THROUGH a strategic partnership with the Fijian Government and the Fiji Trade Commission – North America, locally-owned financial institution HFC Bank has initiated a program – said to be the first of its kind for commercial banks in Fiji – that allows Fijians in the United States of America (USA) with the flexibility to open accounts here at home.
Deputy Prime Minister and Minister for Trade, Co-operatives, Micro, Small and Medium Enterprises and Communication Manoa Kamikamica announced this innovative banking solution last week, targeted at the Fijian diaspora in the United States.
This initiative, The Fiji Times has established stemmed from concerns raised by the Fijian diaspora during the recent visit to the US by a delegation from the Ministry of Trade.
The initiative also reflects the Government and HFC Bank’s “steadfast commitment” to making banking accessible, convenient and reliable for Fijians worldwide.
“In response to the growing needs of the Fijian diaspora in the United States, HFC Bank – the only Fijian bank – is proud to introduce an innovative banking solution designed to simplify connections for Fijians living overseas with their homeland,” stated the joint statement from the ministry and HFC Bank.
“Recognising the challenges faced by the Fijian diaspora in opening bank accounts in Fiji, HFC Bank proudly introduces a seamless and secure solution,” it said.
THE PROCESS
HFC Bank chief executive officer Rakesh Ram told The Fiji Times that the Fiji Trade Commission in North America would carry out face-to-face verification on behalf of the financial institution as part of the bank’s Know Your Customer (KYC) and Anti-Money Laundering (AML) checks.
He said the discretion to open those accounts remained with HFC Bank.
He said this program would now enable Fijians living abroad to open and or operate bank accounts in Fiji.
“Most would really just want to send money back home for their savings,” Mr Ram said.
“HFC Bank’s key focus is to onboard new customers and to explore other profitable investment opportunities with Fijian diaspora.”
He also confirmed that normal saving accounts fees would apply — that was $2 monthly account maintenance fees and $10 minimum operating balance.
A MILESTONE FOR FIJIAN DIASPORA
Over past years, the Fijian diaspora in the US had been instrumental in bolstering the local economy by remitting millions of the greenback back home to their families and communities each year.
However, their concern voiced to the recent government delegation from the Trade Ministry during the US Business Mission was the challenges faced when trying to open a Fijian bank account from abroad.
In response, HFC Bank implemented a process enabling Fijians residing in the USA to submit all required documentation through the Fiji Trade Commission – North America office in California.
“The HFC Bank is committed to ensuring that these accounts are established securely, facilitating hassle-free funds transfers directly into their bank accounts in Fiji,” Mr Ram said.
Mr Kamikamica, who led the business mission to the US, commended the financial institution in introducing this initiative in the market.
“This achievement is a testament to the dynamic and forward-thinking approach that HFC Bank embodies,” the deputy PM said.
“By launching this new solution, they not only enhance their offerings but also strengthen their commitment to serving the local community with tailored financial solutions.
“It’s initiatives like these that drive economic growth and support the prosperity of our small and medium enterprises.
“I commend HFC Bank for their dedication to innovation and their role in fostering a vibrant financial sector that benefits all Fijians.”
Mr Kamikamica said the Government hoped that the financial institution could roll out the same initiative to other diaspora destinations.
Fiji Trade Commissioner to North America Alika Cooper also acknowledged the bank’s genuine support to the diaspora.
He said the Trade Commission office was grateful for the support of HFC Bank as it worked collectively to support the Fiji diaspora in the North American region.
“Their dedication to offering customised financial solutions that address the specific needs of Fijians living abroad is truly commendable, and I would like to acknowledge HFC Bank’s chairman
Mukhtar Ali and management team for their support,” Mr Cooper said in the joint statement.
“This partnership not only enhances economic connections but also nurtures a sense of belonging and support within the Fijian diaspora and fostering positive change,” he said.
REMITTANCES
Fiji’s personal remittances have seen significant growth in recent years and fast becoming a vital component of the island nation’s economy.
In 2023, remittances reached a record high of $1.25billion, approximately $US504million, marking a 20.4 percent increase from the previous year.
He said over the past decade, remittances had averaged around $433.2m annually, accounting for approximately 4.7 percent of Fiji’s gross domestic product (GDP).
He said notably, more than 60 percent of those funds had originated from Australia, New Zealand and the United States.
“While specific data detailing the exact proportion of remittances from the United States is limited, it’s evident that the US plays a significant role in contributing to Fiji’s remittance inflows,” Mr Ram said in response to questions from this newspaper.
“These funds are crucial for bolstering domestic consumption and supporting low and middle-income households, especially during post-COVID-19 recovery phases.”
THE FUTURE
HFC Bank operates under the Reserve Bank of Fiji (RBF) regulations similar to all other commercial banks in the country, and is fully compliant with the regulatory framework.
HFC Bank also has a strong balance sheet and proven profitable performance with total assets in excess of $2b, he said.
He said looking to the future, the bank was committed to providing banking that was simple, secure and reliable.
“As this initiative launches in the United States, HFC Bank intends to offer similar solutions to Fijians residing in various regions around the globe.
“By consistently innovating and adapting to the needs of its customers, HFC Bank is positioning itself as a leader in banking services for Fijians worldwide.”
HFC Bank is 75 percent-owned by the Fiji National Provident Fund (FNPF) and 25 percent owned by Unit Trust of Fiji (UTOF).
NOTE: This article was first published in the print edition of the Fiji Times dated FEBRUARY 21, 2025.
