FirstCaribbean woos retail clients with 10-minute loan

Regional bank CIBC FirstCaribbean is going after new borrowers through a digital loan store, a processing channel that allows prospective clients to access funds in as little as ten minutes, the bank says.

The web-based application has already had a soft launch in Barbados, with the next stop being Jamaica, then The Bahamas.

The concept of digital loan application is not new to Jamaica, but FirstCaribbean’s 10-minute turnaround time on loans would set a new bar.

The regional bank is rolling out the digital loan store at a time when the loan market is back on the upswing.

FirstCaribbean itself reported US$809 million in new loans last year, pushing its portfolio up by more than four per cent to US$3.9 billion.

The financial institution is ready to surpass that growth but by how much specifically, the bank did not disclose. FirstCaribbean Managing Director of Retail and Business Banking Mark St Hill, instead, reasoned that the digitisation efforts, including the newest initiative — the loan store — are heavily directed at creating numerous channels for clients to conduct business transactions with FirstCaribbean and also aimed at improving client experience.

“We are increasing our capacity to be more responsive to our clients and with this additional channel, we expect to see growth in our loan portfolios. Most important for us, beyond the portfolio growth, is the client experience we offer. By being the community bank that provides the best options between a banking-as-usual or digital banking, we should continue to see steady returns on these investments,” St Hill told the Financial Gleaner.

FirstCaribbean’s corporate and investment banking services division serves large regional corporate and sovereign clients, as well as mid-size corporations in a variety of industries including utilities, hospitality, infrastructure, retail and distribution, real estate, oil and gas. Today, FirstCaribbean has some 10,000 corporate clients, of which approximately 1,500 are borrowing clients.

That business segment takes up the lion’s share of its loan portfolio, followed by mortgage disbursements. Some 10 per cent of FirstCaribbean’s loan disbursement goes towards funding personal interest, and it’s the market segment that FirstCaribbean is trying to grow through its new quick-cash loan store.

How much FirstCaribbean is willing to lend each retail customer will be determined upon entry to markets, St Hill said, and will also be dependent on the products.

“Limits determined for unsecured loans will be linked to the client’s capacity to repay and financial information held and auto loan limits will ensure that clients are able to obtain decisions for motor vehicles at a level which will serve most consumers. We will revisit the limits as we learn and continue to adapt to market needs and consumer response,” the banker said.

For now, consumers will be directed to a website to access the suite of services FirstCaribbean offers through its loan store, but only after they have received an invitation from CIBC FirstCaribbean.

So far, the regional bank has sent over 2,500 potential customers in Barbados invitations to its loan store and will, in short order, release another 1,000 invitations. Over time, clients will be able to access the loan store directly from the bank’s mobile app.

“As we offer more lending options via this digital lending channel, these will be added to the store, just the same way products are added to the shelf of your favourite supermarket,” St Hill said.

CIBC FirstCaribbean offers a full range of market-leading financial services through its corporate and investment banking, retail and business banking and wealth management segments. The bank operates 64 branches across 16 Caribbean countries.

karena.bennett@gleanerjm.com