Brunei - Reactive, pro-active Baiduri overcomes 'more difficult' 2011

BEING reactive and pro-active has helped Baiduri Bank Group overcome a difficult and challenging 2010, and an "even more difficult" 2011, its Chief Executive Officer said.

Pierre Imhof told The Brunei Times at Baiduri head office in Kiulap yesterday that with the regulatory changes announced in 2010 (such as credit and loan reforms), it takes time to be put in place and there is a certain delay on its effect.

"In 2011, from January 1 to December 31, we have felt the full effect of all these which has impacted our activity," he said.

The year 2010 was already a difficult time, Imhof said, but 2011 was "even more difficult" because Brunei still retains a competitive landscape in retail banking and the full effects of the changes did not help.

"Of course, these effect us, but we have found ways to find new areas of developments so as not to limit ourselves," he said.

Giving an example, he said that Baiduri Bank was the "first by far" to distribute "internationally recognised debit cards".

"We have been doing that which no bank had been doing in Brunei for years and years, so we were able to take advantage as we were already on this market to grow our card business in the country in spite of restrictions put in place by new regulations," said Imhof.

Deputy General Manager Retail Banking and Branch Network Tii Eng Hui said that with debit cards, they have seen a double digit growth over 2011. "Spending by debit card has also been more than credit. And because customers don't need their salary assigned to us to get a debit card, we have issued a lot more cards this year," said Tii.

Imhof added: "We definitely have the most rewarding Debit Card in Brunei."

The CEO also said that the card business corresponds to the needs of clients' immediate future. "We will continue to invest as we have been doing since we have been, for the last 14 years, in the card operations, debit or credit, as we consider it a very safe, easy and user friendly means of payment for Bruneians," he said.

Tii emphasised that their card system is fully in Brunei, which includes the internet payment gateway, that is constantly creating job opportunities for Bruneians.

"Also, we have introduced the China Union Pay Debit Card, which is popular with frequent travellers," said Tii.

He claims that as Baiduri is opening "many" payroll accounts every month, they are getting more debit sign-up, which isn't limited to new customers.

Other "new developments" that Baiduri Bank is working on, according to Imhof, is to take note that Brunei is a country where there is a regular, steady and accumulation of wealth.

"On one side, people are talking about Bruneians who are often in debt, but we must also acknowledge that there is an accumulation of wealth among Bruneians, and we want to offer these Bruneians a wider range of services and investments. So that is one of our targets," said Imhof.

The CEO said that although 2011 has been difficult, he is confident they will achieve satisfactory performances.

"I don't know whether or not it will be slightly better, equal or lower than last year, but definitely, there will be satisfactory performance in a very competitive, challenging and difficult environment," he said.

Imhof believes that their reactive and pro-active actions is what led to the group winning three accolades this year: Bank of the Year for Brunei awarded by The Banker; Bank of the Year 2011 from World Finance magazine; and Company of the Decade Brunei, also from World Finance magazine. "We have received the award from The Banker eight times in the past 10 years, which is based on a large extent, on our financial performance."

He said that the criteria to be granted the award was based on figures such as gross in business, increase in number of loans and deposits, profitability, return on equity and assets, and so on.

As for the World Finance award, the CEO said that they were more focused on a number of aspects, such as: variety of products and services offered, which he claims Baiduri is in well-positioned with offerings of retail, corporate, and consumer finance through hire purchase.

"World Finance also looks at our innovation and flexibility. Many innovations have been introduced since we started operations 17 years ago, which is how we have tried to position ourselves," he said, adding that as a group, they have achieved a few "firsts" in Brunei.

Imhof further said that getting an award may seem easy, but noted that the two organisations attributing the awards are very "well-known" and "serious". "Institutions competing for them are reputable and competitive companies. For example with the World Finance award, Australia's winner was ANZ, whilst in Malaysia it was Public Bank," he said.

Same goes to The Banker, where there were about 100 countries representing various banks, and winners were well-known and reputed institutions.

The Brunei Times

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