Ken Attale, advertising guru enters the ballroom of the Cascadia Hotel and is obviously surprised.

His brief has been to talk to a group of women about the art and practice of that great business skill, networking. But as the Lonsdale Satcchi & Satcchi Chief Executive Officer enters the ballroom, the buzz is palpable. Close to sixty of the country’s leading female business executives and entrepreneurs are exchanging business cards, making contacts, entering information on their Palm Pilots, setting up appointments, listening and giving.

This is clearly not a coffee and cake women’s group. They are members of the Association of Female Executives of Trinidad and Tobago (AFETT). And they’ve got game. Many of them could probably give a few master classes in networking for business success. But at this particular session they have come to refine their art, to listen to the advertising guru talk about his own experience in building a professional network.  More im-portantly, they are attempting to un-ravel a code: do men have a different formulae for setting up and keeping connections than their female counterparts?

It’s a question — given the audience — that the advertising executive must have expected. If he didn’t, he certainly did let on for it is with the confidence of a general going into battle that Attale leaves the podium, strides into the exclusively female crowd and leaves some key messages: that old boys club can be penetrated, that there were certain networking skills that are not gender specific and that female business leaders are perhaps better at making contacts but sometimes fell short in knowing how to leverage those contacts into business opportunities. He could not have found a more fertile ground on which to deliver his message.

According to Attale, networking has many benefits but among the most important is that it is an efficient way to accomplish business goals with the best networkers often possessing contradictory skills. Networking is about results and relationships. Effectiveness and efficiency. Assertiveness and graciousness. Persistence and trusting. Promoting yourself and promoting  others. Building your business and building your life. Receiving and giving. Accepting support and contributing. Requesting and offering.

The master networker told members of the Association of Female Executives that there was great value in joining professional and charitable associations because they emphasised one’s talent for project execution, the ability to work part as a team and a disposition in some cases for philanthropy.  Attale also mentioned that when it comes to networking it helps to have a distinctive identity, to be opinionated on a variety of subject matters and to be known as a woman of substance. But at the Cascadia Hotel there were sixty women with distinctive identities, sixty women of substance who for all of Attale’s assurances find it consistently challenging to develop a networking approach with men.
 
One AFETT member Judy Chow, a tourism professional, noted that the ability to network consistently still had a lot to do with gender roles. According to Chow, women in their traditional roles as wife/mother and business executive did not have the same amount of time to invest as their male counterparts to go to the watering holes, to attend functions and join the plethora of associations. Not to mention that some of the “fields of networking” were still predominantly male and that men often felt threatened when their sense of belonging to a pack seemed to get wind of  the scent of a woman. Chow’s comments engendered an ‘Aha’ moment.

Do men and women business executives network differently? We know they do. If only because we have different leadership styles. Women are concensus builders, communal albeit decisive and men are aggressive, power-wielding and authoritative. But common ground can be found. Here’s what we can do. We can form our own associations like AFETT, we can be forthright in our pursuits, almost unconsciously conspiratorial in our collective and mutual understanding that we can call upon each other for referrals and to explore beneficial business opportunities.

Real networking — power networking — is a requisite part of the business game. It’s not inane. For women who want to rise to the top of their game, it’s absolutely mandatory. Judette Coward is a communications consultant. She is a board member of the Association of Female Executives of Trinidad and Tobago. The views expressed in this column are not necessarily those of Guardian Life.

You are invited to send your comments to guardianlife@ghl.co.tt

In the aftermath of the Iraq war, one economist says Trinidad and Tobago may be called upon to assist in the stabilisation of other regional economies.

That’s the view of RBTT economist, Kelvin Sergeant, on the topic, “The Price of Oil and the Caribbean Economy,” at one of RBTT ROYTEC’s lunchtime series. Sergeant said now is a good time for TT to expand its economic and political influence throughout the region. “I am not sure that our leaders are up to or committed to the task, but I think that it is an excellent opportunity for TT to do so.” He said TT will be in a position to help other countries of  the region because of its oil reserves.

Sergeant said although TT is an oil exporter, the rest of the Caribbean is not, noting that as a result this can have a direct impact on fuel prices and other oil- and gas-based products.” He cited September 11, as an example and noted that the price of airline tickets skyrocketed because of price increases in jet oil and security. Sergeant added that higher oil prices can also negatively or positively affect Government revenues. He said in TT higher oil prices will always positively impact Government revenues, but noted that other Caribbean countries have to spend more money on energy products. “There are implications for these countries that import oil. There are implications for wages, price levels, economic growth, inflation and the overall balance of payments. There are macro-economic effects that we cannot forget because there are ripple effects when oil prices are high.”

He explained that people will demand more wages if they have to pay more for electricity and other oil- and gas-based products. He said before the war started, oil prices started to go up and then fell to about US$24 per barrel when coalition forces invaded Baghdad. He noted that the volatility in oil prices will depend on the length of the war, the signals which are sent from the coalition forces, supply and the Organisation of Petroleum Exporting Countries (OPEC). “As long as Baghdad is invaded and US-led forces appear to have command of Baghdad, oil prices could fall below current prices which range from US$28 to US$34 per barrel.”

With regards to the length of the war, Sergeant said before the US forces invaded Baghdad, he had already concluded that the war in Iraq will be short. “I did not expect the war to be a long drawn out war. I think that the world economy has too much to lose from a long war and therefore I do not think the war will last much longer, maybe two more weeks.” However, he said notwithstanding the length of the war, there will be a significant impact on all econo-mies around the world and the Caribbean region is no exception. He noted that OPEC, which controls about 40 percent of global crude exports is expected to meet on April 24 to discuss output cuts after prices fell about 30 percent in the past month. “OPEC knows that if they do not sit down and discuss output cuts, the price of oil could fall even further because there is an over-supply in the market.” He explained that when the US forces invaded Iraq, oil producing countries thought that the Iraqi oil fields would have been destroyed and as such started producing more oil which led to an over supply and downward trend in prices.”

Another issue, he added which will affect the price of oil, is whether there will be closure with respect to conflict in the Middle East in the near future. He said the Middle East continues to be an area of conflict and tension. Venezuela, he noted, is also an important factor and country with respect to oil production and prices and can have some influence in the price of oil. “My own view is that oil prices will continue to hover between US$20 to US$25 per barrel over the next couple of weeks. OPEC will meet and there will be an agreement to cut production to let prices remain at that range. It is in their interest to keep prices at that level.” Additionally, he said the war will have other significant impacts on other sectors of the region’s economies.

Sergeant said countries like Barbados, Jamaica, Aruba, the Netherland Antilles and in particular St Maarten can face a situation of decreasing tourist arrivals from the US, because people are not travelling. “People from the US and European regions are not travelling. Tourist arrivals are down in almost every country of the region.” He noted that some of the small countries in the region like St Lucia, Grenada and Antigua depend on the tourism product for their very survival. “In an attempt to move away from the traditional exports of banana and sugar, most Caribbean countries have gone into tourism in a big way. They have moved away from their traditional exports and are now heavily involved in tourism.”

He warned that if the arrivals are not there, governments will have a problem with revenues and by extension expenditure.” According to the World Travel and Tourist Council, the war in Iraq can create a situation where US$3.5 trillion or ten percent of the world’s GDP would decline and 195 million jobs or 7.6 percent of total global employment will be lost. Sergeant said the future of the region’s airlines is also cause for concern. He said airlines around the world are facing difficulties because they cannot match revenues and expenditures. “Air Jamaica, Liat and BWIA are all facing difficulty and something has to be done to address the situation if we are to save this industry.”

In the previous two articles we have reviewed the changing role of banks in the provision of insurance and savings products. We are now in a new century. This article will consider what might be an appropriate model for the future.

One of the big shifts in western society in the latter half of the twentieth century is one that took power away from producers to customers. No longer do people unthinkingly accept what big institutions such as the Government or the law or banks tell them. They will make their own evaluation based upon information available to them. Thus banks need to understand what is important to their customers. Customers tend to form an opinion about a financial services organisation as a whole, so poor service on banking or an unsympathetic attitude to a request for an overdraft would not make the customer feel warm towards his bank and they would be unlikely to buy other products from them.

Thus the service provided by a bank across its range of products is as important as any product itself. Of course there are different needs and requirements for different types of people. A self-employed person has different needs to an employed one or to a housewife. Similarly a young adult has different needs to a retired person. The successful bank would be one who is alert to this. 

The next step for the bank is to be alert to the changing needs of its customers as they go through life. There are certain triggers for purchase that need to be identified. These triggers are stages in a person’s life when circumstances change and financial needs change with them.  One example of this is when someone gets a substantial salary increase. Naturally, such an individual would want to upgrade his standard of living. This might involve buying a better house. If so, a mortgage may be required together with   mortgage repayment, mortgage protection, vehicles and home insurance.

 Looking longer- term, the family of our individual will get used to that higher standard of living and would not want to lose it in the event of the main income earner’s untimely death. So life assurance is required to replace income on death. Of course death is not the only calamity. Long-term illness is another. And then looking longer term there is the need to make sure that an adequate standard of living can be maintained when the income stops. In other words a pension has to be set up. Many people will have one from their employer but for others it is a case of making their own provision.

Other triggers are marriage (and un-marriage or divorce), change of jobs, children growing up and leaving home and death of parent that can sometimes lead to an inheritance. In virtually all of these, an individual’s main bank, ie the one into which his salary or pension is paid and out of which all direct debits are paid, is in the best possible position to assist him. However, the approach from the bank to its customer has to be non-intrusive and helpful. Inevitably no matter how well off an individual is, his potential needs are greater than his income can support. So choices have to be made. Should he buy a smaller car and save for his retirement? Should he worry about protection against death or illness? In the case of people in their fifties, who have probably accumulated some savings in readiness for retirement, a constant question is “Where shall I put my money?”

The bank manager needs to develop a relationship with his customer that is based on trust, built upon knowledge of the customer’s financial circumstances, and is mutually beneficial. It is a relationship that demands patience because profits to the bank may be slow to accrue in the short term but are more durable in the long term. Banks cannot afford to take this custom for granted, they have got to be aware of the temptations that exist for their customers in the form of inducements from competing banks and other institutions. We now live in a world where banks have to work continuously to keep customers happy if they wish to get the most from their customer base. The ability to supply their own insurance products supports this objective.

If they are able to meet their customers’ needs, they will have a long and harmonious relationship. However, to establish a total picture of a customer’s needs and assets, banks require to undertake a significant investment in management information technology.  Because we are talking of long term rather than short term rewards to banks, only the larger banks stand a realistic chance of delivering. And if banks achieve this, their customers can go about enjoying life secure in the knowledge that they are getting first class advice on financial issues from a tried and trusted financial institution.

O’Brien is a partner in B&W Deloitte and Touche, the actuarial and and consulting practice of Deloitte and Touche in the UK. He has undertaken a number of assignments supporting mergers and acquisitions in the Caribbean and has adsvised a number of Bancassurers in Europe.

This is the final in a three-part series.

There is a growing general public awareness of the convenience of using bank accounts.

Increasingly, in Trinidad and Tobago, employees make payments of wages and salaries through the use of bank accounts that they require their employees to open, partly in a bid to improve the security of payroll transactions. In these circumstances, many account holders may have come to that status without first identifying and expressing their own needs for the facility.

The Central Bank in conjunction with the Ministry of Legal Affairs — Consumer Affairs Division, presents its Consumer Education on Banking Programme as a supplement to the product information that the banks do provide, much of which is provided within a competitive marketing context and with a focus on image and product selling. As a result, many consumers appear to remain ill-advised and ill-informed about banking services, what they offer, the most effective ways of using them and their cost. This document is designed to help consumers to better understand the use of bank deposit accounts.

What is The Value Of Holding A Deposit Account?
Whatever the manner in which consumers have decided to open bank deposit accounts, they may find it is valuable and worthwhile to hold one or more bank deposit accounts in the banking sector for a variety of reasons. These include:
* The convenience of paying bills — via through standing orders, cheques, ATM, debit cards or telephonic transfers;
* It is easier to manage the facility of managing your money — and exercising easier control over spending and savings habits;
* It is easy to the facility of receiving money conveniently — receiving wage, or salary or pension payments or payments by cheque from other persons;
* The enjoyment of security and low risk. — consumers may have less reason to carry large amounts of cash on their person while banks have an obligation to repay all moneys deposited with them. Risk of loss is minimised, and in the event of the outright failure of a bank or finance house, the deposit insurance system provides coverage on deposits up to $50,000.

What Types of Deposit Account Are There?
Banks in Trinidad and Tobago offer three broad classes of deposit accounts as well as several variations among these basic types. These account types are summarised below: Banks offer two basic types of deposit accounts.
1. Transactions-based savings and chequing accounts which are designed to facilitate everyday transactions such as paying bills and making purchases such as groceries and shopping.
2. Accounts for serious savers including savings accounts that pay high interest and limit the number of transactions and fixed deposit accounts.

What Do You Have to Do to Requirements for Opening a Deposit Account?
A deposit of $20 to $500 may be required to open an account depending on the type of account. The basic requirements for opening a deposit account are related to the issue of security. In order to establish your unique identity with the bank and minimise fraud, two forms of documentation are usually required. The first is an official identity document such as an electoral identity card, passport, or driving license. The second is usually a utility bill such as a telephone, electricity or water bill that helps to confirm your residence. Banks and financial institutions may have additional requirements or may vary the requirements depending on individual circumstances. The purpose of these forms of documentation is however to improve the level of security, your relationship with the bank and ensuring that the risks of fraud are minimised. Banks and financial institutions may have additional requirements or may vary the requirements depending on individual circumstances.

Are There Restrictions on Changing Suppliers and — Closing My Account?
If you close your accounts within three months of opening them you will be charged a fee.
For savings and checking accounts the early closure fee. Most banks assess a penalty fee for closing an account early, that is, within three (3) months of opening it. This fee may range from $250 to $5028.75
For in the case of a fixed deposit accounts the penalty fee for closing or breaking the deposit before the expiry of the term are:
* The fee for closing within three months ranges from $25 to $34.50, and in addition no interest will be credited to the account.
* Beyond three months and before the expiry of the term of the deposit, interest will be paid at the savings account rate and not at the agreed fixed deposit rate for the number of days the account had been held.
The existence of this penalty for early closure of an account therefore means that consumers should consider carefully their initial decision to select an account.

What Factors Are Important in Choosing an Account?
Consumers should consider a number of factors in deciding on the kind of account that they wish to use. These include: Your specific needs The cost involved in operating the account. The earnings or returns you may make from the account; and the commitment that you make in accepting the account

Do You Need An Account for Paying Bills etc? Your Deposit Account Needs
The use of a deposit account essentially addresses the need to facilitate transactions or to save, and consumers may have a choice among a number of savings accounts and chequing accounts to achieve these objectives.

If you need to facilitate the high volume of transactions this requirement may be satisfied through the use of a transactions-based savings account or a personal chequing account, both of which have the following characteristics: Both of these account types facilitate easy, flexible and unlimited access to your funds; The use of an ATM/debit card; the facility to access banks’ telephone services; and The facility to make automatic payments through the account; Often, there is no requirement to maintain a low or no requirements for holding a minimum balance.

What does it Cost to Operating a Deposit Account?
The principal cost associated with operating and maintaining a deposit account is a transaction charge for withdrawals. Most banks structure their charges as follows: in one or more of the following ways:
The creation of a specified number of transactions per period for which there are no additional charges. This number may be tied to the actual balance on the account at any given time.
The application of a fixed monthly fee that covers a specified number of free transactions, whether or not that many transactions are used.
The application of a specific charge is applied for each transaction over the specified limit.

In addition to the tran-saction/withdrawal charges, the banks also apply at least the following fees and charges for the operation of the account: Service charges for third party withdrawals from savings accounts; Service charges for withdrawals from passbook accounts without the presentation of the passbooks; In some cases, charges for the encashment of cheques drawn on another branch of the same bank or from another bank; Charges for establishing automatic payments through standing orders; Fees for the provision of certain statements such as a certificate of balances that may be required by an embassy; Charges for the closure of an account within three months of opening it; Dormant fee charges when an account is unused for more than six months a year, and also when such accounts have to be transferred to the Central Bank after being unused for 14 years; Fees for the replacement of lost passbooks, ATM cards or fixed deposit receipts.

Earnings
One of the benefits of holding a deposit account is the potential of earning interest on such accounts. Generally, more interest is earned when higher balances are maintained on the account and fewer transactions are undertaken. Thus high transaction savings accounts pay the lowest interest and does so on the minimum balance held during a quarter.
On the other hand, high interest savings accounts may pay interest on the daily balances, but may require higher minimum balances to be held. In some cases, as the balances held increase, the rate of interest paid may also increase. Fixed deposits usually pay the highest rates of interest on the agreed balance and if that sum is held for the entire term of the agreement.

How To Minimise the Cost of Operating Your Account?
1. Carefully select the account that best meets your transaction and/or savings needs. Take the time to have your bank explain their products, the services and conveniences they offer and the cost of operating them.
2. Shop around for the best available alternatives.
3. Make maximum use of ATM and debit cards and your own bank’s ATM machines.
4. Use of the telephone banking services of your bank may also result in lower transaction fees.
5. If you qualify for one of the special packages use such an account.
6. Select a service package that matches the manner in which you use our account. Review your needs from time to time to see if your package still satisfies them.
7. Maintaining certain minimum balances in your account may lead to lower fees and charges and earn higher interest.
A number of fees and charges apply with the operation of a deposit account. The following tips and suggestions will help you to reduce or minimise the burden of such charges on you.
8. Carefully select the account that best meets your transaction and/or savings needs. Take the time to have your bank explain their products, the services and conveniences they offer and the cost of operating them.
9. Shop around for the best available alternatives.
10. Make maximum use of ATM and debit cards. The cost of an ATM withdrawal from one of your own bank’s machines, or a debit transaction at a merchant may range from 50 to 65 cents, while withdrawals through a teller can cost as much as $4.
11. Use of the telephone banking services of your bank may also result in lower transaction fees.