HGP Nightly News – Finance Minister Dr Ashni Singh has delivered a blunt message to customers unhappy with bank fees or service: Guyana has several commercial banks, so customers are free to take their business elsewhere.
Singh made the comment as concerns continue to surface over new and increased charges being imposed by some local commercial banks.
“If you feel that one particular bank is charging you fees that you would not be charged elsewhere, feel free to move,” Singh said during a recent media interview.
He said customers should also consider switching if they encounter difficulties opening accounts or feel they are not receiving the level of service they expect.
Singh acknowledged that banks are operating within the existing regulatory framework, but said the Government would be prepared to examine specific cases where charges are considered particularly oppressive.
His broader argument is that competition should ultimately give customers more leverage.
Singh said Guyana’s banking sector is now seeing banks compete more aggressively for customers, including by offering incentives to persons who move mortgages or other business from one institution to another.
He pointed to instances where banks are offering lower mortgage interest rates and waiving fees when customers transfer their business.
For Singh, that kind of competition is evidence that banks are recognising they must compete not only on interest rates, but also on fees, service, convenience and how customers are treated.
The comments come against the backdrop of the Government’s push for greater financial inclusion and increased use of the formal banking system.
Banks have expanded digital services in recent years, including online account opening and electronic transfers between individuals, businesses and government.
Singh encouraged customers with online banking access to make greater use of those services, noting that funds can now be transferred between accounts and across different banks almost instantaneously.
He pointed to the Government’s recent G$100,000 cash grant as another example of the growing importance of having a bank account.
The first phase saw almost 49,000 government employees receive the grant through their salaries and bank accounts. Nearly 400,000 other people subsequently registered through an online portal and received the payment directly into their accounts.
A third group of recipients who did not have bank accounts received the grant by cheque.
Singh said the different payment methods had brought the number of people receiving the grant close to 600,000.
