Dear Editor,
I write on the state of the financial services industry in Guyana noting yet again that consumers are complaining bitterly on social and other media regarding monies missing from their accounts, mediocre services at financial institutions, etc. I write because these complaints are symptoms of wider issues which governments over the last 20 plus years have yet to address. The standard of services provided by banks in Guyana are far below that provided by similar institutions across the globe. We are even way behind those in our own region – the Caribbean, not to mention the entire South America. Permit me to underline a few examples of areas that need urgent attention. We are still forcing our working population to have to take time off from work to go deal with banking issues because of our prehistoric closing times. This carries a cost for employers, and in some cases employees as well, since the time taken may be deducted from their annual leave or sick days.
Non-teller services most of the time require at least an hour, if not several hours, of waiting before you reach the customer service representative. Even then, simple things like being provided with a replacement card, filing fraud claims, getting a new cheque book, etc. still take way too much time. Online banking services, while they may be able to do some things, fall far behind what 21st century banks offer. The penetration of card machines and debit/credit card usage is still woefully slim (though kudos to Scotia for offering a cashback credit card); many vendors still do not accept all types of cards, which is pitiful given the influx of foreigners we’ve been seeing these last few years. We always seem to be decades behind even when we do upgrade our systems.
I am highly concerned as well, Editor, that we put up with as much substandard services as we do in this country because we lack options. Right now, RBL is the dominant bank in the country, ashamedly so. We are yet to see a new bank open its doors in Guyana for decades. Competition is sorely lacking, which has caused complacency with our existing banks. As a result, not only are we faced with poor services, we also lack variety in the types of financial services available in the country. Most Banks elsewhere have financial advisors that counsel and assist the customers to achieve their financial goals. For example, if you have some money, which you do not wish the keep in a low-yield savings account, financial advisors go through available options with you – low-interest fixed deposit accounts, protected indexed funds in which you can invest, and of course, riskier investments for those who wish to take it. You can invest in funds that focus on only government bonds, or you may want to invest in something indexed to the non-oil market; some may like to focus on more “green” instruments. The point being made is that there are options out there and the financial advisor explains the pros and cons of each so that the client can make decisions best suited to him or her.
The depth of what a developed financial services industry can offer does not exist in Guyana, or at least, not at the scale it should. So what happens? Ponzi schemes happen, people keep their money in their mattress (and get it stolen; this is a real example), people get convinced to invest in illegal activities (many times which include bribery), they are convinced to lend it to some John Jones and who promise them land or something else and never see their money again, their own families take advantage of them. We have hard-earned savings, but not many options to make those savings work for us.
Editor, financial literacy among the general population needs to be improved. And that is not just from the banks’ end but also from the regulator’s end because the banks will educate you enough to buy their products, but it is the regulator that needs to go the extra mile to educate the population about what to look out for. What we do not need is people making poor decisions which lead to Courts or a bank coming to take away their things because they were unable to make payments (which happens). Households need to learn to budget properly, they need to learn how to scrutinise the products offered by banks, they need to learn to shop for loans (auto or home or other), they need to learn what their options are to manage and grow their wealth, they need to learn where to not invest their money (how to spot a ponzi and/or “shady” business ventures), they need to learn how to make complaints when their monies go missing from their accounts. What we do now is not nearly enough for our fellow citizens.
Last but not least, it is clear that a proper vision for our financial services industry is absent. We are yet to hear what we can expect this industry to look like in 2 to 5 to 10 years from now. It just seems to be languishing and left to its own devices. Maybe what we need is a substantive finance minister who cares for the entire portfolio of the Ministry of Finance and not seemingly just the bits and pieces of political priority. It is time the Bank of Guyana shows leadership as well as some level of autonomy. It is my fervent hope that the BoG finds its backbone sometime soon. We need leadership that jumps in leaps and bounds if we are ever going to create this wonderful vision of a Guyana that offers “world class” services as His Excellency has touted for us. And the leaps and bounds to which I refer, to be clear, means catching up to the rest of the world, to what they are now, as opposed to “catching up” to what they were 5 or 10 years ago. Maybe it is time for fresh leaders of competence at the helm of these key institutions and not just a recycling within the “old boys’ club”.
Sincerely
(Name and address provided)
