FINANCIAL institutions are under increasing pressure to swiftly integrate technology and artificial intelligence (AI) into their business models.

Senator Dana Morris Dixon, minister without portfolio for skills and digital transformation, has sounded the clarion call, highlighting pressing challenges facing the public and urging banks to strategise for inclusivity.

“Financial inclusion is more than having a bank account; it’s about empowering people and communities with the tools and resources they need to truly participate in economic systems,” emphasised Morris Dixon.

During a webinar on financial inclusion titled ‘Beyond Banking: How Inclusive Banking Gets Your Financial Institution Ahead,’ Senator Morris Dixon highlighted that amidst Jamaica’s heavy reliance on cash transactions and lagging adoption of electronic payment methods, coupled with limited access to formal credit and pervasive distrust in financial institutions, there is an urgent need for systemic change.

“Only 30 per cent of Jamaicans save through a regulated financial institution, which is an issue,” Morris Dixon explained.

She underscores the significance of expanding access to savings, pensions, credit, and insurance products to bridge existing gaps in coverage and empower individuals and communities economically. She asserts that opening doors to those who have been systematically locked out of the financial mainstream should extend to savings, pensions, credit cards, and insurance to preserve wealth, an area in which many people do not have coverage.

“When we have a large portion of our population that does not have access to insurance products, that is an issue. And you hear it all the time: insurance costs are too high, and I cannot insure my house, which is a problem when natural disasters come,” she said, emphasising the importance of Jamaicans having access to insurance.

Morris Dixon’s call for action coincides with the impending roll-out of Jamaica’s National Identification System (NIDS), set to revolutionise verification processes and pave the way for seamless banking operations.

“We will finally have an ID backed by biometric information, which means for the banking community, KYC, that’s no longer in doubt. It should change what we do in banking and set the stage for banking to do verifications easily,” she stated.

While acknowledging that more institutions have adopted an online presence and established apps to facilitate customer interactions, she highlighted an observation regarding the user experience on both government and financial platforms, noting that many lack user-friendly interfaces.

“If it’s not easy for people to use, then you haven’t made their lives easier,” she emphasised.

In urging financial institutions to embrace digital transformation, she stressed the paramount importance of prioritising user-friendly platforms over mere digitisation efforts. Morris Dixon emphasised that investing in systems that offer a seamless user experience is crucial, as poor usability would render the investment futile.

However, the road to financial inclusion isn’t solely paved with technological advancements. Banks are being encouraged to look more closely into AI models to enhance operational inefficiencies and customer experiences within the banking sector.

“We haven’t been able to use chatbots and natural language processing to the extent that they can be used. We’ve only touched the surface,” remarked Gillian Jackson, senior manager of data analytics at the Jamaica National Group.

According to Jackson, as businesses strive to remain competitive and meet evolving consumer demands, the integration of AI-driven solutions emerges as a critical imperative. She warned that banks will be at a severe disadvantage if they are not using AI compared to those who are, as processes will be slower, customers will be less satisfied, and they won’t have the benefits that banks using AI have and are seeking to improve on.