• Two New Providence locations by September 2022

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Bank of The Bahamas yesterday revealed it plans to buck the industry’s downsizing trend by opening two new branch locations on New Providence by September 2022.

Kenrick Brathwaite, the BISX-listed institution’s managing director, told Tribune Business that it will establish a physical presence on JFK Drive “by the six-legged roundabout” as well as a location at the One West Business Park on Windsor Field Road in western New Providence.

When asked why Bank of The Bahamas was going in the opposite direction to its Canadian-owned rivals, which have drastically shrunk their Bahamian branch networks amid the headlong rush ti digital banking, he replied that the institution was seeking to raise its profile and “catching up” after going through two two taxpayer-financed bailouts collectively worth over $267m.

Together with the “significant renovation” of its Freeport branch, Mr Brathwaite said Bank of The Bahamas is investing “millions of dollars” in its branch network upgrades. However, he added that this was likely to result in a significant increase in employment as any staffing gains from the new branches are likely to be “offset” by increased automation and efficiency elsewhere in its business.

The branch expansion was revealed in Bank of The Bahamas just-released 2021 annual report, which disclosed: “As the bank entered the second quarter of fiscal 2022 [its year-end is June 2022], renovations were well underway for its Freeport branch that sustained damage from Hurricane Dorian in 2019.

“With renovations designed and executed by the firm of Bruce LaFleur and Associates, the branch is expected to set a new, spectacular standard for customer experience and completion is anticipated by December 2021. Meanwhile, the Board of Directors has also approved the addition of two new branches in New Providence.”

Contacted by Tribune Business, Mr Brathwaite said Bank of The Bahamas will be leasing - rather than owning - the real estate for those two branches. He added that the JFK Drive property is presently being constructed by Sunshine Holdings, which is chaired by Sir Franklyn Wilson.

“There’s one at JFK, which is on the six-legged roundabout,” he disclosed. “You’ll see the structure going up now. We have a sign saying that we’re coming. We’re not making a big deal of it. The other one will be out west at One West Business Park, which is just before you get to Charlotteville. It’s part of the complex there now, and we expect it will be ready in a maximum of six months.”

As for JFK Drive, the Bank of The Bahamas managing director said it was targeting September 2022 for an opening. Between the two new branches, and the “facelift” to the Freeport site that it owns, Mr Brathwaite said the BISX-listed institution will be investing “millions of dollars” in an element of commercial banking many competitors have been exiting.

Asked why Bank of The Bahamas has elected to go in this direction, he explained: “We had a bad stretch leading into 2017-2018. Our strategic plan calls for the strengthening of our structures, which means everything physical and IT system structures, and personnel. The other banks have had a long run where they have not had disruption in certain things.

“We’re basically catching up. The Canadian banks’ model and philosophy are completely different from local [Bahamian-owned] banks. That’s not as model we’re going to adopt. The other banks have not adopted that model. The local banks will always have to invest in this country because we know we’re here for the long-term.”

The two new sites will take the number of Bank of The Bahamas branches on New Providence to six, and its nationwide network to 14. However, Mr Brathwaite said it was “hard to say “ how many jobs will be created by the expansion.

“We’re also investing in infrastructure which brings a lot of efficiencies and automation,” he explained. “It’s hard to say whether that will offset staffing needs or means we will transfer staff to open the new branches.

“I don’t think the number will be high because there’s a level of attrition we have to adjust to because of automation and efficiency. That will offset against any additional staff we’re going to require.”

As for the Freeport renovations, Mr Brathwaite added: “We’re a bit behind schedule because of COVID-19 and the supply chain cut-off, but we expect that to be completed by February. We’re doing significant renovations to that entire building.

“That project has been going on for a little over a year, and Freeport is part of our strengthening move. We’re talking about improving our overall profile, and that is part of that as well.”

Mr Brathwaite said Bank of The Bahamas is aiming to complete the initial phase of its strategic plan, which requires it to lay the foundations for sustainable future growth and profitability, by June 2022 via enhancements to online banking for corporate and individual customers as well as automating internal processes.

Wayne Aranha, Bank of The Bahamas’ chairman under the Minnis administration, wrote in the annual report: “In the past year, the bank began the process to fully automate its loans processing and delinquency management systems, a new portfolio of EMV chip prepaid and credit cards was launched, and the range of electronic banking services available through our online banking platform was expanded.

“I am also pleased to report that the second phase of the ATM (automated teller machine) expansion programme was completed. This phase included the deployment of five new off-site ATMs in New Providence and, for the first time, an ATM installation in Kemp’s Bay, Andros.

“In fiscal 2022, the journey continues with the imminent launch of Contactless chip prepaid and credit cards, a new corporate website inclusive of online applications, and a new corporate online banking platform and mobile app, as well as the launch of a debit card.”

Mr Brathwaite, expanding on these developments, said the bank’s credit card portfolio was smaller than it should be but it wanted to finish the development of the contactless chip cards before “jumping full force” into this segment of financial services.

“We expect contactless to be finished by mid-January,” he told Tribune Business, “and after contactless we’ll talk about the expansion of the credit cards. As soon as contactless is finished we will go full force into debit cards and the expansion of the credit card portfolio.

“We’re talking about a new credit card including rewards. I think our credit card portfolio is a bit lower than it should be. We don’t want to jump into that market until we finish the contactless part of the security feature. That will allow us to jump full force into debit and credit cards.”