The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

Deputy Prime Minister Chester Cooper announced that Fidelity Bank will be opening a branch in Exuma “shortly”, bringing relief to some of the island’s banking woes.

Speaking at the Prime Minister’s Office weekly press briefing yesterday Mr Cooper said that Fidelity will be opening on Exuma and is also considering putting a branch in Long Island. He added that the government is “being very intentional” with progressing the country’s underbanked Family Island communities.

He said: “Fidelity Bank will be opening in Exuma shortly, I’m delighted to tell the people of Exuma that. I’m also happy to tell you that they are also looking at Long Island.

“I’m also at liberty to say that the government of The Bahamas is being very intentional in terms of advancing banking throughout Family Island communities.”

Commercial banks have progressively withdrawn from the Family Islands over the last ten to 15 years, citing the high operating costs and negative returns associated with maintaining a physical branch presence that results in them incurring losses.

Mr Cooper said that it was a “tragedy” and “simply unacceptable” that many Family Island residents must travel to other Family Islands or New Providence to conduct banking transactions. He added that the government is collaborating with banks to “find solutions” to the banking issues that affect many islands.

He said: “We promised that we would look after the people and that we would not be overtly Nassau-centric. I’m happy to tell you that working along with our banking partners. We’re seeking to find solutions for all of the Family Islands.

“It’s a part of development of commerce in these islands. And really, it’s a tragedy that many of the residents of some of these family islands are having to travel to others islands to do their banking in 2023 it’s simply unacceptable and we’re being very intentional as to how we’re addressing it.”

Pedro Rolle, the president of the Exuma Chamber of Commerce said that the Exuma business community is “excited about the prospect” of having another commercial bank on the island. He added that having an increased banking presence will help the local economy and give residents banking alternatives.

He said: “With the addition of Fidelity to Exuma, we would have two banks as they would be joining RBC. I think it would be a wonderful thing for Exuma, I think it would mean a lot to the local economy, it would give people options and Exuma is excited about the prospect of having Fidelity join us.”

Mr Rolle explained that the lack of commercial banks on the Family islands have led to many “challenges” and has stifled the growth of the local economy.

He said: “The challenges that we’re having in a lot of our Family Islands revolves around banking. If you don’t have good commercial banking, it really kind of inhibits the ability of a local economy to grow and to expand as it should.”

Earlier this year, the MP for North Andros and the Berry Islands, Leonardo Lightbourne, issued a “plea” for intervention to resolve his constituency’s banking crisis while addressing the House of Assembly during the 2023-2024 Budget debate. He explained that said the absence of a physical bank branch in his constituency has forced some pensioners to travel to Nassau to conduct transactions, slicing their fixed income in half. Residents also frequently spend hours commuting to the ATM only for it to be out of service.

“I would like to plead on behalf of the people of North Andros and the Berry Islands for an intervention and the presence of a local bank. An ATM (automatic teller) machine cannot meet the needs of the people. The North and Central Andros community needs a physical presence desperately,” he said.

“The constituents on pensions have to travel to Nassau because there are no banks. What they are actually receiving in their monthly pension is less than half [of what they are entitled to] because they have to purchase plane tickets, find accommodations, transportation etc,” he added.

“There is no physical presence of a bank in North or Central Andros, so residents have to drive more than an hour only to find out that ATM is not operational in some cases, which is a major inconvenience and disruption not only for the residents, but a major disruption for commerce.”

Draconian measures are often taken so residents and tourists can get cash on Andros, with some people having to pay pilots $20 to take their client cards to New Providence just to withdraw money from ATMs. Some take the flight themselves and pay up to $300 for the service and ground transportation just to get to an ATM.