By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

ROYAL Bank of Canada’s (RBC) BISX-listed mortgage financier has this week imposed $500 daily automated teller machine (ATM) withdrawal limits in a bid to better protect customers from fraud.

The Canadian-owned bank, in a statement responding to Tribune Business inquiries, confirmed that the changes - which also involve the imposition of a maximum four “free” monthly ATM withdrawals per client - will only will impact FINCO (Finance Corporation of The Bahamas) clients.

It said: “At RBC, our priority is safeguarding the security and financial wellbeing of all our clients. In line with keeping this commitment, we implemented an adjustment to the daily ATM limit for our RBC FINCO clients.

“It is important to highlight that this adjustment only affects our FINCO clients and does not apply to all our RBC clientele. RBC FINCO is the mortgage subsidiary of RBC. We have proactively made efforts to notify our FINCO clients about these changes.”

FINCO customers were informed of the limits in a letter dated April 2, 2024, which explained that the changes were intended “to ensure your banking experience is not only convenient but also secure”. If clients need to access more than the $500 ATM daily limit, they will now have to physically visit a branch and conduct an over-the-counter withdrawal.

“At RBC FINCO, we are continually evolving to ensure your banking experience is not only convenient but also secure. As part of these ongoing efforts, we have decided to adjust our daily ATM withdrawal limits,” FINCO’s managing director, Deverson Warner, told clients.

“Effective Tuesday, April 2, 2024, the new daily withdrawal limit will be set at $500. This adjustment is a proactive step towards enhancing the security measures that safeguard your accounts and personal information.

“While we understand this may mean a change to your banking routine, we want to assure you that this decision was made with careful consideration to ensure that your funds remain safe and protected,” the letter added.

“If you require a daily withdrawal amount exceed- ing the $500 limit, we encourage you to come visit any of our branches to conduct an over-the-counter withdrawal transaction. Please note that RBC FINCO savings account holders will now enjoy four free ATM withdrawals per month.”

Mr Warner also advised clients to “actively monitor accounts for any suspicious activity” and to be wary of sharing PIN (personal identification number) or password information with third parties.

“As part of taking care of your financial well-being, we encourage all clients to actively monitor their accounts for any suspicious activity. Please remember that you should never share your PIN with a third party,” he added.

“RBC FINCO will never reach out to you asking you to provide us with your PIN or password. If you notice any transactions that seem unfamiliar, or if you suspect any fraudulent activity please contact us immediately at 242-356-8500. If you have any questions or concerns regarding the new daily withdrawal limit, please contact your relationship manager.”

The changes come just as FINCO has released its 2023 annual report ahead of its upcoming shareholders’ meeting. Chris Ronald, the mortgage lender’s chair- man, said its shrinking loan portfolio was showing signs of “stabilising” but admitted there was more work to do in reversing this trend.

“This past year also saw a 2.2 percent decrease in our loans and advances to customers, amounting to $608.8m,” he wrote. “This reduction is primarily attributed to challenges faced in credit origination and the write-off of non-performing loans. However we are pleased to report that our strategic efforts to address this decline have made a positive impact.

“A key focus has been to empower our relationship managers to actively build their portfolios through targeted acquisition activities with developers and realtors. Additionally, we have hosted client advice events and leveraged our network of contacts to generate new business opportunities.

“As a result of these initiatives, the declining trend in our loan portfolio has shown signs of stabilisation. While there is still work to be done, we are optimistic about the progress made thus far and remain committed to further strengthening our loan portfolio in financial year 2024.” However, FINCO still performed well enough to declare dividends equivalent to $1.50 per share for the financial year to end-October.

“Notwithstanding the growth and non-performing loans challenges, the bank continues to maintain a strong capital position well above regulatory guidelines and adequate provisions for any potential negative impact from non-performing loans. We remain profitable, and there are no liquidity issues,” Mr Ronald added.

“The Board reviews the payment of dividends every quarter and will continue to carefully monitor the economy, the mortgage portfolio and overall performance to ensure prudent management of RBC FINCO’s financial performance.”