Bank of Baroda in Fiji is actively seeking to digitalise most of its products, hoping to better its market share in the face of intense competition from other banks.

At the bank’s 111th foundation day celebration on Friday, Baroda’s chief executive Fiji operations Sudhansu Khamari said the bank was planning a range of new initiatives to serve the local market.

Baroda began operations in Fiji in 1961, as the country approached independence.

The nation at the time was seeing increased economic activity, underpinned by a strong sugar industry.

Baroda saw an opportunity in Fiji’s agricultural sector, especially with the formation of multiple farmers’ unions and co-operatives.

Some fifty-seven years later, the bank has had to adjust its approach in an era of digitalisation and rapidly changing consumer trends.

“The biggest thing we have achieved here is the customers’ trust,” Mr Khamari said, estimating that the bank’s customer base has reached 100,000.

“We have always kept our customers’ needs ahead of our business goals; because they are the people with whose support we are here today. We are marching ahead in Fiji and our biggest assets are our customers.”

The Baroda brand, with an increasing number of Automated Teller Machines (ATMs) and branches, is quietly growing.

While Mr Khamari said Fiji’s “static” population growth is a challenge for Baroda, he believes the market is still ripe with opportunities.

“Micro-finance is one aspect that our bank is putting a focus on, especially for Micro, Small and Medium Enterprises,” he said.

In an interview after Friday’s function at its main Suva branch, Mr Khamari revealed some of the bank’s future plans.

He also gave his take on whether an inquiry similar to the one that unearthed potential fraudulent activities by banks in Australia was needed in Fiji.

Read the full interview below:

What are your immediate and future goals in the Fijian market?

“Our goals are to increase our market share in Fiji.

“Whatever trust we have gained from the customers, we want to expand on that and also our business.

“We want to bring more and more digital products, since the digital era is now here.

“Last year, we have introduced rapid funds to India.

“Customers have to come to the branch to transfer funds to India rapidly and there are no charges for that.

“That is one product that no other bank in Fiji is giving its customers, in terms of remitting funds to India.

“Now we are bringing it to other areas through ATMs and internet banking; soon people will be able to remit funds to India hassle free.

“We are continuously trying to improve our digital products.

“So whatever products are already available at the bank, we want to modify that according to the needs of the local market.”

What are your short and long-term investment plans in Fiji?

“It has been a continuous process of investment in Fiji.

“We are having more ATMs and are trying to put more branches.

“Also, in employment, we are trying to create more jobs, especially for locals.

“Bank of Baroda is trying to invest more in the people and the processes.

“When we talk about processes, it includes digitalisation.

“At the same time, we want to put our focus on people.

“We want to nurture local talents and recruit them.

“Also, with our existing staff, we want to invest in them, too.”

What are your major challenges in the Fijian market?

“The population in Fiji has been constant. So when population is not growing, the market is the same.

“The new generation also who are very educated are migrating to other nations.

“Because of the static population, growing the business and the market, that is the biggest challenge.

“We have a plan to tackle that and definitely we will be increasing our business and market share.”

Which area in the Fijian market do you think has the greatest potential for growth?

“We see a lot of potential for growth in the real-estate and housing sector.

“The housing sector is growing very fast.

“People are more and more interested to build their own houses.

“Also, in rural areas, a lot of people have still shying away from banks and banking activities.

“It is something the Reserve Bank of Fiji, who is constantly guiding banks in Fiji, pursues actively and Bank of Baroda believes more and more people should come to banks.

“We want to target those who are deprived of banking activity.

“They should also know what banking is and how it can benefit from banking services.

“Micro finance is one aspect that our bank is putting focus on.

“Suppose, some Micro, Small and Medium Enterprise (MSME) is there, who do not have the capital to invest and grow, Bank of Baroda wants to finance them.

“We think these are the areas that have a lot of prospects.

“Agriculture is also a sector we are focusing on.

“We are already providing financing for equipment and it is a sector we want to continue to support.”

How has your revenue and profitability trends been in Fiji?

“Those have been steady. Both bad and good times are always there but we are very happy with out performance in Fiji.

“We are earning continuous profits.

“Sometimes it can get a little bit slow but ultimately we are earning profits and we are very happy.

“This year we are hopeful that our business and profits will grow even further.

How are you dealing with the tough competition in Fiji’s banking sector?

When completion is there, it will bring out the best in you. That is why we welcome the competition. The more the competition the more benefits then for the customers and the market, so we welcome it. As a bank, you have to understand the market; you have to understand the needs of the people. We are focusing on our existing products, these are already well-accepted by the people. We also continuously develop our products to keep with any trend in the market – digitalisation for example.

We are trying to attract more and more customers with our digital products, especially the young generation. We think we can capture the market this way and expand the market. We are putting all our efforts to better our market position.

What is your view on the banking crises in Australia and would you welcome a similar inquiry in Fiji?

I am not familiar with particular details about the issue. But the thing is that, whenever there is an product or service, banks will require some service charges. But it is unethical to charge very heavy amounts to the customer. It should be minimal and at the same time customers should be satisfied and convinced with the charges. When customers find it okay, it’s a win-win situation for the custom.

In Fiji, the Reserve Bank of Fiji is very proactive in the guidance it provides all the banks. They are doing their job well. Their supervision, counselling and monitoring is very robust here and we thank them for their work. With their guidance, I think Fiji’s system is very robust and I have my full confidence in them.