Fintech ecosystem in TT

VERNON KHELAWAN

Minister in the Ministry of Finance Senator Allyson West has applauded the TT International Finance Centre (IFC) for its efforts in developing this country’s financial services sector. She said the IFC “leads by example in the area of compliance and in the concerted execution of a well-planned series of strategic initiatives.” In addition, she gave the IFC full assurance that her ministry pledges its complete support as far as financial technology (fintech) is concerned, asserting at the same time that “this is one area where innovation and not size, will dictate success.”

West was speaking at a stakeholder engagement session recently hosted by the IFC and entitled, Enabling a Fintech Ecosystem in Trinidad and Tobago. The open discussion centred around the future of the financial services sector in an era where technology plays the defining role. The session attracted a range of participants from diverse fields – government, regulators, the banking and insurance sectors, businessmen, entrepreneurs and ICT professionals – all expressing an active interest in the visible potential of fintech and the roles they can all play in contributing to its and their own development.

IFC chairman Richard Young said, “It is not a question of should we be embracing fintech, but how quickly we can integrate ourselves into an already fintech-driven world.” Meanwhile, IFC chief executive officer Omar Sultan Khan said TT was not the only country in the region exploring these opportunities. “Time is of the essence as we embark on this journey,” because several regional counterparts like Jamaica, Barbados, the Bahamas and the Cayman Islands have already started along this road, Sultan Khan said.

Similar thoughts came from Maria Daniel of Ernst and Young, who said, “It is more than diversifying our economy or maintaining our status as the financial hub of the English-speaking Caribbean; it’s about enabling the holistic development of the economy.”

Central Bank representatives informed the audience that development of guidelines and legislation to regulate fintech in TT is now going on, with a white paper on e-money scheduled to be out by year’s end. Meanwhile Gerard Thomas, founder and CEO of start-up facilitator Launch Rockit confirmed his enthusiasm to partner with financial institutions to find solutions to their problems and create more immersive customer experiences.

The IFC’s quarterly newsletter has said, “As the world becomes more tech-oriented and increasingly integrated, consumers are demanding services that fit into this new lifestyle internationally, investors have not been slow to take heed or recognise the opportunities the shift provides in the financial services sector. Today, fintech is a sustainable and expanding multi-billion dollar industry.”

And since the IFC has recognised the exponential growth of the industry and its unique opportunities, and in keeping with the company’s mission to diversify the economy through financial sector development, it has taken on the role of fintech facilitator in TT. The IFC has engaged Ernst and Young to conduct a feasibility study that will provide insights into global trends, identify local market potential and target specific niches within the sector where TT will have the competitive edge.

The quarterly newsletter adds, “Technology is the great democratiser of this generation and provide opportunities for those who previously would not have had them. On a global scale, wealth management, loan and investment services are already becoming more accessible to the average person through platforms like Robinhood, GreenSky and Credit Karma, which affords services previously reserved for a few.

“Every aspect of life whether personal, business, corporate or governance requires monetary transactions. The faster, cheaper and easier those transactions are, the better your life….fintech, the revolution in finance that is being driven by technologies like smartphones, the internet and blockchain. Financial technology is no longer simply about automating existing financial processes or improving existing convenience, but rather about economic and societal transformation.”