The traditional commercial banks are the bedrock of countries’ financial services sector, but they seem to be lagging behind and out of step with the new and exciting developments in financial technology (fintech). With Wendy Delmar, the Chief Executive Officer of the Caribbean Association of Banks (CAB), and in this the latest instalment in our series on fintech in the Caribbean region, we discuss: how the CAB and its members view fintech;  why securing an online merchant account is still a challenge, especially for digital businesses; and  why commercial banks are blocking their customers from purchasing crypto.

 

This episode is also available on SoundCloud, Apple iTunes, Google Play Music, Spotify, Amazon Music and on Stitcher!

The Caribbean financial technology (fintech) space continues to be a beehive of activity, with new businesses and initiatives being announce seemingly almost every week. However, and as much as there has been considerable excitement in the potential of fintech to spur innovation and wealth creation in the region, the traditional, commercial banking sector is, to a considerable degree, being overlooked.

To many, the commercial banks not only represent the old guard, but also seem to be the source of the challenges that individuals and business alike experience when trying to manage their finances or conduct financial transactions. The banks seem too constrained by too many rules and regulations that ultimately seem to serve the banks, and not their customers or those they are trying to serve.

Having said this, and although commercial banks are nowhere near the cusp of the exciting fintech developments that have been occurring, they are evolving. More importantly, they are and will continue to be a critical touchstone in Caribbean countries’ financial services sector into the foreseeable future.

 

Introducing our guest

Wendy Delmar

Wendy Delmar brings over 20 years of experience in mainstream banking to the leadership of the Caribbean Association of Banks Inc. (CAB), having previously worked with Scotiabank. Wendy says that she is ever grateful for the opportunities for growth which allowed her to challenge herself and become a solid individual in the field of finance.

During her journey with the Bank, Wendy held progressively senior roles, having started her career in Retail Banking as a Teller, moving into Customer Service and then lending. From there, Wendy broke off into training, where she rediscovered her love for imparting knowledge, as she worked throughout the region implementing new technological enhancements to the banking framework. On her return, Wendy assumed the role of Home Mortgage Specialist with a focus on dealing specifically with the International Business portfolio. Wendy later joined the Managing Director’s Office in Barbados as Retail and Small Business Coach, a position she retained for 2 years before returning to Saint Lucia as the Branch Manager for the Castries operation. She later took on the role of President of the Bankers Association of Saint Lucia. Both posts she held until she joined the CAB in November 2018.

Wendy currently holds an MSc in Global Human Resource Management, which she believes deepens her passion for nurturing growth with the people she encounters daily.

 

Insights into our conversation

As an individual and business banking account owner, as well as someone who has travelled extensively across the Caribbean region, I have had first-hand experience in engaging with Caribbean banks, both as a client and a guest. One of the most noticeable changes that has occurred in at least the past 20 years, is the increased stringency and the added requirements that must be satisfied, in order to open certain accounts and/or conduct certain transactions. This posture has not only increased the barriers for individuals to become banked, but also it could be argued that it has hindered entrepreneurship and innovation in the region, which has been a particular challenge in the tech space.

The questions below, which we posed to Wendy during our conversation, seek to gain some into WHY commercial banks have adopted the posture they have. More importantly, she contextualised the role the banks play in the wider economy, and why risk – and even the appearance of risk – is a particular challenge to Caribbean banks, Caribbean countries and the region as a whole.

  1. To start us off, tell us a bit about yourself and the Caribbean Association of Banks. 
  2. How does the CAB and its members view the developments that have been occurring in fintech? 
  3. To varying degrees and across the region, electronic and online banking were only introduced in the last two years in some countries. Why is that? 
  4. Relatively speaking, Caribbean consumers are big online shoppers on platforms, such as Amazon, but local small business still find it challenging to secure an online merchant account, in terms of price, time and the resources they need to have. Why is that? 
  5. How do the commercial banks view cryptocurrencies, for example Bitcoin and Ethereum? 
  6. Can you explain de-risking?
  7. Are fintech businesses are financial businesses or technology businesses? 
  8. What role do traditional commercial banks see themselves playing as the world – even in the Caribbean – becomes more digital?  

 

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Also, if you or a member of your network is interested in joining us for an episode, do get in touch.

Let’s make it happen!

 

Below are links to some of the organisations and resources that either were mentioned during the episode, or otherwise, might be useful:

 

 

Images credit:  CAB; PIX4FREE; Jonathan Cooper (Unsplash); JamesQube (Pixabay)

Music credit: The Last Word (Oui Ma Chérie), by Andy Narrell

Podcast editing support: Mayra Bonilla Lopez