By NEIL HARTNELL

and YOURI KEMP

Tribune Business Reporters

A senior Royal Bank of Canada (RBC) executive yesterday confirmed it has stopped issuing $20 notes through its automated teller machines (ATMs) as part of efforts to drive Bahamians towards digital banking.

LaSonya Missick, RBC (Bahamas) managing director and head of personal banking, told Tribune Business that the Canadian-owned bank sees the move as part of a “cash reduction” strategy amid the belief that clients are increasingly turning to electronic and digital channels to conduct regular financial services transactions.

“RBC’s decision to discontinue the issuance of $20 bills from our ATMs is a part of our digital transformation strategy,” Ms Missick confirmed. “Cash reduction is a key component in shaping how we operate in an increasingly digitised and rapidly-changing world.

“Before making this business decision, we examined the usage of our ATMs and discovered a very low percentage of clients withdrawing $20 bills. Clients can access any denomination from inside the branch despite only issuing $50 and $100 bills at the ATM.

“Additionally, we encourage clients to use their debits cards for smaller purchases at point of sales (POS) devices. We recognise more clients are seeing the advantages to completing their day-to-day banking transactions digitally, as we continue to see this digital adoption grow, especially during the pandemic.”

Some observers, though, will argue that RBC is also benefiting financially from digital banking drive as it will earn increased fee income from increased usage of debit and credit cards by its clients.

And the move, which was initiated over a month ago, is also drawing displeasure from RBC clients as social media reaction starts to catch up and gather pace. One commentator said: “RBC sucks”, while another added: “I guess they want all of their customers to use debit cards instead.”

RBC ATMs have posted on them “$50 or $100 notes only”, as the bank dropped the change on clients suddenly and without any forewarning of its intentions. The notices have been in place for at least a full month now, but the social media outcry only peaked this week.

Another Facebook user said: “That’s horrible, RBC needs to get it together.” However, other commercial banks have also moved to increase their income. Commonwealth Bank told customers from late August that it is charging a fee for each ATM withdrawal on New Providence of $5.60, with $5 going to the bank and $0.60 in VAT to the Government. The fee for Family Islanders is higher.