Banks tasked to streamline easier account opening, loan access, online transactions

Banks across the country have been tasked with developing a plan that will simplify basic access and services to citizens.
That plan is due to be submitted to President Dr Irfaan Ali within four weeks.
Addressing a press conference on Tuesday, President Ali spoke about his recent meeting with stakeholders in the financial sector. Among the representatives present at that 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.
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.
A team has been established to accelerate the launch of the zero-interest development bank for Small and Medium Sized Enterprises (SMEs), according to President Dr Irfaan Ali.
The development of this institution was revealed by the People’s Progressive Party Civic (PPP/C) on the campaign trail. Dr Bharrat Jagdeo, the country’s Vice President and General Secretary of the PPP, had explained that the bank would be a state-led initiative.
Providing an update during his press conference on Tuesday, President Ali said the team has been tasked with developing an appropriate model for this bank.
“Their work will comprise reviewing global experiences and established SME development financial institutions; outlining the legal framework or context within which the institution will be established; and defining the institution’s administrative and financial structures that will be needed to support this initiative,” the President outlined.
He said feedback is expected in about six weeks.
It was previously reported that this development bank would not only offer zero-per cent interest, co-financing and support access to liquidity but also reduce the cost of borrowing and remove the collateral requirement, which is burdensome to SMEs.
According to President Ali, “They’ll be looking at making it easier for persons to open a bank account in terms of simplifying the documentary requirement, making borrowing easier by reducing the documentary requirement, especially from new businesses, and encouraging more lending using moveable assets for which the legal framework has been established…”
He noted too that the stakeholders were tasked with developing a plan to ensure they promote more electronic transactions via online banking and faster payment systems.
“…ensuring every Guyanese at the end of this whole modernisation can conduct a financial transaction within minutes from wherever they are,” the President emphasised.