The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Andros businesses are being crippled by a lack of functioning automated teller machines (ATMs) and access to financial services, with one company withdrawing all available ATM cash in a single day to meet payroll.

Darin Bethel, the North Andros Chamber of Commerce president, told Tribune Business yesterday that the Central Bank must either expand Sand Dollar adoption or ensure more ATMs and other financial services access points sre provided to businesses in the island's north and central areas.

“We have a situation where Scotiabank moved off of the island three years ago and they left an ATM machine," he said. "But the entire island of Andros, from north to the south, doesn’t have any banking facilities. The folks in Central Andros had an RBC but they moved out, too, and didn’t leave an ATM machine, so the folks from central Andros come to north Andros to use the ATM machine.”

Scotiabank fills the North Andros ATM every Monday, Wednesday and Friday, but after only a few hours on each day it promptly runs out of cash and becomes useless until it is resupplied. Last month the ATM was down for over three weeks prior to April's end. South Andros does not have banking access apart from a credit union.

Commercial banks have progressively withdrawn from the Family Islands over the last ten to 15 years, citing the high operating costs and negative returns associated with maintaining a physical branch presence that results in them incurring losses.

Mr Bethel, though, said Andros has seen a vast amount of small and medium-sized businesses open in the past two years, adding value to the local economy to the point that he is astounded how the commercial banks have failed to capitalise on this.

“A lot of people came back home and opened a lot of small businesses in recent years, and that’s what has the business environment on the upbeat,” he said. “The amount of service stations on the island have grown over the past five years from one to now nine.

Commercial banks need to return to Andros because of the increased economic activity, Mr Bethel said: “When you look at BAMSI (Bahamas Agriculture and Marine Science Institute), when most of the people go to the ATM - because they aren’t sure when the ATM is going to be active or inactive - they go and withdraw their entire pay cheque because they just don’t know when they are going to have access to an ATM again.

“Every time when BAMSI’s payroll comes through, which should be over $70,000 per month, the Scotiabank ATM does not have that kind of money in it. Even if everyone from BAMSI may not withdraw all their money, a high percentage of them do along with other locals, and this puts a strain on other government workers who are also doing the same thing.”

Mr Bethel said the situation creates a security risk for business owners and residents because, with limited access to banking, more persons are deciding to hold cash at their homes or companies. “We really have to find some way to resolve this," he added.

"One thing Scotiabank may be able to do is if they can add another ATM machine inside the existing building that they have, and maybe put another one somewhere else. This would definitely take the strain off of the existing ATM when it goes down.

“I’m also looking into getting people more informed and conditioned into using more of the digital currency, the Sand Dollar, so we are looking at ways to try and implement that to also take some of the strain. We also are looking at ways to have more of the businesses have the credit card machines.”

Some utility companies do not accept credit cards on Andros despite the disconnection threat this poses for customers. “The Water and Sewerage Corporation not having a credit card machine was very hard on the seniors. Water & Sewerage is saying cash only but there is no way of getting cash to them,” Mr Bethel said.

Draconian measures are often taken so residents and tourists can get cash on Andros, with some people having to pay pilots $20 to take their client cards to New Providence just to withdraw money from ATMs. Some take the flight themselves and pay up to $300 for the service and ground transportation just to get to an ATM.