The Tribune

By Fay Simmons

jsimmons@tribunemedia.net

A senior Royal Bank of Canada (RBC) executive yesterday denied that its reduced branch network is "a pathway to exit The Bahamas", saying: "This is far from the truth."

Liacarla Adderley, RBC (Bahamas) area vice-president for business banking, told the Eleuthera Business Outlook conference that the Canadian-owned institution has no plans to terminate its 115-year relationship with this nation but warned that the country has "a bit of catching up to do" in transitioning to digital banking.

She said: “It's no secret that we've reduced our footprint in the local market over the last several years. And, understandably, many people interpret this as a pathway perhaps for us to exit The Bahamas. This is far from the truth. I want to assure you that The Bahamas has been, is and will continue to be, a market in which RBC invests heavily in as we're committed to The Bahamas.

"This year, we celebrate a remarkable 115 years of service to The Bahamas and its people. We're certainly proud of the many contributions to the growth and success of this great nation. Our roots here go deep, and will remain firmly planted as we continue to provide comprehensive and innovative banking solutions to people and businesses nationwide.”

Ms Adderley said she plans to initiate internal discussions about RBC's lack of physical presence on mainland Eleuthera upon returning to Nassau. The potential rethink has been sparked by the island's investment pipeline, with projects such as Disney Cruise Line's Lighthouse Point destination; the Cotton Bay Club's $200m revival; and Jack's Bay's expansion set to move forward, and the anticipated impact on employment and economic activity.

RBC has previously consolidated its Eleuthera branch network, closing its Governor's Harbour and Spanish Wells locations to leave it with just one site in Harbour Island. Acknowledging the difficulties this creates for RBC's Eleuthera clients when it comes to depositing money, Ms Adderley said: “Over time, like any business, we had to reassess our operations, and we had to make the difficult decision to consolidate both Spanish Wells as well as Governor’s Harbour to our Harbour Island branch.

"We remain committed and continue to explore various options on how we can improve our services to the residents of this unique set of islands. In terms of the map and the number of projects that are happening on mainland Eleuthera, it didn't escape me that we're not on mainland Eleuthera, and so that's certainly one of the things that you have my commitment of going back and having a discussion about that, because I recognise that that's important.

Ms Adderley, though, argued that The Bahamas' banking future rests on embracing digital and electronic services via mobiles, the Internet and automated banking machines (ABMs). "The banking industry is constantly evolving, not just globally, but also here in The Bahamas and, by extension, in Eleuthera," she said.

"Our clients are increasingly turning to digital channels for the every day transactions, and leveraging our branch network for more complex financial advice such as buying a home, purchasing a car, investing for retirement, investing in your businesses or even just saving for your children's education. This is our vision of the future of banking in The Bahamas. The majority of the world is already there, and we actually do have a bit of catching up to do.”

Acknowledging that Bahamian commercial banks cannot ignore the Family Islands, Ms Adderley continued: "Given that our Family Islands for the most part are relatively small and less populated than New Providence, there are certainly unique challenges that come with providing banking services in the Family Islands.

"We've seen in the last few years that many of the commercial banks have withdrawn branches out of the Family Islands, and RBC is no exception. The reality here is that it is extremely expensive to operate a full-service brick and mortar branch in The Bahamas, and even more so on the Family Islands.”

She added: “We have to look at other solutions of providing banking services. There are several reasons why digital banking may be a better option than physically visiting a branch. Firstly, accessing your accounts through digital banking channels, such as mobile banking, and online banking, it can be a lot more convenient, especially if you live far or work far from the nearest branch.

"In the case of Eleuthera, the mainland is more than 100 miles long, and with some settlements only accessible by boat. We want our clients to spend less time waiting in lines at branches and more time doing the things that they love and, of course, the things that make them money.”

She added “Physical branches, although expensive, will always be an important part of our network. They complement our digital offerings and will be essential to our long-term success in the years to come. It's equally important to maintain a physical presence on the islands as this will ensure that those without access to the latest technology, will still have access to some level of banking services.”

Ms Adderley said that, while cash will not be eliminated as a means of payment, it was in everyone's interests to reduce its usage. "Driving adoption will be key to creating sufficient critical mass for widespread use of a digital currency. The reality is that physical currency of cash is costly and carries significant costs, not only to financial institutions but also to businesses," she added.

"While cash still plays a role, especially in the Family Islands, and cash will likely not be eliminated in the near future, we all still have a role to play in reducing our reliance on cash.”