Shaw mulls best mobile-banking mode for Jamaica
Published:Saturday | December 11, 2010 | 12:00 AM
Finance Minister Audley Shaw says the Government is now studying the various models of mobile banking available to determine the platform's viability in order to develop the appropriate policy framework in Jamaica.
"The Bank of Jamaica has already had fruitful discussions with officials of the IADB (Inter-American Development Bank), and more technical discussions with a firm offering consultancy in mobile payment services," he said in his keynote address during the Mobile Financial Services Conference at the Terra Nova All Suite Hotel yesterday.
"The bank's research also reveals that this is a matter that many regulators, even in developed nations, are studying," he added. "The potential risks can be enormous, and the framework must address these in a comprehensive manner."
Several of the large players in the sector currently offer the service, which allows customers to do basic transactions using their mobile phones. The service has become quite popular in other parts of the world, in particular poorer states.
Haiti is the most recent country to utilise the service.
With the expectation that customer usage of online and telephone sales will reach 20 per cent by 2015, from a low of eight per cent in 2005, experts are predicting that bank branch services will fall to 61 per cent from 79 per cent by 2005.
Mobile penetration rate
According to the most recently published telecommunications industry report by the Office of Utilities Regulation, mobile services provided by the three major players together accounted for 2.88 million subscribers - a penetration rate of 107.87 per cent.
According to the minister, this provides an opportunity for stakeholders to expand their services, not only to existing customers, but to the unbanked and underserved.
"The benefits of expanding financial services through mobile banking will, in my opinion, assist small and large businesses in making and receiving payments in a more effective and speedy manner, as well as allow government benefits to be delivered more efficiently, and potentially at a lower cost."
The conference was held to provide a forum for local and overseas mobile-banking experts to engage key local stakeholders and potential partners, and to prepare an implementation strategy to develop mobile commerce in Jamaica.