By NATARIO McKENZIE
Tribune Business Reporter
nmckenzie@tribunemedia.net
THE Government has received expressions of interest from mobile banking solutions providers to fill the Family Island void left by the commercial bank pull out, the Deputy Prime Minister said yesterday.
K Peter Turnquest told Tribune Business: "We have a number of entities who have expressed interest in providing mobile solutions to those communities. We are exploring our way through those to determine what that structure may look like in terms of the actual physical operation, as well as the regulations that may need to be in place around that to ensure we protect the system and the integrity of the system."
His comments came after Royal bank of Canada (RBC) announced the closure of four branches, including a pull-out from Andros and Long Island, on Tuesday night. RBC also stopped cashing cheques, accepting bill payments, taking deposits or buying and selling foreign currency for non-customers on January 2. It now only cashes government cheques and pension cheques for non-clients
Deposits and transfers to other RBC clients' accounts are also no longer accepted over-the-counter in branches, other than those for FINCO clients. The bank also ceased its FastDeposit service on January 15, while wire transfers will not be processed over-the-counter - and standing orders for credit cards discontinued - from January 31, 2018. RBC said that it has near 25,000 active users of its mobile banking app.
Mr Turnquest yesterday told Parliament the impact of RBC's move, and similar downsizing by other commercial banks, would be felt more deeply because the Bahamas was "behind the 8-ball" in preparing its people to exploit digital banking and other technologies.
He described technological evolution as "the curse of this generation" when it came to replacing human employment, adding that the Government did not control such decisions by the likes of RBC.
Speaking afterwards, Mr Turnquest said that while the Bank of the Bahamas could possibly fill the void left by other commercial banks, he stressed that the Government would not dictate such moves.
"We are not going to dictate to BOB what they should and shouldn't get into. What we do is suggest where we believe they ought to have a look to see if their business model would support a location in these under served areas, and to the extent that they determine based on their business model that they can support an operation then they would go on with that. We would not force that. We are looking at this entire situation," he said.
"We are looking at what is happening, and we are looking at where domestic banking is likely to go and trying to ensure that we put in place initiatives to allow for the technological developments that are happening. We need to keep pace and expand the offerings available to Bahamians in these communities so they are not vulnerable for unbanked proceeds."
Comments
sheeprunner12 6 years, 9 months ago
Meanwhile ......... the webshops are licking their lips ......... What a " wild wild west" scenario
killemwitdakno 6 years, 9 months ago
Which is who?
sheeprunner12 6 years, 9 months ago
The PLPs raped the Bank of The Bahamas for years ......... But the BOB is 65% owned by Bahamians (Government) ......... So, why not set up a BOB on islands where no full time banks exist????? ......... Or empower the Post Office savings accounts to expand their banking activities.
But some solution has to be found to this real Out Island dilemma. ............. And Soon!!!!!!
ohdrap4 6 years, 9 months ago
Or empower the Post Office savings accounts to expand their banking activities.
Remember that one of its activities were to cash multiple fraudulent copies of the same check?
they do not even have a database to keep track of po box rentals.
ohdrap4 6 years, 9 months ago
By NEIL HARTNELL
Tribune Business Editor
nhartnell@tribunemedia.net
The Auditor-General this week warned of “an underlying tone of fraud” at the Post Office Savings Bank, with customers able to deposit and withdraw sums more than 100 times’ greater than legal limits.
Terrance Bastian, detailing the findings from a more than three-year investigation by his staff, found that the Post Office Savings Bank suffered from “significant internal control weaknesses” relating to the acceptance of deposits and account withdrawals.
In particular, he zeroed in on how one account holder was able to withdraw more than $923,000 from the Post Office Savings Bank over the 15-months to April 8, 2015, even though the law and ‘Savings Bank Rules’ stipulate that account balances cannot exceed $6,000 in any one year.
Then there was the “inexplicable” case of another Post Office Savings Bank client who withdrew some $668,553 more than he had deposited over the three years between May 2012 and April 2015, even though the law, again, prohibited credit in excess of $6,000.
Mr Bastian, in a report tabled in Parliament this week, said this particular client had deposited $613,915 with the Post Office Savings Bank over that three-year period, yet had withdrawn a collective $1.282 million from their five separate accounts.
“The amount of approximately $669,000 withdrawn from the Post Office Savings Bank by this beneficial owner in excess of deposits held is inexplicable,” the Auditor-General found.
“This shows a breakdown in management’s oversight in carrying out the mandate of the Post Office Savings Bank and safeguarding customer assets. Based on this discovery, it appears that there is an underlying tone of fraud.”
sheeprunner12 6 years, 9 months ago
Yes ....... we know the failures of the Post Office system ...... but it can be fixed with some political will and supervisory change of culture.
BahamasForBahamians 6 years, 9 months ago
I wouldn't depend on this administration to complete the overhaul of the Post office.
Not while our PM is on a photoshoot with Joel Osteen.
sheeprunner12 6 years, 9 months ago
What's your point?????? ....... Osteen is linked to Bahamian PO fraud????????
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