Banks will have to roll out new tools to innovate services – VP Jagdeo

As part of an aggressive plan to innovate the local financial sector in the new term, the People’s Progressive Party/Civic (PPP/C) regime plans to pressure commercial banks in Guyana to introduce new tools that would make banking services more accessible and efficient.

“We’re going to pressure the banks – using the Central Bank and the financial sector reforms – to pressure the commercial banks to introduce new tools… that would simplify banking services and make people get financing easier,” Vice President (VP) Bharrat Jagdeo disclosed during a recent press conference.

The governing PPP/C has outlined ambitious plans to roll out a series of financial vehicles to support various categories of citizens in its next term in office. This, coupled with initiatives for the innovative transformation of the country, requires the local banking sector to catch up.

“I’m really looking forward to the financial sector innovation that would transform this country: simplifying transactions from your phone. You can open up bank accounts from your phone. Just imagine, people who live in the hinterland or anywhere on the coast; you don’t have to go into the banks and all of that… I’m anxiously waiting for us to roll out this. We’ve been planning for this,” the VP stated.

Jagdeo pointed out that while there are so many companies supplying this financial technology service, the Government prefers to have the local banking sector innovating their operations.

Previously, VP Jagdeo had lamented on the current state of the financial sector and the need to “drag it out of the Stone Age”.

As Guyana undergoes an unprecedented economic transformation, there have been steady complaints about the largely old-fashioned and archaic operations at the various commercial banks in the country.

In addition to citizens’ complaints, the local private sector has also been calling for the financial institutions to update their systems to meet the evolving needs of Guyana’s growing economy.

Only in February, the Georgetown Chamber of Commerce and Industry (GCCI) stated that the country’s financial sector is in dire need of modernisation and urged local financial institutions to streamline updated systems that cater to the evolving needs of Guyana’s growing economy.

“The challenges being experienced by the business community that is heavily reliant on the financial sector include delays as a result of the paper-based and bureaucratic systems, as well as challenges in access to finance—which includes access to capital as well as access to foreign exchange,” the GCCI had said in a statement.

According to the Georgetown Chamber, Guyana’s development and improvements to the ease of doing business cannot be treated apathetically and must be regarded in a conscientious manner, especially given the interlinked nature of the financial sector and the country’s economic development.

“It is therefore imperative that the Bank of Guyana take up the mantle on addressing the existing gaps as it relates to the demands of the economy and business landscape and the ability of the banking sector to deliver the level and quality of services needed. In that same vein, the Chamber also urges local banks to examine the needs of the country and clientele and implement mechanisms to provide improved services,” the GCCI had noted.

On the other hand, local commercial banks are also being urged to be more aggressive and expand their lending portfolios.