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The Walk To Cartago is
Officially On
Second Man In A Week To
Be Killed By Lightning
Costa Rica's Population
Growth Rate Slow
State Banks May Be
Forced Create Alliances To Face
Competition From International Banks |
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State Banks May Be
Forced Create Alliances
To Face Competition From
International Banks
Although the state banks
discard any alliance,
the arrival of
international banks in
Costa Rica will mean
that the state banks
must think in creating
strategic alliances to
compete with the giants
like the arrival of HSBC
and the expantion of
Scotiabank.
The arrival of the big
international banks in
Costa Rica will mean
more competition in the
banking sector, as the
internationals bring
with them better
services and products.
The state banks are
aware that the
internationals are here
to compete and say they
are ready.
The lowering of costs,
opening more branches,
setting up regional
headquarters and
modernizing their
technologies are some of
the strategies being
employed by the state
banks to compete.
The general manager of
the Banco de Costa Rica
(BCR), Carlos Fernández,
said they are evaluating
the regionilzation of
the Banco Internacional
de Costa Rica (Bicsa) to
offer better services,
especially to business
clients.
"The BCR cannot by law
buy other banks, if we
could we would", said
Fernández.
To compete, the BCR this
year alone will open 35
new branches and with
more flexible hours. A
number of BCR branches
are now open on Sundays
and extended evening
hours at some locations.
Fernández said that the
state banks could with
time lose between 60% of
its credit portfolio and
up to 70% of short term
deposits, which is why
it is important to be
ready.
For his part, the
president of the Banco
Nacional, William
Hayden, feels confident
that the participation
of state banks will
remain inttact, for he
considers that the
quality and cost of
services of the state
banks will be difficult
to match.
"The Banco Nacional is
in a position to compete
because it has been
preparing for some
years", said Hayden.
By the end of this year,
the Nacional expects to
have 160 branches open
in all parts of the
country, in addition to
handling some 4.5
million internet
transactions annually.
Hayden says the Banco
Nacional has 90 years
experience in the local
market and that image
and trust offered is a
key factor.
The other state banks,
Bancrédito and Banco
Popular, also say they
are ready for the
competition. Guillermo
Quesada, general manage
of Bancrédito, said that
the state banks have
shown that they can
compete when several
years ago the commercial
battle with the private
banks began.
According to Quesada,
the international banks
could be an incentive
for the state banks to
form an alliance, which
will benefit clients. |
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Banco Banex
became HSBC this week and with the
changeover of Interfin by Scotiabank
almost complete, state banks face
increased competition. |
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