In keeping with the Government’s push towards digital transformation, President Irfaan Ali on Wednesday met with stakeholders from the financial sector to discuss modernising the local banking industry.

The meeting was held at the Office of the President on Shiv Chanderpaul Drive, Georgetown.

According to a brief statement from his office, “…Discussions focused on modernising the banking sector to address ongoing concerns faced by citizens and on plans to ensure commercial banks keep pace with the Government in implementing digital transformation.”

In six weeks, the stakeholder group is expected to present a report to the Head of State outlining what the financial sector requires to realise the Government’s vision for a digital economy.

Among the representatives present during Wednesday’s meeting were heads from various commercial banks, Governor of the Bank of Guyana Dr Gobind Ganga, Head of the Private Sector Commission (PSC) Gerald Gouveia Jr, and other stakeholders.

Speaking with this publication following the meeting on Wednesday, Gouveia Jr welcomed the steps being taken by the Ali-led Administration to enhance the local financial industry.

He noted that the President outlined his expectations, which include ensuring that every Guyanese has easy access to banking services and easy access to capital, while also reassuring of the Government’s commitment to doing what it takes to ensure the modernisation of the sector if it requires legislative and/or regulatory changes – something which the PSC Chairman lauded.

Gouveia Jr explained that the Head of State encouraged the commercial banks to invest in Artificial Intelligence (AI) and digitalisation mechanisms to enhance their operations and services. This was one of the measures; the PSC Chairman said that the private sector body supports it given the level of efficiency it would bring.

“As you know, efficiency is everything for businesses, so the faster we can get transactions done at the banks, the better it will be,” Gouveia Jr stated.

In addition to welcoming more investments by the banks in digitising their operations, the Commission would also like to see faster processing time in basic services like the opening of new accounts within 24 hours and improved access to capital.

Currently, the PSC operates a Business Support Desk that works with businesses, especially small and medium-sized enterprises (SMEs), to, among other things, prepare the documents needed to access loans from commercial banks and other financial institutions.

This initiative is a collaboration between the Commission and the Inter-American Development Bank (IDB). According to the Chairman, the desk currently has about a dozen small businesses and is looking to expand this number – something which he says would be better facilitated if there were a conducive environment within the local banking sector.

Meanwhile, the group of stakeholders present at Wednesday’s meeting is expected to hold multiple engagements over the coming weeks to streamline the report before presenting the same to the President in just over a month’s time.

Over the years, President Ali had criticised the local banking sector for failing to meet expectations in Guyana’s growing economy, challenging commercial banks to be more proactive in seeking out and facilitating investment opportunities locally and abroad.

According to the Guyanese leader, in a rapidly growing economy such as Guyana’s, the local banking sector needs to take more risks and not just take deposits and lend in a low-risk environment. He had noted that while some banks have been working with the Government to roll out some initiatives, the drive to match the accelerated pace of the local business community is not there within the banking sector.

Moreover, the Head of State had previously announced plans to amend the Financial Institutions Act to improve the overall banking sector in Guyana.