Gov’t partners with banks to roll out NIDS pilot programme

Although many Jamaicans remain sceptical about the National Identification System (NIDS), all major deposit-taking institutions in Jamaica have signed a memorandum of understanding (MOU) on Friday to partner with the Government for a pilot programme.

This will allow Jamaicans to open bank accounts with a NIDS identification card, and not need to go through several processes, such as filling out forms and going to a justice of the peace for verification.

Representatives from Scotia Group Jamaica Limited, National Commercial Bank, Sagicor Bank, The Jamaica National Group, Inter-American Development Bank, Citibank, First Global Bank Limited, CIBC FirstCaribbean International Bank, Cornerstone Trust and Merchant Bank Limited, Victoria Mutual Group, Jamaica Money Market Brokers and Jamaica Bankers Association were present at the signing.

Prime Minister Andrew Holness reiterated his call for all Jamaicans to buy into the concept of NIDS, because, to him, it is trustworthy.

“The record of transaction is not just a mere leisure that you keep and the accounting standards and systems that you follow, but it is also a leisure of trust, because each transaction is based on trust, and the first element of trust in a transaction is that you know who you are transacting with,” Holness said.

He said using NIDS to open bank accounts will benefit those who do not have a formal national identification particularly persons in the lower strata of the society.

TRUST AND CREDIT

“In Jamaica, we go to the shop and we say, ‘Trust me!’ You take it for granted when we say it. In other words, we use ‘trust’ as the substitute word for ‘credit’ and that credit takes place because the shopkeeper, in essence, is a community person and he knows who is saying ‘trust me’; and because there is this local knowledge, credit is offered,” Holness said.

He continued, “But if you were to take that understanding of trust and go to the bank and say, ‘Trust me an account nuh’, the bank would have to say, ‘I have to know my customer. So hear what, before I can give you any trust, come to me with identification.’”

The bank representatives told The Gleaner that persons can still open bank accounts using the current process.

Audrey Tugwell Henry, president and chief executive officer of Scotia Group, said they support NIDS because they believe in the value proposition for all Jamaicans alike.

“I would encourage all Jamaicans to participate and support NIDS, because it represents the future; to allow us to digitise our economy and to simplify the way we do business in terms of knowing our customers and simplifying the process of onboarding new customers,” she said.

Earl Jarrett, chief executive officer of Jamaica National Group, said NIDS is of significant importance to enable persons to come into the formal system.

“The idea of getting to have individuals in Jamaica have a proper form of identification is absolutely important. I’ve seen the frustration of persons and, hopefully, this project can solve that problem,” he said.

He said Jamaicans should not be against NIDS.

Mariame McIntosh Robinson, president and chief executive officer of First Global Bank, said NIDS is a very efficient way for people to be able to show their identification, which is one of the main barriers to get access to the breath of financial services.

“Speaking on behalf of First Global Bank and the GraceKennedy Group overall, who do believe that where society is going, we need to have an enabling digital environment ... NIDS is just one aspect of enabling that,” she said.

She said NIDS will help to remove barriers and allow customers to move from bank to bank more easily.

ainsworth.morris@gleanerjm.com