Economist: Traditional Physical Banks Not Viable for Family Islands

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NASSAU, BAHAMAS – There’ve been countless complaints from family islanders over a lack of banks in those communities, but it seems they’ll not be returning to some family island communities.

Economist and Fidelity Bank and Trust Chief Executive Officer Gowon Bowe tells Our News it’s just not viable, especially with the world moving to digital banking.

As the world evolves, so is everyday banking.

But with multiple banks and branches across New Providence, Abaco, Eleuthera, Grand Bahama and Exuma, it seems more and more family islands are being left out of the conversation.

Economist and Fidelity Bank and Trust Chief executive officer Gowon Bowe says as it stands, banking may not return to the family islands that have ben without physical banks for quite some time.

Bowe shared that in the United States, less than 15 percent of transactions happen with cash.

He believes there needs to be greater education on digital banking.

Family islanders have long complained about the absence of physical banks on the islands.

The government have joined the conversation hoping to find ways to fix the issue, but Bowe shares another perspective, the cost to keep these banks open.

“If you think about a physical presence there’s rent. There’s a staffing that’s required. If this is a cash-holding facility, then they have to build a vault. They have to have a certain minimum number of staff for dual custody when they are accessing etc. So a much larger staffing complement. The reality is a deposit or placing money in the bank does not allow the bank to earn revenues to pay for all of those expenses, it’s really about business,” Bowe said.