The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

THE Deputy Prime Minister yesterday admonished the commercial banking industry to "do a much better job" in preparing Bahamians for the digital financial services age.

K P Turnquest, driving home a message he delivered last week, told Tribune Business that Bahamas-based commercial banks had "not paid enough attention" to addressing consumer concerns in their haste to drive clients to electronic/digital banking.

He argued that too little was being done to combat mistrust of new technology, and educate Bahamians on the benefits of going 'digital', which they will ultimately have to embrace to keep up with a fast-changing financial services market.

This, Mr Turnquest added, was key to solving 'financial inclusion' woes created by the withdrawal of physical bank branches from the Family Islands that threatens to undermine access to financial services.

Describing access to mainstream financial services as "a pressing issue" for the Minnis administration, the Deputy Prime Minister said the lack of 'financial inclusion' on islands such as Acklins was inhibiting their growth and contribution to the Bahamas' gross domestic product (GDP). "The banks have been pushing along but have not given enough attention to ensuring the most vulnerable are made aware of the facilities available," Mr Turnquest told Tribune Business of the digital banking 'push', which has been driven by the three Canadian-owned banks in particular.

"Those not having access to a computer, how they might be able to use their phone as most people have access to smart phones, how they can access their account through ATMs and generally increasing financial literacy and knowledge.

"The banks can do a much better job sensitising the Bahamian people, and bringing people along with this new age of banking. It's in everyone's interests, including theirs."

Mr Turnquest, echoing sentiments expressed last week in his speech to a Miami anti-money laundering conference, said "the lack of financial inclusion" in many Family Islands meant those communities were unable to properly develop and exploit available economic opportunities.

"Without access to good, reliable financial services it really limits those communities' ability to take advantage of the global economy and natural environment they have," the Deputy Prime Minister explained.

"It's an impediment that will not only affect the growth and GDP contribution from those islands, but it affects the entire country." The absence of jobs and entrepreneurial opportunities in these islands, Mr Turnquest added, was leading to their depopulation and flow of persons to Nassau that "puts a strain on services" and results in the capital's overcrowding.

Recent commercial bank branch closures in the Family Islands threaten to further exacerbate this trend and problems of 'financial inclusion' for all Bahamians, while driving home the urgency for this nation to move to digital banking channels such as mobile and the Internet.

Royal Bank of Canada's (RBC) impending exit from both North Andros and Long Island threatens to leave those locations without a full-service physical bank presence, and Mr Turnquest said "creative solutions tailored" to the Bahamas' geographical make-up are required.

"It's a pressing issue given the posture of the banks with respect to downsizing in terms of a bricks and mortar presence," Mr Turnquest told Tribune Business of 'financial inclusion'. "We don't anticipate there's going to be a reversal of that trend in any way, so we have to meet the challenge and go forward.

"That's almost as hard as finding the right technology solution. A lot of people are distrustful of this technology. We're no different. It's going to be a real education push from us for Bahamians to understand the security around the technology, the efficiency of the technology, how to use it properly and safeguard their information and accounts. "It's a big component, and part of the effort we're going to have is to step up the education campaign so that persons understand electronic banking. The Central Bank is working on a number of initiatives we hope will provide some relief in the medium to longer term," the Deputy Prime Minister continued.

"This whole idea of financial inclusion is going to require a lot of creativity on the part of all stakeholders, and it's going to require some innovative solutions that may be tailor-made for the Bahamas' given our geographical make-up and technology that we have or do not have in some of our Family Island communities."