From pen pals to direct messages, from dial-up Internet to fibre optics, brooms, and robot vacuums, new technological advancements are happening every day to make our lives easier, safer, and more convenient. It is no different for the banking and finance sector. Gone are the days of standing in a bank line for hours to conduct one transaction. And while the world seems to be nearing the end of the novel coronavirus pandemic, many people are still wary of the long and crowded queues at traditional banks.

That’s why inventions such as digital wallets and digital currencies are changing the finance space, especially in Jamaica. The Bank of Jamaica will launch the country’s very own central bank digital currency (CBDC), JAM-DEX, which will further revolutionise the local banking industry.

JAM-DEX is a digital-only version of the Jamaican dollar. It is considered legal tender and can be exchanged with regular banknotes and coins. CBDC is held in a digital wallet, precisely like a regular wallet but only on a mobile device. Lynk, Jamaica’s latest digital wallet, is currently the only CBDC-approved one. When the BOJ launches JAM-DEX, customers will need to have a Lynk wallet to use it.

Lynk and JAM-DEX offer a solution to one of Jamaica’s most prominent financial issues — inclusion. Many Jamaicans find it challenging to open traditional bank accounts because they do not meet the know your customer (KYC) requirements. These KYC requirements are necessary conditions needed by the BOJ to ensure that banks are meeting international standards. To open a Lynk account, customers only need a Government-issued photo ID and a tax registration number. This dramatically increases the number of people that can open accounts, bringing more Jamaicans into the formal banking system.

The Lynk wallet can be connected to any existing bank. Customers can use any of National Commercial Bank’s approximately 180 smart automated banking machines (iABMs) across the island to fund their wallets. Once JAM-DEX is launched, users will also be able to use the iABMs to cash in or cash out their JAM-DEX wallets without a bank card.

Another pitfall of traditional banking is the delay when transferring money from one account to another. However, Lynk allows for instant peer-to-peer transactions and provides a safe and convenient way to perform day-to-day transactions, such as paying bills. There are also no fees associated with opening and maintaining a digital wallet account.

With over 1,000 merchants signed up on the platform, the app, which is free to download, will allow customers to settle their bills instantly. And, for merchants, it means a reduction in the amount of cash handled and access to the un/underbanked. They can also offer personalised promotions and loyalty programmes. Lynkies, as app users are called, will also be able to track and monitor their transactions and access remittances.

Soon, in the app, Lynkies will see a map that displays all the merchants that access Lynk and JAM-DEX as payment.

Currently, Lynk is a Jamaican dollar account, but once JAM-DEX launches, it will become a multi-currency wallet, holding both JMD and JAM-DEX. Lynk also has plans to expand its wallet capabilities to hold other international currencies.

The future of banking is not just coming, it’s already here, and Jamaica has been rapidly adopting and adapting so that the country and its citizens don’t get left behind.