Globally, an estimated 57 per cent of banking customers use their mobile devices to make transactions and access banking services. This is a result of recent technological advances that have changed the banking world. Instead of opening more physical branches, banks have shifted their focus to building and enhancing their online platforms especially as more people get cell phone and internet access.
Some banks are even closing branches and encouraging customers to use online banking that provides them with 24/7 access to their money. This has resulted in a rise of mobile payment systems like M-Pesa, one of Africa's most successful mobile money services and the region's largest FinTech (Financial technology) platform.
In India, it is now possible to pay for almost anything using a mobile app or QR code as the Unified Payments Interface (UPI) has been fully implemented throughout the country.
In TT the Central Bank (CBTT) is putting in place a mobile payments system that works like India's (UPI). CBTT expects a national fast payments system would benefit everyone, making it fast, simple and safe for people to send money using their mobile devices. The system also has the potential to bridge the financial access gaps that still exist.
In 2023 it was found that only 75 per cent of people in TT have bank accounts, down from the 81 per cent recorded in 2018. This, according to the TT International Financial Centre (TTIFC) National Financial Inclusion Survey Report (2023), is a result of several factors.
Many people lack the necessary documents to open a bank account and are worried about the cost of bank fees. And although almost half of the population lives within 15 minutes of a bank or ATM, a high level of financial exclusion was seen in southern municipalities, with 33 per cent recorded in San Fernando and 30 per cent in Penal/Debe.
Overall cash remains king, with 63 per cent of all financial transactions nationwide being done in cash.
However, a new data report shows that as of September 2024 there were two million site visits to all of TT’s online banking platforms. First Citizens Bank garnered around 34 per cent of all visits and Republic Bank, JMMB, and Scotiabank had between 18 per cent and 21 per cent.
Despite the heightened activity, customers still have reservations about online platforms. TTIFC’s National Financial Inclusion Survey 2023's qualitative focus groups found people were worried about the switch to digital banking, expressing concerns about issues like security and personal data violations.
A worldwide poll by Ernst and Young (EY) in 2023 found cyber crime to be the biggest threat to the world's banks. CBTT says banks and other financial institutions in TT that offer digital banking services must follow the law to protect customers, ensure compliance and keep information safe. The Banking Act governs what banks in TT can and cannot do, and includes regulations about their licensing, control, and compliance. As the main financial regulator, the CBTT instructs banks to follow laws
