Nov 2012 Financial News

Scotiabank awaits legislation to roll with $100m IFC investment

Nov 01, 2012

Scotiabank is “ready to roll” with the outfitting and staffing of a regional back office in T&T within the framework of the T&T International Financial Centre, but is awaiting the passage of legislation to make it possible, said new Scotiabank managing director Anya Schnoor.
Other countries in the region are also interested in hosting Scotiabank’s regional back office, she said, so if T&T does not get the requisite legislation passed in 2013, this country could lose the business.

“We’re very excited about it. (Former managing director) Richard (Young) really has worked hard to lobby the Government and also Scotiabank to look at T&T as a hub for the region. What we want to do there is really to centralise a lot of our back office processing. Scotiabank is in 17 islands across the Caribbean, and each island may have one or two people dedicated to a number of different functions. Obviously, centralisation makes it more efficient when you bring people together,” said Schnoor to the Business Guardian on October 19.

The new MD, who will officially assume office today, said T&T, because of its location, education level, and people, is “a natural place for us to put a hub.” She said the back office “would allow us (in the Caribbean) to centralise services from a number of operations throughout the Eastern Caribbean and Guyana and other Caribbean countries.”

She said, “working with the Government, we’ve signed this memorandum of nderstanding, and what it really will do is provide incentives to allow us to have the hub here, and with the hub coming into Trinidad, what we’ve said to the Government is that at minimum, we can create 200 new jobs over the next three to five years.”

She said as the hub grows and is successful, “This can lead to other things. Obviously, when you look at the cost of processing in say, Canada or North America, or other countries” where Scotiabank has operations, “it can lead to also looking at being competitive, and saying, ‘Well, why do you back office in Toronto, why not do it here in Trinidad?’

“So I think this is a great first step, if we can get the actual legislation done, and in the period of time, because the one thing I must say is that there are other countries in the Caribbean obviously competing, who want this business. I mean, obviously Mexico, the Dominican Republic, so there are lots of countries that would like to do it and they are offering also incentives, so it’s very important that we get it done as quickly as possible so that we can cement the business here and get it going.”

IFC legislation
Asked if the keep back is the legislation, she said, “Yes, because what we signed really was an MoU, but it’s really in the hands of the Government to get the legislation done, so that we can get this project off the ground, and it would be really exciting. “Certainly, for Scotiabank, it would be the first of its kind here, and it really would lead to perhaps other companies, other entities looking at Trinidad to perhaps do something similar. It could be the start of a whole new industry for Trinidad, and when you look at the education, you know, the graduates you have coming out of University T&T, University of West Indies, they’re obviously looking for opportunities and this could be a great starting point for them in their careers.”

Asked by when she would like to see everything in place, she said, “We’re waiting. We’re ready to roll. This is something that we really want to get going as quickly as possible. We really had it slated for (our) 2013 plan, but a lot depends on if we can get the legislation done.” Schnoor said: “It’s something that we want to do next year for sure.” The new MD said the back office “will service a number of countries in the Caribbean region.”

Asked how many, she said it all depends on “how they get rolled in” because “it’s not just a matter of rolling them in, you have to make sure you work out with each country how the processing works, the technology, that sort of thing, but certainly, we’re already doing processing for ten countries in certain areas now, so I would imagine that the rest of their stuff could come in here.” She said Scotiabank T&T is already doing processing for those countries “in certain things, like collections, so we would now be able to roll in other things like financial accounting, loan adjudication, different things.”

Chaguanas, site of the new hub
The new hub will be in Chaguanas, but in a building separate from Scotiabank’s collection centre, which is also in the central borough. She said, “We’ve identified an area that we like. There’s going to be a building for this purpose.” Schnoor said the existing collection centre in Chaguanas “can’t hold the size of operation that we’re talking about, so we’ve identified an area, and we’re ready to outfit it. It think a building exists on it, it’s kind of for us to outfit the building.”

On the kind of jobs that will become available, Schnoor said, “They’re various levels. You have supervisers. You have teams, so it’s going to be various level jobs, and, of course, you know, the good thing about when you have an operation like that people can move up, so even if you start at a clerical level, you naturally move up in the organisation as there’s turnover, as people move onto other jobs, as they move out and go into different areas, so it’s a great place for people to come in, and grow with the organisation, and when you’re working for an international organisation, you don’t have to limit yourself to Trinidad.

“People have moved all around. Certainly, when I was in Toronto, there were a number of Trinis on assignment there, working there, or working even in other countries, so that’s the great thing about being in a global bank. Depending on how mobile you are, it’s up to you, you can determine where you want your career to go. I’m a prime example of that.”

Asked if she started off as a teller, she said, “Well, in my early life, I started off answering the phone. Everybody starts somewhere, you know.” Schnoor said she is “really excited to be here.” She said she has been to T&T many times before “but more on a personal level, so it’s really a great opportunity for me to get to know the people here. We have a great organisation here. We’ve been here close to 60 years. I’ve been really excited to listen to our customers as I’ve gone around and met them, and listen to what we have done for them: help them to start their business; help them to grow.

“It’s an organisation that has obviously played an important role in T&T’s development. So we’re very committed to the region as an entity, and very committed to the people of Trinidad. When you look at the fact that we’ve been in the region for over 120 years, and consistently so; we haven’t come and gone with the blowing of the winds; we have stayed here through think and thin, and that’s an important trait in your financial provider. You want somebody who’s going to be here in good times and in bad.”


Source:
Aleem Khan
Trinidad Guardian
Thursday November 1, 2012

http://www.guardian.co.tt/business-guardian/2012-10-31/scotiabank-awaits-legislation-roll-100m-ifc%E2%80%88investment