By: Staff Writer
August 25, 2023
Mastercard has “no preference,” on which Fin-Tech they support in the Caribbean as they have committed to broadening their support for unbanked Caribbean areas but are encountering challenegs as they make progress.
Jimena Elia, Mastercard country manager for the Western and Dutch market for the Caribbean, told Caribbean Magazine Plus that their Fin-Tech summit in The Bahamas aimed to reach the underserved and unbanked populations around the Caribbean with modern Fin-Tech solutions that bridge the gap between the public and private sectors.
She also said that despite their best efforts, things have been “challenging,” with their efforts. “If you don’t see challenges then you have to ask yourself if you are in the right direction? Every single player in the Fin-Tech space that wants to disrupt the status quo and bring something new will face challenges.”
Solutions like software, mobile applications, and other technologies created to improve and automate traditional forms of finance for businesses and consumers alike, have been moving at a considerable pace since the late 1990’s in developed markets. However, with the onset of the COVID-19 pandemic, an explosion of use was seen in developing countries as a form of necessity because touchless forms of transferring payment was at a premium.
Ms Elia also said: “But regulation is a challenge and it is not that the regulators are in the wrong direction. They are learning as well as other players about how to treat, in a fair way, these new technologies. So regulatory framework is one aspects of the challenge.
She continued, “The second is we need enablers in this beautiful Caribbean region. Because at the end of the day, we have a lot of great ideas, but sometimes we are faced with a lot of barriers in order to make things happen from an implementation point of view. So the role of enablers in order to really combine all those stakeholders and partners in order to really get a faster ready to go to market plan.”
These two challenges of regulatory strictures and inadequate numbers of enablers are key to unlocking the potential of small and medium sized enterprises (SMEs) across the region.
As the backbone of many economies, SMEs require a comprehensive suite of services from their financial providers to effectively manage, grow, and protect their businesses. While payment cards remain a crucial aspect, SMEs are seeking “business-in-a-box” solutions tailored to their specific industry needs. As the financial service industry strives to meet the contemporary needs of SMEs, understanding their requirements and offering specialized services becomes paramount.