Fuñia Lan Bank
The Country's oldest continually operating bank.
History
In 1866 a group including Felipe Delahante, Gérard Joubert and Henri Ledru-Rollin (founder of Port Henri) founded the Banque de Fuñia Lan headquartered in Port Henri at 12 Rue de la Mare. The bank still has a branch there. In 1871, in recognition of the relationship between the French and Anglo communities, the bank opened a branch in Kings City as the Fuñia Lan Bank.
Governor Jeffries tried to separate the bank from its French owners refusing to trade with it and instead supporting the United British Company's own institution which was started 1872. He ensured that all government funds were transacted through the United British Bank of Fuñia Lan (now United Finance Company). This tradition continued through to 1899 when the British pulled out of Funia Lan.
From 1899 until 1943, Fuñia Lan Bank printed the Francs used in the colony. It began printing the new Tals from 1943 until 1947 when the Reserve Bank of Fuñia Lan was established.
In 1944 the bank was taken over by the National Council becoming a subsidary of [Independent Holding Company[1]]. It shifted its hedquarters from Port Henri to Fuñia Lan Cite in 1947
The bank continued to dominate retail and business banking up to 1979. It was responsible for a number of innovations through its history:
- mortgage bonds to fund housing in the 1950s, a practice taken up by Building Societies and Mortgage Companies across teh country
- computerisation in the 1960s
- Saturday banking in 1974
- the major player in eurobonds and swaps in 1976
- first Credit Card (CredoCard) in 1978
- first ATMs in Fuñia Lan in 1979
- first Point of Sale system in 1984 (ALLAN)
- opened two 24 hour branches at Fuñia Lan Aeroport and Zona 24 in Fuñia Lan Cite in 1986
- developed the Alliance Card, a combined ATM card and Credit Card system in 1987
Reducing the Dominance
In 1979, the bank directly held sixty per cent of the banking market. It also directly held 40 per cent of the Number two institution (Catriona Insurance banking Services) and investments in other banks. Following the collapse of the Australasian Fuñia Lan Bank, there was widespread concern at both the dominance of the market by Fuñia Lan Bank. This concern resulted in the passing of the three Banking Acts which impacted shareholdings and market practices.
In the midst of significant consolidation amongst the sector, the Bank's owner IHC gradually sold 70 per cent of its shareholdings, retaining its current 30 per cent. The end result of the consolidations was that in 2001 after assuming a position as the country's largest bank from its founding, Fuñia Lan Bank was relegated not to second place but to fourth.
