By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A senior Royal Bank of Canada (RBC) executive yesterday hailed The Bahamas as “a bit of a bellwether” for the Caribbean on digital payments adoption with more than 50 percent of its local clients now using such channels.

David Hewick, RBC’s senior director of payments for digital and automation enablement, told a webinar organised by the bank to discuss The Bahamas’ electronic transition that this nation was “certainly leading the pack” in this process.

“Usage has grown rapidly and steadily across the region, but I would highlight the growth in adoption has certainly been stronger in The Bahamas,” he said. “We see more than half of our customers in The Bahamas use digital banking regularly.

“I would say that from 2017 to today, for example, we see a significant migration of our transactions and payments where they are done digitally or with a card... The number of non-cash payments has more than doubled in The Bahamas in particular. 

“We certainly see The Bahamas leading the pack in the region. A lot of the trends we’re getting into, The Bahamas is a bit of a bellwether for the region. That’s something to be proud of.”

John Rolle, the Central Bank’s governor, told the same webinar that reduced transaction costs and greater efficiency are the main advantages of switching to a digital payments structure. And, from a consumer perspective, the goal was greater financial inclusion and access, with Bahamians living in remote Family Island communities able to conduct bill payments and other transactions with the same convenience and cost as New Providence residents.

“The most important reason why we need to move more to the digital transformation is cost and efficiency. It’s cost and efficiency,” he added. “That’s what we have to be focused on. For The Bahamas, that means we need to be able to have it such that if you’re living in Acklins or Crooked Island versus New Providence, the cost or currency aspect of the transaction undertaken, whichever one of the financial institutions provides that service, it should be no more costly - and as convenient as - New Providence.”

While a 2019 Central Bank survey had revealed more than 90 percent of Bahamians have access to bank accounts, with 88 percent able to obtain savings facilities and 23 percent the chequing variety, Mr Rolle voiced scepticism that this provided a true picture of financial inclusion given the number of “undocumented” persons in society.

“We have to temper our understanding of what is a very high, in the mid-90 percent range, access to banking facilities with the undocumented population,” he added. A Central Bank research paper, released earlier this week, estimated that around 18 percent of The Bahamas’ total population may be unbanked or lack access to financial services.

“Financial inclusion is closer to the low 80 percent range,” the governor agreed. “That reflects what’s happening particularly in the undocumented part of the economy.... Depending on where you are in The Bahamas, some transactions are only complete when you fly to New Providence. That’s not the same level of inclusion that the numbers tell.”

And he also urged Bahamians to understand that there was a cost involved when it came to using and moving cash around the country. “I always make the comment in any forum that Bahamians need to understand when cash moves through The Bahamas it does not fly commercial,” Mr Rolle said.

“You’re getting dollar for dollar, but whether it’s the Government or a financial institution they have to charter a plane and security personnel to get the cash” to where it needs to go.