The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A major Bahamian international bank yesterday confirmed it had terminated 15 staff as part of a restructuring focused on automation and financial technology (Fintech).

Deltec International Group, in a statement responding to Tribune Business inquiries, said the lay-offs had impacted less than ten percent of its workforce and that 150 persons remained with the western New Providence-based financial institution.

Revealing that its technology team has more than quadrupled, increasing by 350 percent, Deltec said the lay-offs were triggered by its shift to a new business model that relies heavily on automation to drive increased efficiencies as well as the fall-out from the COVID-19 pandemic.

“With the investment in technology, there have been continuous shifts in how our resources are allocated,” Deltec said. “Quite notably, our technology team has grown by 350 percent. Additionally, with added automation, the bank has reduced a number of manual processes and restructured to facilitate this change.

“This, coupled with the COVID-19 pandemic re-shaping how we conduct ‘business as usual’, has resulted in the difficult decision to release 15 staff members. With this difficult decision, and because of the difficult situation that faces our country in view of COVID-19, the bank has provided enhanced severance payments with extended medical insurance coverage to make this transition as smooth as possible and to help affected employees in as much as possible throughout the crisis.

“We recognise the impact of these decisions on those affected, and do not take them lightly. It is even more difficult for all of us because we have tremendous respect for the persons impacted by the recent reduction in staff.”

Tribune Business sources suggested that Deltec had been over-staffed as a result of acquisitions it had made over the last several years, adding that the lay-offs came as no surprise especially given its emphasis on technology as a core business driver.

“Over the last few years, the main focus for Deltec International Group has been to ensure that we have a business model that is sustainable in an ever-changing financial environment,” the bank added yesterday.

“While the financial services sector has been faced with major disruption over the years due to a changing customer base, emerging digital technologies and competition from non-traditional financial service providers, our strategy has positioned us for future success and sustainability.

“One of the biggest shifts is adopting technology to better serve private banking, corporate banking and wealth management clients. Deltec has, and continues investing, in technology in an effort to embrace fintech in alignment with its worldwide competitors,” it continued.

“This investment started with the automation of controls within the onboarding and screening process to enhance our risk management framework, and the introduction of the bank’s enhanced e- banking platform with automated internal processes for increased efficiency and effectiveness, and improvements in client experience.”