The Tribune

By LYNAIRE MUNNINGS

Tribune Staff Reporter

lmunnings@tribunemedia.net

EXUMA and Ragged Island MP Chester Cooper has warned commercial banks that they have an obligation to serve Family Island communities, declaring that institutions which “profit handsomely” in The Bahamas cannot leave residents behind as Exuma grapples with worsening access to cash.

His comments come as two of Scotiabank’s ATMs on Exuma have reportedly been out of service for months and Sandals Emerald Bay prepares to restrict public access to its ATM from August 14, further reducing options for residents who need cash.

Mr Cooper said he has been in active discussions with Scotiabank chief executive Roger Archer about the bank’s ATM network on Exuma and has been assured that the problems will receive attention.

“Scotia pulled its physical presence several years ago,” he said. “They continue to maintain several ATMs on the island, and the service has not been up to the standard that Exuma deserves, and therefore we have been in active dialogue with the bank to ensure that that service improves, and we have been reliably advised that it will receive attention.”

Mr Cooper said banking access has been a problem across the Family Islands for years and pointed to Fidelity Bank’s entry into Exuma and RBC’s presence as potential ways of filling some of the gap left by Scotiabank’s withdrawal of its physical branch.

The immediate concern has intensified because Sandals Emerald Bay has announced that access to its ATM will be restricted.

Under a notice issued by the resort, the machine will be limited to resort employees, registered homeowners and their guests, Grand Isles team members, authorised contractors and approved vendors.

Exuma Chief Councillor Glenn Davis told The Tribune residents were “pissed off”, saying some people travel long distances to use the Sandals machine.

Mr Davis said Sandals security officials told him the restriction was intended to pressure Scotiabank to properly maintain its ATMs after the resort’s machine became heavily used by members of the public.

“You can’t provide a service and don’t maintain a service,” he said.

A Sandals representative declined to comment when previously contacted by The Tribune.

Scotiabank customer Joan Rolle, of Jimmy Hill, described banking services on the island as “absolutely terrible”.

Mrs Rolle said repeated ATM failures have forced some residents to find informal ways to access cash, including transferring money to another person’s account in exchange for cash.

She said some residents also use Island Luck accounts to transfer money so another person can withdraw it and deposit the funds into their bank accounts for bill payments.

The Gaming Board recently warned that gaming accounts must not be used to receive or hold money for other business or commercial purposes and said misuse could lead to investigations and regulatory action.

Mrs Rolle said she sometimes uses a Royal Bank ATM but must pay a $5 fee. She said the shortage of functioning banking services has also made it difficult for residents to make deposits and pay bills.

Former Free National Movement candidate Debra Moxey-Rolle said the ATM dispute highlighted a wider decline in banking services on the island, particularly following recent electricity and communications outages.

Mr Cooper said yesterday that the Davis administration is also pursuing alternatives such as agency banking, the Sand Dollar and digital wallets to improve access to financial services, particularly in communities without physical bank branches.

“Suffice to say, banking is critical for all of the islands of The Bahamas,” he said. “There are still some islands without a physical presence. The government is making some initiatives, for example, agency banking, for example, the Sand Dollar, digital wallets from many of the companies in the Bahamas to ensure that some of the burden is lifted.”

Mr Cooper said commercial banks must recognise that their responsibility extends beyond New Providence and Grand Bahama, particularly as Family Island economies attract investment and expand.

“I say to all of the banks in the Bahamas that there is an obligation to all of the country,” he said. “The country is comprised of more than just New Providence and Grand Bahama, and I encourage the banks to continue to be aware that all of our Family Islands are growing robustly.”

He said significant foreign direct investment had contributed to growth in many Family Islands and increased the need for reliable banking services.

“We've been effective in attracting significant foreign direct investments, and therefore we are seeing magnificent growth in many of these Family Islands, and they require service,” he said. “It's an obligation, I believe, for institutions who come to profit handsomely in our country to also recognise that we don't leave any of our citizens behind.”

The controversy comes amid wider criticism of banking access and service quality in The Bahamas. Foreign Affairs Minister Fred Mitchell has previously criticised delays in opening accounts, rising fees and other banking practices and suggested legislation may be needed to strengthen regulation of commercial banks.