GUYANESE are looking forward to the reformation and integration of the local remittance market which should see them receiving money sent by relatives and friends in a much faster, efficient and safer way.

Pooling efforts to make this a reality are the Ministry of Finance and the Bank of Guyana (BoG), the latter of which has been tasked with executing the recently launched National Payment System (NPS) development plan.

The plan will see the upgrading of laws, regulations and infrastructure to improve monetary transactions locally and will be implemented in a number of stages towards a forecasted 2030 completion.

A key part of the development plan is to facilitate Guyana’s transition from cash and paper-based instruments to electronic means of transactions, through which recipients of remittances will greatly benefit.
The BoG had reported that in 2015 remittances accounted for 9.3 per cent of the country’s Gross Domestic Product (GDP) and it still today the second largest source of foreign exchange in the country.

However, factors such as the high cost of sending remittances, physical access to remittance services, limited competition on the market and the absence of legal and regulatory frameworks governing the industry continue to hinder the type of service Guyanese receive.

According to the World Bank in 2016, the average cost of an in-bound remittance from the US to Guyana was 8.7 per cent, which rests above the global and Latin America average of 7.6 per cent and 6.0 per cent respectively.

In addition to cost, the developmental plan states that it takes an average of 20 minutes for remittance customers to reach an agent location for transactions, which is longer than it takes the average resident to reach an ATM or bill collection office.
This indicates that despite the importance of remittances to the country’s economy, there are still very few agent locations.

Meanwhile, contributing to the aforementioned factors of cost and limited access is believed to be a lack of competition whereby two remittance companies, Massy Group and Grace Kennedy, dominate the local market.
Through the Bank of Guyana, the government intends to ensure that remittances can be distributed rapidly and conveniently by introducing electronic means for locals to send and receive money.

The use of cards and e-money-based remittances as well as the integration of the remittance market with the broader retail payment industry are some of which the government hopes to achieve with completion of the plan.

Taking to the streets of Georgetown, the Guyana Chronicle interacted with several public citizens who all expressed their anticipation for such a change over.
According to one man by the name of Dexter, utilising electronic means to receive remittances will help persons to save time.

“I feel it will be beneficial to them, especially the ones that are doing business. Sometimes you might need the money and you might not meet [to an agent] in time because of a situation you get caught up in… so having it come on your credit card, I feel it’s something good,” he said.

While stating that the plan is a good one, a woman, Shaneza Sadick recommended that the authorities pay special attention to the elderly who may not be as tech savvy as the younger generation.

“It will be easier for you, but then you got to look at the old people who don’t really know about the computer systems. How will they get the money if their children send money for them? The government needs to include something for the older folks, teaching them how to use online business,” she said.

With assistance from government, the BoG has plans to conduct training programmes which will build consumer confidence and awareness about electronic transactions as the plan moves ahead.

As a part of ensuring that Guyanese receive improved services in the future, the BoG has also indicated that it will seek to ensure that local remittance services comply with international, general principles.