BSP’s New Target: 40% of Fiji Market
Bank South Pacific Limited (BSP) has set its sights on capturing 40 per cent of the banking market share in Fiji. Group chief executive officer, Robin Fleming, said BSP’s market share in Fiji was 30 per cent, against Papua New Guinea’s 70 per cent market share.
In other markets, BSP holds 50 per cent market share.
Mr Fleming’s comments followed a welcoming cocktail party by BSP Fiji at Sofitel Fiji Resort and Spa, Nadi.
His last visit to Fiji was two years ago.
Conservative provisions
Mr Fleming said the bank’s $69 million profit was an exceptional achievement.
He hailed BSP country head, Haroon Ali, and his team, for setting the bar high.
Mr Fleming said the profit was a great achievement as BSP recorded the most difficult year in 2020 with the first impact of COVID-19.
He said BSP took some conservative provisions from a landing perspective as some customers found it difficult to repay loans.
“To get to $69 million is a fantastic achievement for Haroon and his team, but the bar keeps getting set higher,” Mr Fleming said.
“The team in Fiji recognise we are looking at continuing to achieve and be better.”
Profits and digital offerings
On the strength of such success, BSP Fiji will focus on building on its profits, Mr Fleming said.
“It is about driving the profit, getting more customers onboard, and being able to increase our digital offerings,” he said.
“Digital offerings also give customers an opportunity to do more transactions without having to come to the branch.
“Moving more of our customers to noncash based, card-based, telephone-based and internet-based transactions, is going to make the payment system more efficient.
“As it becomes more efficient, we are able to lower the cost.”
Since Mr Fleming’s appointment as group chief executive officer, BSP has not raised fees.
Real achievements
Efforts recorded in the last nine years of
his service have been noteworthy.
“The real achievements have been about being able to grow businesses in countries where we took over,” Mr Fleming said.
In every country that BSP has established itself in, profits have grown by a 150 per cent, at the minimum measure, he said.
Transitioning to Digital
Mr Fleming said the transition to digitalisation was slower in Fiji and Papua New Guinea.
“I’ve walked around a few branches today; there is still a heavy dependence on cash,” he said.
“Papua New Guinea is a little bit different to Fiji, because we have far more remote and rural populations.
“You don’t have EFTPOS (electronic funds transfer point of sale) terminals everywhere.
“You don’t always have mobile phones everywhere.”
While Vodafone’s venture into the Papua New Guinea market was noble, it would take the next five to seven years to improve digital banking services, Mr Fleming said.
Retirement
Mr Fleming’s term as BSP group chief executive officer, ends this year
He spent 42 years in the banking sector in Papua New Guinea.
“From an organisation perspective, it is always important to have change,” Mr Fleming said.
“I would like to think I’m doing things right,” he said.
“Organisational change is important.
“It’s not my BSP; it’s our BSP, for everyone in the Pacific and in PNG.”
Mr Fleming hopes BSP will build on experiences of the past 30 years.
Younger generation
Mr Fleming is banking on a younger generation to bring more changes as BSP aspires to continue as the best bank in the Pacific.
“We want to make sure that staff fully expect and understand that it’s not about what a chief executive officer may or may not do,” Mr Fleming said.
“We want to give them the confidence that transition will be seamless when we do select a chief executive officer.”