Building on our Strengths in a Changing Marketplace

1
Building on our Strengths in a Changing
Marketplace

• Caribbean Association of Indigenous Banks31st
  Annual General Meeting Conference
  
• November 15 - 18, 2004
• Sandals Grande St. Lucian Beach Resort Spa,
  Saint Lucia

2
Opportunities and ThreatsWinning Strategies for
Financial Institutions

• Facilitator
• Berkeley Greenidge
• Senior Manager, PricewaterhouseCoopers, Barbados

3
Strategy 101

• Purpose
• Framework for decision making, securing support
  and approval
  
• Basis for more detailed planning
• Mechanism to inform, motivate, involve, solicit
  commitment
  
• Assist in benchmarking and performance
  monitoring
  
• Stimulate change and continuous improvement
• Visionary, conceptual, directional
• Roadmap for realizing the vision, achieving the
  mission

4
Overview of Process

• SWOT Analysis
• Vision
• Mission
• Values
• Business Objectives

• Key Strategies
• Future SWOTs
• Plan Review
• Major Goals
• Strategic Action Plans

5
The world today

• Where we are, how we got here

6
Profile of the Indigenous Bank

• Developed from four streams
• Government savings banks
• Bankers to grass roots (individuals, small
  indigenous businesses)
  
• Nationalization of branch operations of
  internationally active banks
  
• Jamaica specific 1980s economic boom
• Now major players in financial services market
  leaders in OECS sub-region in terms of asset
  base, deposit base, customer base
  
• Bankers to government, statutory corporations,
  IFI projects, etc.
  
• Leaders in product innovation, use of technology
• High interaction with customer base, responsive
  to customer needs
  
• Less risk averse than internationally active
  competitors
  

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Strengths

• Local knowledge
• Responsive decision-making process
• Well trained and experienced staff
• Significant government support
• Ability to utilize risk factors that are more
  appropriate, market focussed
  
• Flexible credit policies
• Vested interest in local economies
• Strong loyalty of customers

8
Weaknesses

• Undue influence by individuals (ability to
  circumvent policies and procedures)
  
• Inability to attract institutional business
• Inadequate risk management functions
• Regulatory restrictions on growth opportunities
• Inter-bank competition
• Public perceptions (lack of confidentiality,
  operating standards)
  
• Credit concentrations
• Inadequate human resources
• Slow rate of introduction of new products and
  services
  
• High costs of technology to support new products
  and services

9
Opportunities

• Ability to leverage on close relationships with
  key stakeholders
  
• Remittances processing and retention
• Customer-driven new products and services
• Loan syndication
• Strategic alliances (shared services particularly
  IT, training, specialized support functions)
  
• Rapid implementation of new products and services

10
Threats

• Industry Wide
• Changing business environment
• Regulatory complexity and burden
• Developing risk management standards
• Reporting and disclosure
• Specific Issues
• Competition, particularly from non-traditional
  sources
  
• Exploitation of (high profit) market niches
• Inability to meet customer demands for new
  products
  
• Technology spend
• Regulatory restrictions
• Liquidity management

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The World Tomorrow

• Repositioning our indigenous institutions for
  survival and sustainability

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Strategic Focus

• Back to basics
• New product and service development
• Integrated financial services, customer-centric,
  technology driven
  
• Focussed marketing
• Next generation retention
• Strategic alliances
• Loan syndication
• Shared services and initiatives
• Human resource development
• Hiring and retention
• Training
• Succession planning

13
A parting word

• If you dont know where you are going the
  Scarecrow said to Dorothy, it doesnt matter
  which road you take
  
• The Wizard of Oz

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Roundtable Participants

• Patricia Sutherland
• Hazel Highland
• Wayne Wray
• Josaine Chin Aleong
• Dirk Smith
• Anthony Young
• Mary Allen
• Orrie Chandler
• Darlene Jones
• Leathon Khan
• Spencer Howell
• Denise Armstrong
• Cooper Williams

• Michael Archibald
• Val Banks
• Franklin Lloyd
• Preston Bryan
• Nesha Debysingh
• Peter Thompson
• Tim Bousaid
• Mala Gandhi
• Hesper Peters
• William McDavid
• Yolande Foo
• Prakas Dhanrajh
• Percival Hanley

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Roundtable Participants

• Phillip Kassiram
• Carlton Glasgow
• Jerry Watterworth
• Jessel Gadsby
• Leo Williams
• Brian Stuart-Young
• Richard Duncan

• PricewaterhouseCoopers
• Maurice Franklin
• Sean Ramirez
• Anton Gopaulsingh