By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Central Bank yesterday launched long-awaited campaign to drive increased use of digital and online banking services by Bahamian businesses and households.

The banking regulator, teaming with the commercial banks and private sector, unveiled its ‘Pay fast, Live digital’ campaign that will be piloted first in New Providence and then expand to Grand Bahama and the Family Islands over the coming months. However, the Central Bank and its partners asserted that the move is not part of, or intended to achieve, the elimination of cheques as a form of payment.

Denise Turnquest, Commonwealth Bank’s president and head of the industry body, the Clearing Banks Association, said the initiative will help clients who have yet to embrace digital banking become more comfortable with the transition.

She added: “The Central Bank and the Clearing Banks Association have agreed, based on carefully conducted research, to provide an education campaign. What we have determined is whilst the world is embracing digital banking, there are some among us who are resisting embracing it and who have concerns.

“Usually those concerns are around elderly family members, elderly persons who are not tech savvy in our communities, and so this programme that we’re launching here today is really to address that.” Ms Turnquest said commercial banks have invested “heavily” in their digital banking platforms and cyber security to ensure electronic systems and the “public’s money” is safe.

She said: “We have invested heavily - millions of dollars - in our digital banking capabilities, and our objective is to deliver first-class products and services. This is because of the increasing use of mobile, online and card products globally. We want to make sure that, here in The Bahamas, we are keeping pace with the best that is available worldwide.

“The clearing banks are also investing heavily in cyber security. We are investing not only in cyber security but in testing the resilience of our cyber security individually, and as a unit, being the banking system, to ensure that all of our systems are safe from theft or damage and, by extension, that the public’s money is safe.”

Ms Turnquest maintained that the initiative will not “eliminate”, and cash added that Bahamian commercial banks are also investing in automated teller machines (ATMs) to allow customers more access to cash.

“Though the theme for this launch is ‘Pay fast, Live digital’, the future of pay is digital, but I want to allay any concerns that you may have around cash being eliminated. Of course, we are also investing heavily in ATMs and the ability for you to get access to cash without having to see a teller, and so we want you to rest assured that we will leave no one behind,” she said.

John Rolle, the Central Bank’s governor, said the regulator will use “objectively measured ways” to improve the ease of access to payments through digital channels, including streaming the speed and ease of commercial bank accounts.

He said: “This means ensuring that all individuals and businesses have the ability to open deposit and mobile accounts through which they can send and receive payments. It will mean, in the Central Banks view, very targeted regulation for a basic cost control transactional deposit account for individuals who have limited financial means.

“So it’s not for everyone, and more rules streamline the speed and ease of opening accounts, especially for businesses and organisations, because this is one of the business community peeves.”

Mr Rolle added: “As regard to the ease and cost of doing business online, the input from the business community is already helping to identify performance indicators that can be tracked. This includes making it easier to manage the limits that apply to online banking transfers, and enhanced capabilities to reconcile incoming electronic payments.

“There are also concerns about account maintenance charges, merchant fees and other transactions cost which infrastructure improvements will help us to tackle. Mr Rolle said the Central Bank is looking at developing standards around cheque services to identify more “transparent, consumer friendly” approaches to writing and cashing cheques.

Businesses will also be educated on the cost and benefits of using digital payments versus cheques. Mr Rolle said: “For businesses, emphasis will also be set on how to do more holistic cost benefit analysis on digital payments versus cashing cheques, around issues such as accounting and record keeping, physical safety and handling fraud.”