Chaotic and inadequate delivery of financial services

Sep 05, 2021 Letters

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.
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 still are 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.
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 to 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 depth of what a developed financial services industry can offer does not exist in Guyana, or at least, not at the scale it should. 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).
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.

Sincerely,
Atheria Adler

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