The DFCC Group has the honour of being selected as consultants in the transformation of the Home Finance Company (HFC) of Fiji, a state-owned financial institution with a limited offering of products and services.
DFCC together with its subsidiaries Vardhana Bank and Synapsys has entered into a management contract with HFC, and will provide technical and advisory services in the areas of IT, Treasury and Trade Finance in order to launch its commercial banking operation by January 2014. This is a historic moment for HFC and the country of Fiji as it would be the country’s only local bank.
Initially incorporated in 1962, HFC was a licensed credit institution providing financing for housing, machinery and vehicles. Over the last five decades, HFC has grown into a well-established local financier now diversifying into offering commercial and consumer loans, asset financing and export financing.
DFCC Bank CEO Arjun Fernando (left) and HFC CEO Isikeli Tikoduadua exchange the agreement. Raj Sharma, General Manager Risk & Governance, HFC and Dinesh Fernandopulle, CEO, Synapsis (100% owned subsidiary of DFCC) are also present.
DFCC Bank CEO Arjun Fernando, who has also been appointed to the Board of HFC stated: “DFCC Group is honoured to guide HFC in achieving this important milestone. Having the full range of financial services expertise, complemented by a 100% owned information and communication technology subsidiary in Synapsis, enabled DFCC Group to win the mandate over other financial institutions in Sri Lanka and abroad.
“DFCC Bank is a successful development finance institution that has transformed into a multi-product and robust financial institution, and today together with our commercial banking subsidiary – Vardhana Bank offers a full range of business and personal banking services. We are very eager to utilise our learning and expertise that we have gained over nearly 60 years in this business, to guide the Home Finance Company in their transition.”
He further stated that this mandate has opened doors for the group to other opportunities in the Pacific Region.
Also speaking on this partnership HFC Chairman Tom Ricketts noted: “As per HFC’s approval we needed to form a partnership with a well-established international bank. After due diligence and clearance by the Reserve Bank of Fiji we formed a management partnership with DFCC Bank of Sri Lanka which is Sri Lanka’s first specialised development bank.
“They also have a subsidiary commercial arm, DFCC Vardhana Bank and operate through 135 branches and over 1300 employees. We expect to benefit from the competencies and capabilities in the areas where there are gaps especially in information technology and correspondent banking.”