The Barbados Consumer Empowerment Network (BCEN) has expressed support for the Central Bank of Barbados’ decision to require financial institutions to resolve recent technical issues plaguing the BiMPay platform.
In a statement, BCEN welcomed the governor’s acknowledgment of the frustration felt by Barbadians who experienced delays in receiving salaries, pensions, and other critical payments. The consumer advocacy group emphasised that the regulator’s swift action was a positive step toward ensuring everyday citizens are not left carrying the burden of system glitches.
”Consumers should never bear the consequences of failures within the financial system, especially when they have complied with all of their obligations,” said Maureen Holder, BCEN executive chair. “In this regard, the Central Bank’s intervention, we deem it as necessary.”
While praising the immediate intervention, BCEN noted that the BiMPay disruptions highlight wider, systemic gaps in the oversight of the financial industry. The advocacy group suggested that the Central Bank must adopt a more proactive posture rather than acting only after consumers experience financial hardship.
In highlighting these systemic gaps, Holder pointed specifically to “increasingly restrictive and burdensome Know Your Customer (KYC) requirements” that often exceed what is necessary for low-risk customers. The group also raised concerns over “reduced access to face-to-face banking services and shorter banking hours,” which they noted “disproportionately affect elderly persons, persons with disabilities, and those without digital access”.
Holder highlighted her concerns about the “growing shift toward digital banking without ensuring that adequate consumer protections and alternatives remain in place,” alongside “delays in addressing consumer complaints and market conduct issues before they become widespread”.
To address these challenges, Holder urged a shift in the regulatory dynamic: “Relations could be cordial but professional, but the Central Bank must be prepared to challenge commercial banks where necessary and place the interests of consumers and the wider public ahead of institutional convenience.”
To prevent future disruptions and build a more resilient financial ecosystem, BCEN called on the Central Bank to strengthen its market conduct supervision of commercial banks and to intervene much earlier when consumer complaints begin to reveal systemic problems.
BCEN also recommended publishing regular reports on consumer banking issues and the actions taken to address them. To safeguard future digital transitions, it advised that payment innovations be introduced with robust testing, contingency planning, and clear accountability for service failures, while also establishing stronger engagement with consumer organisations as part of the Central Bank’s regulatory oversight framework.
Regarding the overall performance of the new payment system, Holder said it was far too early to make a definitive assessment on whether BiMPay has successfully modernised the national payment system. Whilst acknowledging its potential to improve real-time transactions, its long-term success will depend on how well it serves all consumers, particularly those with limited digital skills, she said.
”We have not received any major complaints from consumers—on any significant level—about the new payment system,” Holder said. “But we will monitor the impact of BiMPay and where necessary engage stakeholders to help ensure that the new payment system delivers tangible benefits to consumers, and supports a more inclusive and efficient financial sector.”
(RR)
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