…Min Jordan clarifies that current issues not related to lack of money
…chides bank for not having a ‘Plan B’

By Navendra Seoraj
REPUBLIC Bank Guyana has been heavily criticised over the past few weeks by its customers because of “inefficient” services which are being offered by the bank, especially since its transition to a new banking platform early this month.
As the complaints continue to pile up against the financial institution, Minister of Finance, Winston Jordan sought to give some clarity to what is going on with Republic Bank’s systems.

“The situation has to do with their (Republic Bank) IT (Information Technology) systems and not a lack of money… the issues is the ability to get the money on time and in a manner that other banks are offering a service,” said Minister Jordan during an interview with Social Activist Mark Benschop on Benschop Radio, on Tuesday evening.

Republic Bank had transitioned to its new banking platform on November 4, 2019. The company, in a press statement subsequent to its transition, had said: “as with the introduction of any new system, we are experiencing some challenges. We recognise the impact to our service delivery and wish to assure you, our valued customers and stakeholders, that we are committed to resolving these challenges in the shortest timeframe possible.”

Minister Jordan has also confirmed that the bank is doing everything possible to make the transition to the new system less onerous than it is at the moment. “I do not know that they can do much more beyond what they are doing, but it is not a case that they do not have money…it is just the IT problem and the change-over to a better system,” said the minister.

Although the bank has been working to rectify the problem, Minister Jordan said the company should have established a contingency plan or “plan B” from the inception.
With the absence of a plan B, he believes that the company will begin to “feel the pressure” because the current inefficiencies will result in fallout between the bank and its customers, who might even switch to other banks.

“Well, as I said, they know unless they come good they will lose some of their customers…I do not think customers will stand for long lines and frustration…Republic Bank will have to do a selling job to maintain their customers because it is not as if Republic Bank is the only bank in town, customers have a choice…Republic Bank has to do all they can to make certain customers do not exercise that choice of leaving the bank,” said the Finance Minister.

He also believes that the inefficiencies in Republic Bank’s IT system justify government’s decision to deny the application for Republic Financial Holdings Limited, the parent company of Republic Bank Guyana, for the purchase/acquisition of the operations of Scotiabank in Guyana.

Minister Jordan said: “our position of not having them take over Scotia proves to be a correct one…I do not think their IT structure that they have could have handled such a merger…this is one of the reasons the governor told me they could not accommodate them together.”

Governor of the Bank of Guyana, Dr. Gobind Ganga, was reported as saying that Republic Bank’s application was denied owing to concerns about “concentration” and “competition” which would have negative impacts on the country’s financial system. Dr. Ganga said had Republic Bank been allowed to forge ahead with its planned takeover of Scotiabank’s operations here, it would have resulted in systemic effects.

Meanwhile, in response to the current inefficiencies, Republic Bank had apologised for the inconvenience caused to customers as it transitioned into a new banking platform. “We do apologise for any inconvenience caused and take this opportunity to sincerely thank you for your patience and understanding during this transition. We thank you for choosing Republic Bank and assure you of an enhanced customer experience as we look forward to being of continued service in the future,” said the company.