To mark its 21st anniversary, Demerara Bank Limited (DBL) yesterday opened its new head office and corporate banking branch at Camp Street, North Cummingsburg.
The nearly 25,000 square feet facility, which is the bank’s seventh branch, cost $800M.
Speaking at the opening, DBL Chief Executive Officer Pravinchandra Dave explained that the company’s previous head office, also located on Camp Street, was not very convenient for corporate borrowers.
“There were obvious difficulties in parking; obvious difficulties because of traffic congestion. The location was small, people found it a little difficult to deposit their money, to take out their money and there were certain security issues also,” Dave explained.
As a result of these difficulties, the board of directors decided to create an exclusive location for corporate customers who provide at least 80% of the bank’s interest income.
The building, located at 214 Camp Street, has been specially designed with the needs of the corporate customer in mind. It has also been designed to be energy efficient.
According to Dave, all glass used in the construction is low energy consumption glass, which is expected to save 30% of energy costs, while the building is partially-powered by a solar panel system which will greatly reduce the cost of electricity.
Speaking of future plans, Dave said it is the intention of the bank to open branches in rural and other areas which have no access to banking services.
He also said that DBL has secured the services of international IT company Tata Consultancy Services Limited to update its banking software. After this update, it is expected that the company’s online services will be so user friendly that customers will be able to conduct all their business from their office or home.
Meanwhile, the former head office at Camp and South Road will become a hub for customers to access housing and vehicular loans.
Noting that Guyana has a 179-year history of banking, President David Granger explained that DBL, which is the first locally created bank, was the product of the liberalisation of the financial sector which came as a result of the 1989 Economic Recovery Programme.
The president congratulated the bank on its efforts to embrace the creation of a green economy.
“I am very happy to hear that the bank is charting a course to develop and exploit green energy right here in Georgetown,” the President said as he thanked the bank for once again leading the way.
He further encouraged the bank to extend its reach to communities and groups which now have no access to formal banking services.
“Vast areas of our country have no access to banking services. There are no commercial banks, for example, in Mabaruma and Mahdia, the administrative centres of the Barima-Waini and Potaro-Siparuni regions, respectively, two major gold and diamond-mining zones. They are soon to become towns but have no banks,” the president said.
He also noted that vulnerable groups, particularly in rural and hinterland communities, are still excluded from basic financial services.
“Small entrepreneurs are excluded from accessing credit because they lack the necessary capital and assets for collateral. A flexible financial system should be able to connect a larger number of citizens to banks,” he advised.
Granger said according to the IMF, access to savings accounts has increased savings, investment and consumption, while access to credit has increased entrepreneurship and reduced poverty. As a result, he noted that there is a special responsibility of those involved in financial intermediation to ensure the greatest access to banking services for the greatest number, thus commercial banks must become more inclusive if they are to contribute to these economic and social goals.
“The establishment of branches by commercial banks in unserved areas will allow for wider geographic coverage and greater access to services. It will bring banking to the people, thus the establishment of this new branch and Corporate Office of Demerara Bank is a step in the right direction; one which sends a strong message to investors and the population. It is an expression of confidence in the economic prospects of Guyana,” Granger added.
