By Lavern Clarke, Staff ReporterFIRST GLOBAL Bank is in an expansion mode, but is approaching the growth of its network a little differently than the largest four of the five competitors whose branches span the island.
The plan largely includes a number of satellite banking operations, strategically incorporated within existing Grace, Kennedy & Company related businesses, to which the bank itself is aligned as a subsidiary under the conglomerate's financial division.
Currently, as the baby of the commercial banks, First Global has one branch in New Kingston and a drive through full-service teller window, which now processes more than 200 customers on an average Friday, says deputy chairman Don Wehby.
But by the end of June, pending approval from the Bank of Jamaica, it will also have a presence in Montego Bay, where it is setting up branch number two.
BRANDS NUMBER TWO
Under a deal with Citibank NA, First Global will assume control of Citibank's total retail business which the North American bank is giving up to refocus fully on its corporate clientele including its branch operation in MoBay.
Mr. Wehby confirmed that his bank plans to retain all the staff, and would be making them offers, which would be left up to them to accept or refuse.
Stephen Dear, who ran the MoBay branch under Citibank, will continue to manage it, Wehby said in an interview Wednesday, noting that his company has already formalised that aspect of the arrangements. Stephen is brother to Margaritaville co-owner Ian Dear and the son of Winston Dear, commissioned land surveyor and businessman and current president of the Montego Bay Chamber of Commerce and Industry.
Additionally, Dorothy Parkins, another former Citibank employee who worked closely with country manager Peter Moses, is now a member of Wehby's team, brought on to fuel the expansion plans and assigned to the Banking Division.
"The plan for MoBay is to replicate the success we have had with First Global in Kingston where we have been stressing personal banking," said the deputy chairman. "For our bank, you don't join a line, you take a seat." The product will also have an outreach component, he said, backed by more aggressive marketing to build share.
Measured on total assets, FGB is the smallest of the six commercial banks with $6.5 billion, while Citibank has the number five position with $8.8 billion, based on unaudited figures reported by the Bank of Jamaica to December 2002.
The deal between the banks gives First Global immediate access to several accounts, and while the final decision rests with individual clients on whether they want to do business with First Global, Wehby said the bank expects to retain 75 per cent of Citibank's retail customer base, based on responses from account holders. "The feedback is very encouraging," he told the Financial Gleaner.
The Montego Bay accounts will remain there, while Citibank's retail customers in New Kingston will be transferred to FGB at its Life of Jamaica Centre location. "We are now negotiating with LOJ Property Management for additional space for First Global," said Wehby.
The MoBay set up has set back by several months, the bank's other expansion plans to establish "in store" banking centres within Grace, Kennedy related operations to later this year or early 2004. Meantime, the market research continues.
'In store' banking is not now offered by any other commercial bank, but neither is First Global a local pioneer. The service, which is popular abroad in places like Canada, was first tried by Island Victoria Bank, he said.
Wehby, who is also Grace's chief financial officer, said the satellite operations will be piloted at the conglomerate's grocery chain, starting at Hi-Lo Food Stores in Manor Park with a service branch, followed by roll-outs to stores in Barbican and Liguanea if the first set up works.
BANKING PRODUCT
He declined to divulge the total sum being invested in the growth push, but noted that more than US$500,000 (about J$29 million) is being spent to develop FGB's Internet banking product, which the company had signalled earlier this year it was embarking on as a value-added service for its customers. "We are far advanced in testing," said Wehby. "We've gone to the best to develop the web site and make it very interactive."
Product wise, the bank is also in discussions with another bank to offer Visa credit card service. It also has a 'home mortgage made easy' plan, where a local investor wanting to buy property abroad, for example in Florida, can acquire mortgage financing through First Global, which has formed an alliance with an overseas banker that offers mortgages.
