The recent announcement of new Automated Banking Machines (ABM) service standards to be implemented early next year by the Bank of Jamaica has prompted improvements in the reliability and service quality of the machines across the island over the past months.

The standards don’t take effect until January 2025, but new data released by the BOJ show that as at January, only 93 per cent of the ABMs across the country were operational. However, that number has since jumped to 97 per cent, with every parish reporting at least 90 per cent operational ABMs.

“This essentially means that approximately 38 to 40 ABMs have been commissioned or fixed and reintroduced into service,” Deputy Governor at the BOJ Jide Lewis said during a press briefing held at the BOJ’s Downtown Kingston headquarters on Tuesday.

“However, we still see areas for improvement, particularly in uptime and recovery times.”

Currently, machines are up and working around 90 to 91 per cent, short of the 95 per cent service level standard. Recovery times also fall short, with ABMs taking four to five hours to be back in service after downtime, compared to the standard of 60 minutes for urban and resort areas, and three hours for rural areas, Lewis reported.

Last month, the BOJ issued eight new standards aimed at improving the reliability and service quality of ABMs. The guidelines tackle issues such as ABM downtime and cash availability.

It speaks to the implementation of a board-approved ABM cash-risk-management policy at each bank to assess cash demand and adjust levels to prevent shortages, with banks expected to implement alert technology to notify when machines reach minimum cash levels or run out of cash, and contingency plans for unexpected events.

Additionally, routine maintenance is mandated to reduce service disruptions, and real-time notification systems must be implemented to alert banks when an ABM is out of service. Banks must also notify customers of prolonged malfunctions and provide information on nearby ABMs.

“In terms of recovery time we are still seeing where it is taking between four to five hours for ABMs once they are down to be brought back into commission. We expect that over the course of the next couple of months that we will see improvements in those performances,” Lewis said.

“Overall there is some movement, hopefully it is palpable based on the customer experience perspective, meaning persons are feeling those positive effect. They will ultimately be the ones to say whether or not they are seeing the difference, but the numbers are indicating improvements, he continued.

While failure to implement these standards will not result in monetary fines, banks could face enhanced scrutiny from the BOJ. Eventually, banks will also be required to adhere to supporting legislation under the developing Twin Peaks system of financial sector regulation.

In providing an update on the legislative process, the BOJ Governor Richard Byles described the process as challenging.

“Getting legislation passed in Jamaica is very difficult. For two reasons, one is that the process that you have to go through to draft it and get it to Parliament is enormous. Sixto seven institutions have to see it, and read it, apart from the lawyers that have to draft it, It has to get cabinet approval and then it reaches Parliament and then it is debated.

This process often delays significant legislative changes, including the much-anticipated Twin Peaks regulatory framework. However, the Governor noted that some progress has been made in this regard.

“We have spent the better part of a year trying to get it through the process to reach the Cabinet. We are near to that, but we haven’t reached Cabinet yet, and then it has to get drafted into law and go to Parliament,” explained a government official involved in the legislative process. “The bottleneck is exacerbated when multiple organizations, including the BOJ, have their own legislative adjustments pending.”

He added that although the BOJ was primarily established for prudential supervision in response to the mid-90s crisis, the central continues to find innovative ways to address market conduct and customer service issues in the commercial banking sector.

“Our approach involves engaging with commercial banks to align them with higher standards, emphasizing the importance of maintaining their reputation and addressing public concerns. This strategy has proven successful, as evidenced by our recent initiatives with ATMs. We closely monitor these efforts and regularly publish results, with three assessments conducted since the beginning of the year,” he said.