Bank of Baroda’s Closure Sparks Rural Banking Concerns in Fiji

The recent decision to close two Bank of Baroda branches in Rakiraki and Sigatoka has sparked concern, particularly regarding its potential impact on rural communities. Bank CEO Udesh Kumar clarified that this move is part of a broader strategy aimed at strengthening services at branches in Nadi and Ba and has received the necessary authority approvals. Importantly, he assured that no jobs will be lost as a result of these branch closures.

Kumar explained that the closures will be executed gradually over the next few months. He emphasized that services will remain accessible to customers, who can continue to access their accounts through ATMs from the Bank of the South Pacific (BSP). The announcement of the merger between the Rakiraki and Ba branches and the Sigatoka branch with the Nadi branch has raised eyebrows, particularly from local banking union representatives.

Sailesh Naidu, national secretary for the Fiji Bank and Finance Sector Employees Union, expressed his concerns about the implications for rural service accessibility. He highlighted the importance of Bank of Baroda’s presence in these communities, known for offering competitive interest rates and straightforward services. Naidu urged the bank to reconsider its decision to ensure continued access for rural customers.

This development raises questions about the future of banking accessibility in underserved areas of Fiji. However, it can also be viewed as an opportunity for Bank of Baroda to recalibrate its operations and focus on enhancing service efficiency in locations with higher demand. The partnership with BSP for ATMs may mitigate some customer challenges by providing ongoing access to banking services during this transition phase.

In the context of ongoing discussions in the banking sector, including similar announcements from other banks about structural changes aimed at improving service delivery, this situation highlights the need for continual adaptation and focus on customer needs within the evolving banking landscape in Fiji.