The Tribune

By FAY SIMMONS

jsimmons@tribunemedia.net

RBC FINCO’s top executive says Bahamians are beginning to embrace a digital future with 95 percent now conducting their financial transactions electronically.

Deverson Warner, the BISX-listed mortgage lender’s managing director, told the Grand Bahama Business Outlook that financial institutions such as his own are focused on accelerating e-commerce and the increased use of card payments at the expense of cash, plus the introduction of robust legal and regulatory frameworks to facilitate this new business environment.

He said: “The acceleration of e-commerce and card payments at the expense of cash has become a focus of many economies, and specifically, financial institutions. The future will require an e-commerce ecosystem that facilitates the digital payments and establishes appropriate legal and regulatory framework for online transactions. Financial institutions like RBC play a vital role in helping clients thrive in a fast-paced digital environment.”

Mr Warner added that financial institutions must, at a minimum, understand client needs, how technology influences consumer behaviour and how to use that same technology to derive a competitive edge.

“It has now become table stakes for financial institutions to understand three things. One, how our clients’ needs are changing, how technology has and continues to transform consumer behaviour, and leveraging technology and digital solutions to give businesses a competitive edge,” he said.

“Clients have said that they want fast and convenient payments solutions. Governments and regulators are seeking to accelerate financial inclusion and reduce cash usage to cashless initiatives. Businesses need digital solutions that give them a competitive advantage; being able to pay payments processing within one to three seconds by a merchant and e-commerce solutions.

“This is the minimum expectation of a client’s access to solutions that allow payment gateway integration with major social media platforms like Facebook, Instagram, Twitter or What’s App.” Mr Warner said the COVID-19 highlighted the need for a transition to digital banking, and that providing safe banking platforms should be a priority for financial institutions.

He said: “The COVID- 19 pandemic highlighted the necessity for adopting e-commerce and technological solutions for all levels of business. Propelled by the pandemic, bankers, consumers and retailers have been moving away from manual processes and cash payments towards using technology and digital forms of payment.

“The digital future for The Bahamas means our people need a safe, secure and easy way to navigate a digital platform for their financial transactions. This has to be a top priority for financial institutions.”

Mr Warner said more than 95 percent of financial transactions are performed digitally in the Bahamas. He added: “In recent years across the globe, the popularity of cash has dwindled as digital payments have become faster, cheaper and more convenient. Today, economic and financial environments like The Bahamas promote e-commerce and local businesses to serve domestic and international consumer markets.

“Clients are choosing digital options to conduct more and more of their transactions. Today, 95 percent of financial transactions are being performed digitally by our clients in The Bahamas. This is what it means to embrace the digital future, making it easier for Bahamians to access a vital online platform and access to first world solutions to effectively compete with the rest of the world.

“Access is no longer limited to physical availability. This is technology. This is what embracing the digital future of financial institutions look like.”