#TurksandCaicos, April 3, 2023 – An initiative which has been talked about by both governments for many years is finally coming to light. A “National Credit Union”, could this be a potential breakthrough for financial freedom?
At last, residents of TCI will have the opportunity to compete in the rapid development of a booming economy in TCI.
The recent announcement by the minister of finance Hon. Jay Saunders, informed the public that his administration allocated $7M to seed fund a National Credit Union.
This was music to the ear of many business owners and local entrepreneurs who see this as an opportunity to either borrow funds to increase their working capital for needed projects or a jump start to a new business venture.
There are a number of benefits of having a local credit union membership. Unlike banks, credit unions are owned by the members they serve. This means that any profits can be given back to credit union members in the form of lower fees and higher savings rates, etc.
Also, since these are not-for-profit financial institutions, they can focus on providing better services for their member-owners. It also encourages ordinary people to come together for the financial betterment of their communities and their members.
Some of the great benefits are usually,
-Personalized customer service
-Higher interest rates on savings
-Lower fees
-Lower loan rates
-Community focus and a variety of other service offerings
To better understand why some may be head over heels with this announcement, one must understand some of the complexities and challenges that currently exist with banking services in TCI.
In a population of over 45K people, there are only three major community banks. First Caribbean International Bank, RBC Royal Bank and Scotia Bank Turks and Caicos Islands.
Residents in the Grand Turk, are still reeling from the sudden closure of a Scotia bank branch back in 2018. As one of the only two financial institutions that existed in the nation’s capital, this left hundreds of customers including many government employees high and dry.
This decision was not conducive to industrial and economic growth, and was a disservice to residents.
Apart from the inconvenience, I’m afraid to say, whilst offering quality and efficient services may be the goal of CIBC, it is certainly not one of their strengths. With the closure of Scotia bank branch, they missed an opportunity to step up to the plate.
With respect to the Credit Union proposed plan, it’s also important to remind residents there is a significant difference between allocated funds earmarked for a specific purpose, and that initiative ultimately coming to fruition.
A good example of that would be the proposed floating dock for Grand Turk, in which $1M was allocated towards this initiative. As we all know, that project is still looming in the balance.
Outside of government jobs, many residents are depending primarily on a tourism driven economy. We realized during the Covid-19 pandemic, this could be very fickle. With bank loans being tied directly to this arena, it could put lending institutions in a precarious position, which is one of the reasons they are often hesitant to take that risk.
In either case, the establishment of a local credit union is a noteworthy initiative. It will bring together like-minded businesses and influencers in this financial sector. In addition, it will be an added source of funds to help local businesses to not only survive but thrive.
Although I’m very optimistic about the Credit Union prospects, there is no victory lap yet. On the heels of the next election, we will need more then posturing. It needs to be a bipartisan initiative with resolve. This is what I would consider delivering for the people and in their best interest.
Ed Forbes,
Concerned citizen of GT