Govt to request banks to roll out new tools to innovate services – VP Jagdeo

– moves to “drag it out of the Stone Age”

As part of an aggressive plan to innovate the local financial sector in the new term, the People’s Progressive Party/Civic (PPP/C) regime plans to pressure commercial banks in Guyana to introduce new tools that would make banking services more accessible and efficient.

“We’re going to pressure the banks – using the Central Bank and the financial sector reforms – to pressure the commercial banks to introduce new tools… that would simplify banking services and make people get financing easier,” Vice President (VP) Bharrat Jagdeo disclosed during a recent press conference.
The governing PPP/C has outlined ambitious plans to roll out a series of financial vehicles to support various categories of citizens in its next term in office. This, coupled with initiatives for the innovative transformation of the country, requires the local banking sector to catch up.
“I’m really looking forward to the financial sector innovation that would transform this country: simplifying transactions from your phone. You can open up bank accounts from your phone. Just imagine, people who live in the hinterland or anywhere on the coast; you don’t have to go into the banks and all of that… I’m anxiously waiting for us to roll out this. We’ve been planning for this,” the VP stated.
Jagdeo pointed out that while there are so many companies supplying this financial technology service, the Government prefers to have the local banking sector innovating their operations.
Previously, VP Jagdeo had lamented on the current state of the financial sector and the need to “drag it out of the Stone Age”.
As Guyana undergoes an unprecedented economic transformation, there have been steady complaints about the largely old-fashioned and archaic operations at the various commercial banks in the country.
In addition to citizens’ complaints, the local private sector has also been calling for the financial institutions to update their systems to meet the evolving needs of Guyana’s growing economy.
Only in February, the Georgetown Chamber of Commerce and Industry (GCCI) stated that the country’s financial sector is in dire need of modernisation and urged local financial institutions to streamline updated systems that cater to the evolving needs of Guyana’s growing economy.
“The challenges being experienced by the business community that is heavily reliant on the financial sector include delays as a result of the paper-based and bureaucratic systems, as well as challenges in access to finance—which includes access to capital as well as access to foreign exchange,” the GCCI had said in a statement.
According to the Georgetown Chamber, Guyana’s development and improvements to the ease of doing business cannot be treated apathetically and must be regarded in a conscientious manner, especially given the interlinked nature of the financial sector and the country’s economic development.
“It is therefore imperative that the Bank of Guyana take up the mantle on addressing the existing gaps as it relates to the demands of the economy and business landscape and the ability of the banking sector to deliver the level and quality of services needed. In that same vein, the Chamber also urges local banks to examine the needs of the country and clientele and implement mechanisms to provide improved services,” the GCCI had noted.
On the other hand, however, local commercial banks are being urged to expand their lending portfolios.
Just two weeks ago, Senior Minister with Responsibility for Finance, Dr Ashni Singh, had implored the local banking sector to move away from the risk-free lending practices and be more aggressive in its offerings, especially to the private sector.
“The banking sector has historically been conservative, erring on the side of risk aversion, which is not necessarily a bad thing, because we want strong banks and strong balance sheets, and we want them to maintain good quality portfolios. But there is room, I believe, for the banking sector to be more aggressive in relation to lending to the Guyanese private sector,” Dr Singh asserted.
He was at the time interacting with representatives from a 19-member Jamaican business mission that were in Guyana on a two-day visit to explore potential investment opportunities here.
According to the minister, the Government has been working with the local banking sector to allow them to be more aggressive in their lending portfolio.
On the policy side, to facilitate this, Dr Singh explained that the Guyana Government has already enacted legislation specifically to allow movable assets to be accepted as security for loans.
“So, that legislation is enforced right now,” he noted.
Back in December 2024, the Security Interest in Movable Property Bill 2024 was passed in Guyana’s National Assembly with the aim of establishing a modern, comprehensive framework for secured transactions involving movable property.
Historically, the requirement for immovable property, such as land, as collateral made it extremely difficult for low-income individuals and small and medium-sized enterprises (SMEs) as well as vulnerable groups to obtain credit. This new law now transforms the lending environment and enables economic opportunities for all, thus creating a more inclusive and efficient financial system in Guyana.
The legislation simplified the use of movable assets, such as equipment, inventory, crops, intellectual property, and receivables, as collateral; streamlined the registration and enforcement process by establishing an Electronic Collateral Registry to replace outdated manual systems; and increased credit access for SMEs, women entrepreneurs, and individuals without immovable property, fostering financial inclusion and economic empowerment.