The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Long Island businesses are “in a helpless state” after the exit of all commercial banks, the island’s chief councillor revealed yesterday, amid fears that it will become “a banking desert”.

Ian Knowles, exposing the challenges facing Long Island residents and companies following the departures of Scotiabank and Royal Bank of Canada (RBC), told the island’s Business Outlook conference that he had yet to receive the credit card he had applied for in March yet was now paying fees on.

While Omni Financial Services, the digital payments provider, had helped to fill some of the vacuum created by the commercial banks’ branch closures, he added that Long Islanders still faced the prospect of a weekend without cash or access to services should Scotiabank’s Automated Teller Machine (ATM) go down on a Friday.

And Mr Knowles said the Government’s push to digitise public services is currently futile on Long Island because many of its offices lack the necessary technology to process debit and credit card transactions, instead relying still on cash.

“The closure of Scotiabank in recent months has left Long Island at a standstill, especially the business community, without being able to do deposits and other transactions. Imagine Long Island, right after the banks closed, there was talk of going to Nassau or Exuma to make deposits,” the chief councillor recalled.

“Thankfully, Omni stepped in to fill some of the needs businesses experienced. But when it comes to personal banking, for both Scotiabank and RBC clients, there’s little to no personal banking. Can you imagine living on Long Island right now when the ATM goes down on a Friday and does not come up till Monday? The whole weekend you are without any type of services or cash.”

Mr Knowles, adding that his efforts to obtain a new credit card are now into their eighth month, continued: “I’ve had experience recently of trying to get my card from Scotiabank. Could you imagine from March to this month of November and still not getting the credit card you are paying for? That’s how difficult it is in Long Island.”

Pointing to the negative impact on Long Island businesses and the wider economy, as well as the island’s ability to compete for foreign direct investment (FDI), the chief councillor added: “Banking is an issue we have been fighting for some time.

“We’ve been trying to see if Bank of The Bahamas could come in and assist us, but to no avail so far. It has left us in a helpless state. Most businesses will allude to that later. Without proper banking infrastructure a business will die.”

Warning that the Government’s digitisation ambitions are a long way from being realised on Long Island, Mr Knowles said: “There are not many government entities that are cashless. Most of them are still cash [based]. You can imagine that the Government is pushing their agenda, but they still don’t have debit or credit card machines in their offices.”

Adrian Gibson, Long Island’s re-elected MP, who also participated in the Business Outlook conference, voiced fears that his constituency will become “a banking desert” or “unbanked” while promising to renew the push for Bank of The Bahamas to establish a branch.

And, while digital financial services held promise for resolving the situation, he argued that Long Island’s general lack of high speed Internet connectivity as well as an elderly population that was computer illiterate, were obstacles that need to be overcome.

“I’m concerned about the banking situation on the island,” Mr Gibson said. “Scotiabank pulled out some years ago but they left a functioning ATM that islanders continue to use. Royal Bank pulled out before that. Omni has sought to replace them.

“We know banking in The Bahamas is changing. We see banks’ bricks and mortar closing throughout the Commonwealth. I’m very concerned about the devastating impact of lack of access to financial services upon my people in Long Island.

“Most certainly I’m very fearful Long Island will become a banking desert. We desperately need financial inclusion and, as I’ve said in many instances, Long Island cannot be unbanked,” Mr Gibson continued.

“While we move banking to an online business model, we must recognise that we have the business community and the elderly that could be affected immensely. We have a large elderly population, who lack digital literacy and are not computer savvy about doing business online.”

This, Mr Gibson said, “coupled with poor Internet connectivity makes accessing digital financial services difficult for my constituents”. He added that he had written to then-deputy prime minister, K. Peter Turnquest, and the Bank of The Bahamas chairman when the Minnis administration was in office urging the bank to establish a Long Island branch but no action was taken.

“I will continue to pursue that option in the coming days, weeks and months,” the MP added, “because I believe a physical presence on the island will bode well for my people.”