Banks need to ask questions of themselves

I SAY: The ANZ chief operating officer in Fiji who has complained about Automated Teller Machines (ATMs) being "hogged" by moneylenders should look inwards rather than outwards. He and other banks in Fiji need to ask themselves the following questions:
(i) Are our lending policies too restrictive thus leading to our clients resorting to Money Lenders as a way of raising loans?
(ii) Are the "collaterals" we seek from our clients too demanding?
(iii) Are the interest rates we offer on loans competitive by general market standards?
(iv) Has automation of the banking system affected business and if so, how?
(v) Are Government/Reserve Bank of Fiji regulations stifling business growth and if so, what should be done to either overcome or "cushion" the impact?
(vi) Are we doing enough, ourselves, to educate clients about the benefits of electronic banking?
(vii) Since we recognise the impact private money lenders are having on the banking system and acknowledging the fact that banks are being used by ordinary clients (employees) as a "transit point" what will we do to encourage savings rather than the current "pay-to-pay money box" savings system that our clients are resorting to ?
(viii) How do we, as lending institutions, contribute to national economic development by making small loan applications, business card applications etc, more enticing and less restrictive to small to medium companies?

I SAY: The banks in Fiji have brought the problems on themselves because ultimately, their goal appears to be more inclined towards profit-sharing by the shareholders rather than basic banking services (at reasonable cost) to their clients. They have ventured head-first into electronic and automated banking without sufficient thought to the side effects which include but are not limited to: a sacrifice of the "human" element through a reduction in actual staff numbers (hence more email correspondence rather than face-to-face discussions); acceptance (apparently without question) of government's requirement that the majority of employers pay salaries into employee bank accounts when in fact the employee prefers cash to avoid exorbitant monthly bank charges (etc).

I SAY: While Government should be lauded for putting in place measures to maximise revenue (from general taxes, Value Added Tax, Provisional/Professional Tax etc) and it's genuine endeavour to monitor money-laundering, it also has an OBLIGATION to ensure the costs of ensuring these new measures do not impact unduly on the ordinary Fiji citizen or small business. Government needs to implement regulatory measures on banks which limit the charges they pass on to clients (Fiji businesses and citizens). In the case of ANZ, can the bank explain WHY it charges up to $21 Fijian every time a business transfers salaries into their employees bank accounts? Since the transfer is being done electronically, the banks need to justify their charges, given the "non-human" element involved. If the same salaries are banked manually, the charge does not apply (but the queue at the Teller's station becomes longer).

I SAY: Yes, each business enterprise (including banks) is entitled to a profit. However, I argue that the margin of profit needs to be managed (by regulation) so that the ordinary Fijian citizen and small businesses don't have to face a burden of what amounts to "double taxation" - one by the government and the other by the banks.

I SAY: The banking system in Fiji is such that the larger and well-established business houses enjoy the benefits of modern day banking (including loan raising) without having to face the same hurdles/restrictions small and emerging Fijian businesses face. It is government's RESPONSIBILITY to regulate a level playing field. Otherwise, we perpetuate the often generalised slogan that: "The rich get richer and the poor get poorer".