Banking competition set to hot up
Banif planning nation-wide branch network
Banif Bank Malta is planning to be up and running within a few months, with a headquarters and two branches open by the end of this year and up to 30 branches in five years' time, its CEO, Joaquim Francisco da Silva Pinto has told The Times Business.
The Portuguese bank, granted a retail bank licence by the MFSA in March, intends to take on HSBC Bank Malta and Bank of Valletta by offering all services normally expected by retail banks in Malta but with a stronger accent on customer services.
"We have studied the Maltese banking sector for some years and clearly there is space for another retail bank. The feeling we get is that many people want something different, they want new partners and alternatives," Mr Pinto said at the bank's temporary offices at the Westin business centre.
The Lisbon-based Banif group has a 60 per cent holding in the new bank, with the balance held by Maltese investors.
Mr Pinto said the bank will be headquartered at Gzira. It has acquired a property which will become its first branch in St Julians and a decision will be taken soon on a property to host the second branch. The bank has so far not found the type of property it is seeking for a presence in Valletta.
"Banif Bank has a specific model for the layout of its branch offices, so it is not easy to find the space in Valletta but I expect we will be able to." The bank eventually plans to have branches in most localities.
Mr Pinto wasted no time when asked what the plans for his bank in Malta were.
"Well, basically we wish to be a major player in Malta" he said. "We are coming to Malta because we have studied the market and because we trust Malta. We will employ the experience we have gained in many countries, but especially in markets which are about the same size of Malta. We originated in Madeira, an island with approximately the same size and population as Malta and we are the biggest bank there.
Although we are present in mainland Portugal, Brazil, the United States, the UK, Canada, Spain, Venezuela, South Africa and Cap Verte, we have not forgotten our roots. We see logic in attempting to replicate in Malta our success in Madeira and the Azores.
"Malta and Madeira share tourism and financial services as the major contributors to GDP. We therefore feel we can contribute substantially towards ensuring that Malta and is businesses take full advantage of the new circumstances arising from EU accession because we have experienced it before."
He said the bank's growth timetable was not cast in stone and much depended on market demand, but the bank was determined to open this year and was moving fast towards that objective.
"We will go as far as the market wants us to go. This bank's expertise is in the retail sector and corporate business, doing it not at the very top level of customers but adopting a wider approach, meaning that for us 'each customer is a different customer' and we treat all customers according to their specific needs.
"In Portugal we have some 30 competitors and we are now proud to be the smallest of the bigger banks and the biggest among the smaller banks. That is how the customers want us to be. They like this kind of approach because most of them are also medium sized and small."
The Lisbon-based Banif group has a 60 per cent holding in the new bank and the balance is held by Maltese investors. The bank has an authorised share capital of e50 million while the issued share is e25 million, "Naturally the bank can rely on the group in order to fund its activities" Mr Pinto said.
In the retail business sector the bank plans to offer all the basic banking products, including cards and internet banking, but Mr Pinto said the bank also saw good opportunities in other sectors, such as investment banking, trade finance and wealth management.
"Banif Group is divided into three main areas: Retail and commercial banking, investment banking and insurance, but we have experience in all financial areas, such as leasing and renting, so although we will start in retail banking we can develop quickly as the market requires. The studies and the planning have been done, but nothing beats speaking to the customer and having customer needs clearly pointed out."
He however, does not expect Banif to get involved in pensions immediately, although the possibility exists.
Mr Pinto said recruitment of staff was not proving to be a problem. "The first time we advertised we had more than 200 replies" he said, but there was slight difficulty in assimilating local banking positions with the posts of the Banif system, which are slightly different. "Still we are doing quite well" he said.
The bank expects to have up to 35 persons on its payroll this year, with this eventually growing to some 350 as the business develops.
Mr Pinto said that what would be different for his bank as compared to others was the way it approached the public.
"The bank tries to have a friendly approach to the customer, in a very proactive manner, with quick decisions being taken and implemented. While the other banks are benchmarks in Malta because of their experience and standing in the community, we too will employ quality, rigour and competence in our dealings with customers. Quality is something which we in the group strongly defend and which our customers can quickly get used to. Rigour is also very important, while competence is critical for decisions to be taken quickly and efficiently to benefit both the bank and its customers."
Mr Pinto said that Banif currently only had two Portuguese persons in Malta and it would be projecting itself as a Maltese bank. Banif Bank Malta is chaired by the former Ombudsman, Joe Sammut.
The Portuguese bank, granted a retail bank licence by the MFSA in March, intends to take on HSBC Bank Malta and Bank of Valletta by offering all services normally expected by retail banks in Malta but with a stronger accent on customer services.
"We have studied the Maltese banking sector for some years and clearly there is space for another retail bank. The feeling we get is that many people want something different, they want new partners and alternatives," Mr Pinto said at the bank's temporary offices at the Westin business centre.
The Lisbon-based Banif group has a 60 per cent holding in the new bank, with the balance held by Maltese investors.
Mr Pinto said the bank will be headquartered at Gzira. It has acquired a property which will become its first branch in St Julians and a decision will be taken soon on a property to host the second branch. The bank has so far not found the type of property it is seeking for a presence in Valletta.
"Banif Bank has a specific model for the layout of its branch offices, so it is not easy to find the space in Valletta but I expect we will be able to." The bank eventually plans to have branches in most localities.
Mr Pinto wasted no time when asked what the plans for his bank in Malta were.
"Well, basically we wish to be a major player in Malta" he said. "We are coming to Malta because we have studied the market and because we trust Malta. We will employ the experience we have gained in many countries, but especially in markets which are about the same size of Malta. We originated in Madeira, an island with approximately the same size and population as Malta and we are the biggest bank there.
Although we are present in mainland Portugal, Brazil, the United States, the UK, Canada, Spain, Venezuela, South Africa and Cap Verte, we have not forgotten our roots. We see logic in attempting to replicate in Malta our success in Madeira and the Azores.
"Malta and Madeira share tourism and financial services as the major contributors to GDP. We therefore feel we can contribute substantially towards ensuring that Malta and is businesses take full advantage of the new circumstances arising from EU accession because we have experienced it before."
He said the bank's growth timetable was not cast in stone and much depended on market demand, but the bank was determined to open this year and was moving fast towards that objective.
"We will go as far as the market wants us to go. This bank's expertise is in the retail sector and corporate business, doing it not at the very top level of customers but adopting a wider approach, meaning that for us 'each customer is a different customer' and we treat all customers according to their specific needs.
"In Portugal we have some 30 competitors and we are now proud to be the smallest of the bigger banks and the biggest among the smaller banks. That is how the customers want us to be. They like this kind of approach because most of them are also medium sized and small."
The Lisbon-based Banif group has a 60 per cent holding in the new bank and the balance is held by Maltese investors. The bank has an authorised share capital of e50 million while the issued share is e25 million, "Naturally the bank can rely on the group in order to fund its activities" Mr Pinto said.
In the retail business sector the bank plans to offer all the basic banking products, including cards and internet banking, but Mr Pinto said the bank also saw good opportunities in other sectors, such as investment banking, trade finance and wealth management.
"Banif Group is divided into three main areas: Retail and commercial banking, investment banking and insurance, but we have experience in all financial areas, such as leasing and renting, so although we will start in retail banking we can develop quickly as the market requires. The studies and the planning have been done, but nothing beats speaking to the customer and having customer needs clearly pointed out."
He however, does not expect Banif to get involved in pensions immediately, although the possibility exists.
Mr Pinto said recruitment of staff was not proving to be a problem. "The first time we advertised we had more than 200 replies" he said, but there was slight difficulty in assimilating local banking positions with the posts of the Banif system, which are slightly different. "Still we are doing quite well" he said.
The bank expects to have up to 35 persons on its payroll this year, with this eventually growing to some 350 as the business develops.
Mr Pinto said that what would be different for his bank as compared to others was the way it approached the public.
"The bank tries to have a friendly approach to the customer, in a very proactive manner, with quick decisions being taken and implemented. While the other banks are benchmarks in Malta because of their experience and standing in the community, we too will employ quality, rigour and competence in our dealings with customers. Quality is something which we in the group strongly defend and which our customers can quickly get used to. Rigour is also very important, while competence is critical for decisions to be taken quickly and efficiently to benefit both the bank and its customers."
Mr Pinto said that Banif currently only had two Portuguese persons in Malta and it would be projecting itself as a Maltese bank. Banif Bank Malta is chaired by the former Ombudsman, Joe Sammut.