Anthony Buttigieg, Chief Banking Officer at APS Bank, leads the retail branches, commercial centre and digital channels of the Bank. As Chief Investments Officer, Noel McCarthy oversees the investment planning and management services for all the Bank’s customers. Together, the two Chief Officers are responsible for the services offered by the organisation, overseeing the Bank’s retail, corporate and investment services portfolio. Here they discuss the Bank’s strong position in retail banking, and growth strategy for corporate lending and investment services.

As the Bank with Values, APS Bank enjoys a strong position in retail banking. What is the growth plan for the next three years?

AB: Retail banking is the face of the Bank. Customer service, one of the most fundamental components of the overall customer experience, is still an enormous opportunity for growth for retail banks. However, the core banking products, offerings and service levels are also vital to continued growth supporting the Bank’s customer and revenue base. The strong position the Bank has achieved, particularly within retail where the Bank captured ±40% of the home loan market share last year, means that we are projecting more growth in the coming years both for the commercial and retail arms of the bank

With regards to commercial banking, during the recent years, we have managed to attract to the Bank most of the major businesses on the island, by offering specialised services to meet their specific requirements through our professional team of relationship managers.

NM: The Bank has also invested heavily in Human Resources and IT Infrastructure, and the plan is to continue to provide our customers, with the same high-quality service, through various distribution channels, while anticipating their requirements and expectations. Moreover, we are planning to launch new investment products, which will further enhance our offer.

Nevertheless, our service will remain focused on the relationship with customers. We are committed to continue investing in our investment services and asset management offering, where we have also seen steady growth over the past few years, with over €400 million in assets currently under management.

How do you identify market and growth investment opportunities for the Bank?

NM: All our products are designed at executive level, drawing on the mix of expertise and strong skillsets, to ensure that they complement each other and meet customer requirements, ahead of launching them. A case in point is the pension schemes we launched last year. We feel strongly that the public would benefit by building a private pension to supplement their state pension.

AB: Apart from the products we offer, I believe our customer centric approach creates opportunities. We serve as financial advisers to our customers, as they may come in for a particular product, however during the course or conversation we will identify other financial needs that they may require and offer them the appropriate services and products to meet their needs. This is where the synergy between teams happens, resulting in a holistic approach for each customer that draws on the extensive skillsets our teams offer.

APS Bank St Paul’s Bay branch

How has APS Bank, known as the community Bank, managed to remain customer-centric and support financial inclusion, while undergoing a successful digital transformation?

AB: We are a community Bank which means we are there at the start of each customer’s journey. We have invested heavily both in digital, well ahead of the pandemic, and in how we developed our branches in a way that offer utmost privacy. The way we remained focussed on all customers was by embarking on an educational campaign, creating digital champions at each branch to offer added value to those looking to make the transition to digital banking. During the pandemic our branches remained open, in line with our commitment to serving the community. As a community Bank, we always promote financial inclusion, developing social products, partnering with Government and non-governmental organisations, to assist those who need support in purchasing a property, and in moving up the social ladder. Sustainability has always been at the core of our values, with the Bank leading in developing and offering ethical products to the market.

NM: Our focus on building trust and relationships with our customers, continues to serve us well. Certainly, when it comes to mobile engagements and simple transactions, speed and efficiency are the name of the game, but in-branch customer engagements demand a different focus entirely. Customers coming to the Bank looking to invest their life savings, considering a savings plan or to purchase a property, are looking for a real conversation. Otherwise, they wouldn’t have set foot in the branch in the first place. It’s all built on the relationships we have with our customers and the trust, especially in investment services where customers are entrusting their savings to us.

What are some market opportunities that APS Bank is viewing as a long-term investor?

NM: Currently, heightened economic uncertainty is leading us to focus on investments which are more resilient and stable, such as companies which provide products and services whose demand is price inelastic, companies whose earnings are relatively resilient in adverse economic conditions and companies operating in sectors that cope well in inflation. In all situations there are always some sectors which perform better than others, at the same time, market volatility is bound to create opportunities, and of course, we are always on the lookout for attractive entry points in the market. The key is that investment decisions are taken with long term returns in mind rather than short term gain.

AB: We keep the customer at the heart of everything we do. We went through pandemic together with our customers, assisting where possible. We assisted those sectors which were hit badly by the pandemic, particularly the hospitality sector, by providing moratoriums on capital and interest loan repayments. Looking to the future, our strategy will be based on driving economic growth and social inclusion, while supporting the environment and sustainability of the local community.

Anthony Buttigieg joined APS Bank as Head of Banking in May 2016 and was appointed to his current position in June 2019. His experience in the banking sector spans 45 years. He started his career with Mid-Med Bank, which later became HSBC Bank (Malta) p.l.c., where he held several Senior and Managerial roles. He is a qualified banker and an associate of the Chartered Institute of Bankers.

Noel McCarthy joined APS Bank in 2000 and served in several successively senior positions over the years, including Chief Financial Officer. He was appointed to his present role in June 2020. He is a CPA and a fellow member of the Malta Institute of Accountants. He also holds a M.A. in Financial Services from the University of Malta and serves as a Director of ReAPS Asset Management Limited and as Alternate Director of IVALIFE Insurance Limited.

APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The Bank is also registered as a Tied Insurance Intermediary under the Insurance Distribution Act 2018

The views and opinions expressed in this interview are those of the authors and do not necessarily reflect the official policy or position of APS Bank plc.