers are getting their profits and our banks we can trust.  

Bankers and Banking in Fiji have come a long way since the first Bank was established in Fiji since 1880. Over the 135 years you have all played prominent roles in Fiji’s economic development through your services, innovative products, use of new technologies, and renowned customer services. I remember the days when every young person wanted to go into banking instead of going on to University. As a school leaver when asked what they wanted to be, the response would invariably be: a Banker or to work in a Bank. This is still a preferred profession now and Banks employer of first choice. But the requirements to get into the Banking profession have been raised from sixth or seventh form to certificates, diplomas but mostly degree now.  And here I thank the FIB for assisting USP over the years in upgrading the banking profession by assisting in our Banking programme. The Chair of Banking was funded by you and the RBF and we have continued to support this recognizing its importance to the development of the region.

But the changing job market, technological development and changing workplace and customer demands have necessitated timely changes. New legislation, new services, new technologies and global best practices and services have changed the world of work in banks. And so we need a new breed of people in the Banks. Not only accountants and economists and financiers, but psychologists, marketing and communications people and friendly service providers.

But even though we now have the brightest minds, the most strategic, the most enthusiastic, innovative and most educated people in the banking profession globally, we have a serious financial crisis on our hands that is breaking up the European Union, marginalizing so many and making many developed countries uncertain of their fiscal and monetary policies, and no doubt will impact us here. When you listen to the news daily you are struck over the unplanned nature of how the banks and the leaders of the big economies are handling the crisis. One day, collectively the Bankers believe that giving more and more loans to bail countries out will solve the crises. Next day they change their minds and put in place new strict reforms and measures. Next day they do something else. The cleverest financial people on this planet have failed us all dismally. Interesting, I was listening to BBC’s “Have your say” the other day Wednesday where they had a number of young students from different parts of the world taking part in a debate on whether the leaders in Europe were approaching this financial crises the right way. They all said, no. They all said that while Germany was leading the charge and putting in so much money, there seems no strategic direction and plan. Very soon Germany too will run out of money. There was the question of whether China will bail the troubled European nations out of this crisis with its USD3.2trillion Foreign-exchange reserves as at June 2011 (IMF) – the only country in this very comfortable position. A professor from Harvard said this was the most preposterous idea and it will never happen. But time will tell.

But the most interesting comment for me came from a journalism student in Ireland with two children. She said “the trouble with this entire calamity and the dire financial situation we are in, is because our leaders in government and in the Banks have gone past their “use by date”. They cannot even start to think or provide workable and sustainable solutions”. I pondered. I connect this term “use by date” to products not bankers and people. So Bankers, people out there are thinking of you as products and you must make it count. 

Maybe our European leaders need to learn from Asia and the Pacific. I was in Vellore, Chennai, India last week. I was attending a meeting of University Vice Chancellors and Presidents of Asian Universities. We were invited to attend this Forum. So far away from the Pacific but yet I felt at home there. The message we were given was loud and clear: The process of globalization which has accelerated technological progress and economic advancement is neither a recent development nor is it only a western contribution. This century is Asia’s century in every way – economically, financially, business and new creative industries, manufacturing, building, technology, auto industry (there is a huge massive Hyundai assemble factory in Chennai), fashion, film and media, etc.

With two economic giants, India and China, leading and steam rolling ahead, one democratic where corruption is part of the economic culture surviving despite the protests from Anna Lazare and her anti- corruption group, and one a communist state and is the only country with high foreign reserves, we have to admire them.

I was fascinated with Chennai. The IT city of the world, bustling with activity and people, animals, cars and cows on the road. And financially vibrant. And all want to learn. It is the medical tourism capital of the world and soon they will be setting up an Education Development Bank of India (maybe we could add this to FDB’s portfolio) to focus on the central role of education in the development of the country as the basis of any economy is its trained and skilled people. And here I have to applaud our PM and government for putting Education First and the building of a knowledge society in the 2012 budget. It is the step in the right direction for Fiji.

If you ask any adult which services they consider important in their lives and wellbeing, they will list: doctor, dentist, optician, hairdresser, beautician perhaps, a good cook, and their banker. The Banker is not Life or Death type of person but one needs a Banker who will provide Good financial advice, good saving options, good interest rates, excellent credit facilities, low fee charges, information and education - everything. So bankers, we cannot do without you too. Quality services are then key for most clients, indeed many demand this now if you are to remain relevant and needed, you need to surprise us.

Please allow me to share some of my personal banking experiences with you that will highlight the importance of quality banking services for all. This is not meant to be a criticism.

Banking is supposed to be the easiest of services, enjoyable too if you can make it so. But this is not the case in most Banks in Fiji. I know as my family members bank in four of the Banks and we exchange notes. I remember the day I went into the bank and tried to withdraw more than the 1000 limit to fix my mother’s house in Raiwai. Not in the corporate banking space but normal tellers where everyone else goes. The response from the teller was, why did I wish to draw this money and what was it for; and I needed to show an ID. The ID was not an issue, but asking what the money was for was not the Bank’s business. I looked at the person and said you’re joking, its my money I do what I want with it. Well, you cannot draw this unless you let me know. On principle I refused and asked to see the manager. But the very next time I withdrew over 1K I was again asked the same question. This got sorted out. I moved my account. So banking is a stressful and harassing business sometime. CEOs please get that message to your colleagues. Friendly and helpful service is what we need.

ATMs. Have you experienced going to the ATMs and after inserting your card, a notice comes up saying “Insufficient funds”. You try again and the same message comes up. You know this is not correct and you feel a shiver and wonder whether the Bank has lost all your savings! I felt like that once. I always wonder whether it is insufficient funds in the Bank or my account. Because you are afraid a third insertion may lead to the card being chewed up so you leave it. If it’s a weekend you cannot check unless it is BSP or Westpac card thank you to these two banks that open for customers on a Saturday. Maybe others should follow suit and indeed an issue which FIB could consider – introduce new banking hours for all Banks and also open more service centres instead of people queuing up for long periods in WESTPAC in MHCC and BSP in City Central. Collectively the five commercial banks boast about your many branches and your increasing ATMs all over the country, your agencies and centres. I am sure you can open longer hours in the main centres.

The loan facility is another area that could be improved. One bank was ever so efficient where a request for loan took a day; and another took 3 months with so many questions that I was tempted to cancel my loan as in the end the bank is making money from the high interest they charge. So to customers, if you have the money, a loan maybe not the right strategy.

Fees and charges for services. When I was on the Board of the Reserve Bank I had often questioned the high bank fees for all services especially for just keeping savings accounts for school children or children for that matter and rural accounts; and retired persons. I know the RBF could not deal with this at the time and was happy that the consumer council has done a review of this recently. If you visit all the 5 commercial banks websites, you will see that all the Banks try and justify the charges and fees and why they have to do this - Non-interest income (ANZ just reduced the rate of foreign transactions by 75% from 32FJD to $8 a transaction over the Christmas season, this is very high). I understand that you must make a profit but not too much.  I am not sure what a reasonable profit should be. I remember when Mr Siwatibau was alive we used to have long discussions over the profits that Banks can and should make from our money. His answer was always – invest it. Perhaps Credit unions is a way to go as they are offering higher interest rates than Banks at this time.

And the last experience is just how safe is our money in the banks. We customers bank on you to care for our savings. But when we find that the care we expect is not provided or compromised in a Bank we all lose confidence and hope. But what can we do. We cannot draw our money and keep it home. So Bankers we trust you. Improve your security and Internet banking. This should be a high priority.

I would like to end by saying a little about the Budget 2012. Last Friday I attended the budget presentation by the PM with our Deputy Chair of Council Mr Ikbal Jannif. I was rather nervous as while USP is on a triennium budget approved by our committee of regional finance ministers chaired by the Finance Minister of Fiji, one cannot be too sure till the announcement. We did get our allocation and was happy with this. But during the presentation when the PM was giving away so much I asked Ganesh Chand sitting beside me, where will we get the money from to finance all this. He said VAT. Vat came it was not increased either. Then came the tax cuts. This was a give away for many people. We will all be taking quite a bit more in our pay packages monthly and annually. And for any of you who think some staff in USP is in the 270,000 and above bracket, sorry we are not and good too as we will not be charged the heavy levy.

But what this all means is that if we have more money in our monthly take home pay than in the past, we are expected to spend this and put the money back into the economy. It is hard to gauge the spending culture of people but if you are like me (and some of my friends I see in the audience) who are compulsive spenders, spend your money because if you put it in the Bank, the bank gains again and we are given a low interest.  (refer to KPMG statement) Maybe Bankers, you could consider raising the interest for savings from the low 2% normally to 5-6% from 2012 as your parent companies do.

But I think it is a bold and people focused budget. It is good for small businesses and also for education. It is good for sport, music, tourism, agriculture and regional development. I know some people living abroad are already talking about coming back or coming to set businesses here in Fiji. It is good for Fiji.

In closing, I would like to say that I am very delighted to be here and be part of the inaugural awards presented by the Fiji Institute of Bankers. FIB is an important body serving the country and the community for over 20 years with progressive quality banking services and we look forward to greater improvements. Your accomplishments and your mission are commendable. You are important to the development of Fiji and to us the people of Fiji. And we will be watching you all closely as you move ahead and promising us the people that we can Bank on you for our future.

Congratulations to the winners of the Inaugural awards. I wish you well in your future. I also wish all of you present this evening season’s good wishes and I thank you warmly for your attention.

Vinaka vakalevu and Dhanyabaad

Dr Esther Batiri Williams