Unbanked Bajans ‘won’t reap digital payment benefits’

Too many Barbadians remain without a bank or credit union account, Minister in the Ministry of Economic Affairs and Investment Marsha Caddle declared in the House of Assembly Tuesday, suggesting that this could undermine Government’s efforts to roll out a digital payment system.

As she debated the National Payment System Bill to introduce the system, Caddle said it made no sense implementing technological advancements if a large portion of the population could not reap the benefits.

Caddle said “There are so many things that are required for it to take effect and this issue of financial literacy is one of them. One of the things that we discovered that we’ve known for some time is this issue of people who are unbanked or under-banked. So we are busy creating a system of technological capabilities and there are people who don’t have a bank account, people who don’t have a credit union account.

“So here is the issue. While we might say, ‘leave them alone they are good with their cash’, but they aren’t good because they don’t have the wherewithal to have any kind of financial footprint. It puts them in a difficult position when they have to establish a credit history, when they have to face a financial institution to try to get some kind of loan or just to interact with the world in terms of financial transactions, so the issue of being unbanked is one that we have to address.”

She said being banked was necessary for Barbadians to take advantage of a national payment system once it comes into effect.

Caddle maintained that large and small businesses and individuals would all reap the rewards of being integrated into a digital system.

She dismissed suggestions by Opposition Leader Bishop Joseph Atherley that micro-entrepreneurs such as coconut vendors could not benefit.

He had argued that only a “certain privileged bunch” would be advantaged by the initiative.

But Caddle countered: “I fear that we are trying to suggest that Barbadian people cannot absorb technology and participate. The Leader of the Opposition it seems to me is trying to box in Barbadians and say a coconut vendor will never be able to do what we are suggesting and I disagree.

“Where I agree is that we have to bring all Barbadians along and so it is not enough to be able to pass the legislation but we have to make sure that there is uptake of the technology and that is not a small thing.” (RB)