Issue link: https://maltatoday.uberflip.com/i/1360420
11 maltatoday | SUNDAY • 11 APRIL 2021 NEWS OVER 50 YEARS OLD? APPLY FOR THE COVID19 VACCINE VACCIN.GOV.MT OR SEND YOUR ID CARD NUMBER BY SMS ON: 99180045 99180044 TO GET VACCINATED IN MALTA TO GET VACCINATED IN GOZO BOV pays top price for strategy consultants MATTHEW VELLA BANK of Valletta has en- gaged UK consultants AJ Belt Consultants to assist in the bank's transformation strategy to create a lower risk profile and invest in techno- logical innovation. At a rate of €1,750 daily and €250 allowance, BOV's en- gagement of Alan Belt former consultants Promontory for its ambitious transformation strategy. Belt, of Hertfordshire, UK, is a specialist in change and transformation for retail banking, with expertise in the increasingly complex risk and control frameworks for anti-money laundering ob- ligations. Belt has worked at several banks, including TSB, Al Rayan, and First Abu Dha- bi Bank. CEO Rick Hunkin said in the bank's annual report that technological innova- tion across most business lines, and steep regulatory demands for systemic banks such as Bank of Valletta, are changing the tradition- al banking landscape. "We must not only accept these changes but use them as cat- alysts for a major shift from the use of cash and cheques to the use of electronic bank- ing channels." He is also driving the inten- sive transformation to make BOV a more efficient, more digital and more custom- er-oriented bank. "We have set up a multi-skilled strategy implementation team tasked with co-ordinating the mul- tiple work streams within the extensive programme of initiatives that will be under- taken. The first wave is being implemented and further projects will be embarked up- on as the recruitment process in the new organisational structure is finalised." Bank of Valletta has told MaltaToday the fees charged by Alan Belt are commensu- rate with the fees that such lo- cal and international consult- ants charge in line with their area of specialisation. "Such consultancy agreements are bound by agreed deliverables and are only entered into fol- lowing a detailed selection process which is governed by the Bank's procurement pro- cess and approval levels. Any significant contract also re- quires board approval which has been properly sought and obtained in all cases." It said consultancies of this nature cease to be required upon successful delivery of their contractual obligations. "The Bank also uses consult- ants to train its internal per- sonnel and transfer knowl- edge as part of its re-skilling programme." Hunkin outlined ambitious changes for BOV, saying customers are increasingly expecting straight-forward, contactless, digital banking services available round the clock and with multi-channel access. "We have set up a Digital Factory, bringing together our Business and IT arms to leverage best-of-breed technology and provide straight-forward, efficient banking services to our cus- tomers. We are also work- ing to significantly reduce customer reliance on basic 'in-branch' transactions to afford more time to proper- ly developing customer re- lationships. These initiatives will improve the customer journey, across all banking channels and portfolio of ser- vices." CEO Rick Hunkin will be paid a total of €459,000 in salaries and bonus, according to BOV's new remuneration policy for top executives. Hunkin's first full year as BOV CEO coincided with the start of the COVID-19 pandemic, which saw BOV pre-tax profits fall to €15.2 million, and no dividends an- nounced. Banking regulators are not recommending the distri- bution of dividends, so as to ensure that BOV can meet the high demand on capi- tal and support the Maltese economy till the end of the pandemic. The most negative impact on the bank's bottom line was a €39.8 million in- crease non-performing loans (NPLs) on aged non-per- forming debtors and €38.1 million in provisions related to COVID-19.