The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Scotiabank (Bahamas) top executive yesterday said 93 percent of transactions at the five branches it plans to close are now being conducted over self-service or digital banking channels.

Roger Archer, the institution's managing director, in e-mailed replies to Tribune Business questions said the use of these mechanisms by customers using its Andros, Exuma, Long Island, Abaco and Paradise Island branches had accelerated during the COVID-19 pandemic.

"Within the branches impacted by these changes, approximately 82 percent of total transactions were being conducted using our self-service banking channels (which include ABM, point of sale, mobile and online) at the start of 2020," he said. "By September, this number moved to approximately 93 percent. We believe the current trend in customer preference was further accelerated by the COVID-19 pandemic."

Some observers will likely voice surprise at the high level of electronic and self-service banking use, especially in the four Family Islands affected, where Scotiabank's pull-out has been greeted with alarm due to the implications for financial access and inclusion with communities being stripped of long-standing physical branch presence.

Mr Archer added that Scotiabank will "seek to preserve employment by reassigning impacted team members to other areas of our operations where possible. As such, we are not able to immediately determine the number of team members who will be impacted. Staff members who are affected by these changes will also be prioritized in the recruitment process for any current vacancies".

Chester Cooper, the Opposition's deputy leader and finance spokesman, and Exuma MP, yesterday accused the Government of "throwing in the towel" on the drive to electronic banking as he branded Scotiabank's withdrawal "a serious blow".

Arguing that the Sand Dollar, the Central Bank-backed digital currency, was not ready to replace cash transactions in many Family Island communities, Mr Cooper said: "The closure of Scotiabank branches on the Family Islands will deal a serious blow to the economies of Abaco, Andros, Exuma and Long Island, which are already struggling greatly from the effects of the pandemic and the harsh economic recession.”

“This move is most disappointing to the loyal customers and residents of these islands that have used the services of this institution for decades. The people of Exuma have consistently complained of the dwindling level of services of banks there, particularly after Bank of The Bahamas closed its branch in 2017.

"On Exuma, the move will impact many businesses, tourists, workers at Sandals, government employees, pensioners, churches and others. It will be near to impossible to keep the ATMs properly stocked with cash. It will also hamper attempts to deposit cash, posing a safety risk to business owners. The vast majority of Family Islanders cannot afford or risk travelling to Nassau for their banking needs.”

Mr Cooper continued: “It is even more of a logistical nightmare considering the reduced operating hours of banks on New Providence and the ever-shifting travel protocols for inter-island travel under the state of emergency that apparently has no foreseeable end.

“The idea that their new model can replace traditional banks on islands is unrealistic. This is not a serious alternative to meet the needs of the people in these communities. In summary, adequate banking is essential to commerce, orderly Family Island growth and development and our way of life.”

“I implore the government to immediately engage the bank in discussions to delay or cancel this move. Comments in the press by the minister of finance (K Peter Turnquest) today indicate that the current administration has already thrown in the towel in this regard. They must not give up so easily.”

Mr Cooper called on the Government to re-open the Bank of the Bahamas branch on Exuma and expand the bank’s satellite network throughout the Family Islands.

“By doing nothing we are leaving thousands of Bahamians essentially unbanked and at an extreme disadvantage in terms of economic viability and growth. These developments cannot be left as is as we witness the further erosion of the financial capacity of our Family Islands," he said.

“The laissez faire, hands-off attitude of this administration with regard to the stripping away of banking services on our Family Islands and, in fact, all our islands, is intolerable. The Government should stand in the gap for its people. To continue to do nothing is not acceptable.”