CASTRIES, St. Lucia, CMC – The St. Lucia-based Caribbean Association of Banks Inc. (CAB) has expressed concern at the frustration being felt by members of the public “regarding the onerous requirements and lengthy processing times of banking services throughout the region.”
In a statement, the CAB, known previously as the Caribbean Association of Indigenous Banks, said that these grievances, while commonly shared by private and commercial customers alike, appear more acute for business owners of micro, small, and medium-sized enterprises (MSMEs).
“Noting that the Caribbean is comprised primarily of developing countries in which MSMEs contribute significantly to economic activity, it is imperative that the region’s banking and financial services industry fosters an enabling environment to support these businesses.”
The CAB is encouraged by the efforts undertaken in various jurisdictions, such as the development of moveable-asset-based lending, which seeks to improve access to finance, particularly for entrepreneurs of MSMEs.
“Additionally, the increased utilization of technology to facilitate banking services has resulted in increased levels of efficiency with the need to stand in line at a physical institution greatly reduced.”
The banking group said that it is therefore encouraging the public to maximize the related options available, such as online and mobile banking, to conduct transactions when and wherever most convenient, which cover a wide range of solutions including but not limited to deposits, withdrawals, transfers between accounts to third party transfers, salary payments, payment of utility bills, wire transfers, top-ups, etc.
“However, it should be noted that the latter has been met with a degree of reticence from some customer segments,” it said, noting that as it continues to advance the dialogue related to the unintended consequences of de-risking, a key pain point that is anticipated to be remedied is the need to satisfy extensive requirements at new account openings with specific mention of commercial accounts.
“Given the detrimental and far-reaching impacts of financial exclusion, any activity that proves to be prohibitive, exclusive of those required to meet regulatory and compliance requirements, to an individual’s or entity’s participation in the formal banking system should be revisited as a matter of importance.
“A proactive approach to the just stated, which focuses on the mitigation of redundancies and the streamlining of processes, is therefore essential to enhancing customer engagement and loyalty,” CAB said.
It added that it remains committed to supporting the region’s banking and financial services industry and will continue to play its part in keeping the sector proactive, protected, and profitable.
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