The rise of digital technology in Trinidad and Tobago

If the impact of our action is to be transformative and lasting, we must create and execute on a framework for e-government, e-business, e-commerce, and e-services.

Even as disruptive fintechs flourish, the more established banks continue to play a significant role in our various economies. Traditional banking, as an industry, underpins the stability and confidence in most of our economies and this is likely to hold. Additionally, most fintechs do in fact need a bank to facilitate some aspect of their operations. So, banks will be around for a long while but will need to adjust to the changing tide of technology.

As an industry, we are constantly innovating and evolving to meet the needs of our customers and in 2020 and 2021, financial institutions and businesses in general around the world were driven by the Covid-19 Pandemic to accelerate the pace of acceptance of technology and adjust our business models.

At Republic Bank, we have adjusted our operations by emphasizing all of our existing contactless methods of banking as well as fast-tracking the launch of new contactless methods of payment. In March 2021 our EndCash launch, introduced the first mobile digital wallet to the market, facilitating QR Code based contactless payments between individuals, from individuals to businesses and between businesses. We upgraded our online banking system and mobile app in July 2021, and while there were some serious hiccups we have learnt several lessons from this experience and will use these to continue to improve our user experience delivery. Our aim is to build a portfolio of digital solutions to facilitate our customers’ daily banking needs. As key industry players we must cultivate a mindset of excellence, agility and flexibility to drive the continuous improvement of our offerings and adapt to the everchanging demands of our customers.

If we look back in history, the Industrial Revolution shook up the world by altering businesses, economies, and society at large. This paradigm shift had a significant impact on the globe, and today it is the Digital Revolution that is, changing the way we live and conduct business.

As a society, we must ensure that we capitalize on this momentum and use the revolution as a catalyst for economic growth and diversification, a driver of competitiveness and innovation and an enabler of long-term development. We must also balance our quest for progress against the need to ensure those with less access to technology are not let behind.

While an interconnected global market is allowing modern technologies to appear in some of the world's most rural and remote locations, there is still a digital divide in many developing countries where work needs to be done to ensure inclusion and equity is achieved. As a society, we must invest in the necessary resources to identify current market gaps and the specific expertise required to help close them. And, if we continue to develop and improve technologies, society will be able to address the wide range of challenges we face, provided that these technologies are made available to everyone.

Of course, locally we have felt the economic impact of the Digital Revolution and while we have made significant advancements in building out a digital ecosystem, we still have a lot of work to do.

Consider that the internet penetration in Trinidad and Tobago stood at 77% in January 2020; this compared to a global figure of 59% and a Caribbean figure of 60% according to DataReportal.com. This shows us in a relatively good light but if we consider the fact that only 20% of persons 15 years and over make online purchases or pay bills online it clues us in to a gap. If a similar comparison is made for say, Estonia, internet penetration is 98% and online purchases register at 75%. Using the Singapore, internet penetration is 88% and online purchases are at 57%.

Both Estonia and Singapore are known to be places far along the digital transformation scale and so it is not surprising that the online purchase and bill payment numbers are higher than in Trinidad and Tobago. These places have achieved a level of digital transformation that have made them reference points, but such change did not happen by accident. It is typically a deliberate, planned result , based on a vision and managed with purpose.

As Senator the Honourable Allyson West, the then, Minister of Public Administration and Digital Transformation, stated in her Keynote Address at the Trinidad and Tobago Internet Governance Forum in January 2021, “…Government has placed the development of a Digital Trinidad and Tobago at the forefront of its Development Agenda and stated that a fully digital Trinidad and Tobago is central to the growth and diversification of our economy.”

By July 2021, Prime Minister Dr. the Honourable Keith Rowley had elevated Digital Transformation to full ministry status further signaling the Government’s digital intentions. These are good signs, but must be followed by consistent and continuous action and if the impact of that action is to be transformative and lasting, we must accelerate the productive and innovative use of ICT and create and execute on a framework for e-government, e-business, e-commerce, and e-services.

What gets measured gets done is an old adage that I use, and the development of a scorecard with defined metrics would be a great tool to create transparency and to help measure our progress. Measures like the Ease of Doing Business Index and the UN’s E-Government Development Index (EGDI) are good starts in providing directional indications of progress. For example, in 2014, Trinidad and Tobago ranked 91 of 193 in the EGDI and in 2020 moved up to 81st.

The Covid-19 pandemic has served as a catalyst for us to understand the benefits of a more digitally driven economy. What we now need is for it to provide the impetus for us to stop procrastinating and push ourselves to be proactive and creative. Over the last eighteen months we’ve made some small steps in government, industry, and small businesses and even in those minor shifts we have seen a new way which opens the path for better things ahead. This is just the proverbial tip of the iceberg and there is still much more to be done.