Prime Minister, Dr. the Most Hon. Andrew Holness, says Jamaica must move quickly to having a fully digital financial system, which will make banking faster, easier cheaper and more inclusive.
“We have not moved fast enough on this matter,” he said.
“We took a step, we invested in JAM-DEX (Jamaica Digital Exchange). One would have thought that by now, the take-up and use of JAMDEX would have been much more than it is. One of the reasons why I have appointed a Minister for [Digital Transformation] is to ensure that it happens. There are just too many excuses, too many interests that are divergent. It is not in Jamaica’s interest not to have a fully digital financial system, and whatever it takes to get it done, Minister, you have my 100 per cent support. We must get it done,” he said.
Dr. Holness was addressing the launch of the World Bank Report on Digital Financial Inclusion and Transformation in Jamaica at the Banquet Hall, Jamaica House on April 23.
A fully digital financial system refers to an ecosystem where financial services, are delivered, processed, and settled entirely through electronic means, removing the need for physical cash or in-person branch visits.
Dr. Holness also pointed to the need for banks to lower online banking transaction costs to get more people to use digital payments and move away from relying heavily on cash.
He said that transaction costs are much too high.
“Digital platforms, online banking, electronic transfers, mobile application, and Jamaica’s JAMDEX system should be making transactions faster, safer, more convenient… and cheaper… transaction costs must go down. I should not be considering the cost of transferring money online,” he said.
“Governor of the Bank of Jamaica, if we use the RTGS (Real Time Gross Settlement System), we shouldn’t have to consider a cost… and I think this is where the effort really needs to be focused on – digitisation for financial inclusion,” he said.
While noting the need to complete the legislative framework, the Prime Minister suggested the use of moral suasion to ensure that digital transformation moves quickly and with it the promise of faster more convenient transactions and cheaper transactions.
