Jamaica’s Minister of Finance and the Public Service Dr Nigel Clarke has made his position clear on the contentious issue of rising bank fees imposed by the country’s commercial banks.

In order to offset escalating costs due to implementing technological advances in banking and pivoting away from a more traditional model to a more digital one, the commercial banks are placing the burden on their customers.

Septimus Blake, president of the Jamaica Bankers Association (JBA), has said that the pandemic has hurt many of the commercial banks, giving them little choice but to look to more digital avenues which will have to be paid for by customers.

CALLOUS DISREGARD FOR ECONOMIC CIRCUMSTANCES OF MOST JAMAICANS

Speaking on day two of the 17th Jamaica Stock Exchange Regional Investments and Capital Markets Conference, held at The Jamaica Pegasus hotel in New Kingston, Clarke said: “When it comes to the setting of bank fees, it would seem as if our commercial banks are tone-deaf. There seems to be a callous disregard, for the economic circumstances of a plurality of Jamaicans. How else do you explain that the banks have introduced a fee of $25 in one instance and $30.85 in another instance to withdraw your money from an ATM that they have put in place? And, if you use another bank to withdraw your money, its $60. Before this round of increases, it was free.”

He added: “I thought that the idea was to graduate customers from inside the banking hall to using the digital channels. How do you expect to do that, if you are going to charge people to withdraw their own money from an ATM?”

Clarke noted that, while the fees would not prove burdensome for those in attendance at the conference, “Jamaica consists of more than stock market investors and for those Jamaicans who are on an income of $15,000 a week of less, when you dock them $60 to take out their money that they got paid, it is a material amount”.

The finance minister stressed that Jamaicans on lower incomes should be made to feel comfortable with using banking products and be assured that their realities are taken into account in the way a bank designs and prices its products.

“They must have confidence that they are going to be treated equitably and fairly,” Clarke said.

‘I EXPECT BANKS TO BE RESPONSIVE’

“Now, we understand that banks have costs that have to be recovered and we understand that the capital investment required to make the transformation to the digital age is significant and those costs must be recovered. We understand that banks face the same costs that we all face – security costs are high, and other costs are high, and that a return must be made. But, they have to take into account that the economic and social structure of the country as prices are set; and at a very minimum there has to be break points for persons on lower incomes, who have lower balances.

“The banks have to be sensitive to the economic structure of the country.

“I believe in dialogue, and so I have called the banks in. I have spoken to them, and I expect them to be responsive. Because, the economic growth that we are after, is an economic growth that must be inclusive. An economic growth that everyone sees their interest in and that is why the jobs growth is so important.

“Those jobs are coming from construction, hotel, and BPOs; and yes the income levels in those jobs are what they are, but we celebrate those jobs and we celebrate those Jamaicans and we want them to feel comfortable and provided for in the Jamaica that we are building.”