The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A BAHAMIAN businessman says the weekly multi-million dollar money flow through the Family Islands, coupled with commercial bank exits, has created an opportunity for greater local ownership in the financial services sector.

Barry Malcolm, chief executive of SunCash, an agent of Western Union, said the Canadian-owned banks will continue to reduce their physical/branch footprint in the Bahamas and only operate in areas where they are profitable. "Millions in Bahamian dollars are moving through all the islands," he said. "The money has to move. It was moving via the gaming houses. The banks left, a void was created and filled by the gaming houses, but it was unregulated and it has to be regulated because of the concerns about blacklisting."

Mr Malcolm, speaking at the Business and Marketing Community Institute (BMCI) meeting on Tuesday night, added: "The banks are leaving - and will continue to leave - because each of the banks must continue to achieve a certain yield every year.

"Looking at the shrinking of the banks' presence in the Bahamas, my business partner and I saw an opportunity. These banks are not going to stop reducing their footprint, although they are going to continue to operate in areas where they are profitable."

Mr Malcolm said that he and Desmond Pyfrom, the company's chief technology officer, built-up the SunCash money transfer business. SunCash is one of Western Union's three agents in the country, the others being Money Maxx and Grace Kennedy Money Services.

Mr Malcolm said the Western Union franchise is but a small fragment of the company's business model. "We built a platform that enables the movement of money if you want to send money, request money or pay bills," he said. "What we are doing could only have been done with technology. I am proud that the technology platform we built to solve this problem was designed by Bahamians."

Mr Malcolm cited taxation as the biggest challenge faced in trying to launch the money transfer business. "The biggest challenge I have faced trying to launch the business I'm involved with is the challenge of taxation. I'm not talking about NIB or VAT; I'm talking about the taxation of trying to get the things I should get anyway done to run a business. That is a reality. That is a cost. That cost is significant to me as a businessman," he added.