Imbert: Time for Trinidad and Tobago to go cashless

FINANCE Minister Colm Imbert is supporting moves by the TT International Finance Centre (TTIFC) to push Trinidad and Tobago towards becoming a cashless society.

He spoke on August 20 at the launch of the National Financial Inclusion Survey Report (2023) at Tower D, International Waterfront Complex, Wrightson Road.

Financial services ombudsman Dominic Stoddard revealed 21 per cent of the population still does not use the formal banking system.

TTIFC CEO John Outridge said it is important to reduce that number, as increased financial inclusion is directly linked to a reduction in poverty and inequality.

“Financial inclusion provides opportunities for marginalised and low-income individuals to access formal financial services, such as savings, credit, and insurance. By empowering them with the tools to manage their finances and invest in income-generating activities, financial inclusion can help lift people out of poverty and reduce economic disparities.”

Pointing to a study by credit-card company Mastercard in TT and Jamaica, Outridge said financial inclusion also promotes economic growth, as people can participate actively in the economy when they have access to financial services.

“Excess dependence on cash transactions in the economies of both TT and Jamaica was slowing economic growth by stimulating informality, increasing fraudulent activities and limiting financial inclusion. The study argued that the TT economy could grow by an additional 3.5 per cent if the country increased its electronic payments by 30 per cent over four years.”

He said the study claimed while cash was once a positive driver of economic growth, it has now become a constraint and generates additional costs.

Imbert noted on a recent trip to Denmark, he realised the majority of stores were cashless, and one store was even unable to provide him with change, as there was little cash in the cash register.

Pointing to the safety of going cashless, he said there is a collaborative move among government ministries to push a transition to a cashless society.

Noting the importance of retailers in this transition, Imbert said, “The Ministry of Trade and Industry (MTI) is modernising its national e-commerce strategy to create an environment that facilitates and promotes e-commerce for local businesses to serve domestic and international markets.”

He added, “The Ministry of Finance, through our agency, TTIFC, has been working closely with the MTI to support the development and promotion of e-payment channels within the state, emphasising the facilitation of e-money and cashless transactions adoption.”

The transition will not be an easy one, though, as Stoddard pointed out some major challenges facing stakeholders.

He said trust in financial institutions is a major contributing factor, while a Central Bank survey showed 44 per cent of the country has a low financial capability and 35 percent of adults have been victims of financial fraud.

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