One FinTech Avenue launched
BY JOEL JULIEN
joel.julien@trinidadexpress.com
AS heads of government of the Caribbean Community (Caricom) converged at the Hyatt hotel in Port of Spain, in a small packed room in a neighbouring building a significant milestone for the region was taking place.
'Today, July 5, 2023 is the day that the city of Port of Spain has been established as the capital for innovation within the Caribbean!' chief executive officer of the Trinidad and Tobago International Financial Centre John Outridge stated at the official launch of the region's first FinTech Innovation Centre, One FinTech Avenue, at Tower D of the International Waterfront Centre in Port of Spain.
Finance Minister Colm Imbert was originally carded to deliver the feature address at the event but instead, the minister in the Ministry of Finance Brian Manning deputised for him.
But Manning's presence at the event could not be more apt for two reasons; the TTIFC was the brainchild of his father, former prime minister Patrick Manning, and before his ascension to public office, the younger Manning had been critical of the TTIFC's operations.
Before delivering the feature address, Manning explained why he had been critical of the TTIFC.
'It is solely because of my passion for diversification in Trinidad and Tobago. Diversification is the way to protect our economy and our people from the vagaries of the international energy sector and projects like this one is exactly what we need to make Trinidad and Tobago the centre for technology in the entire region,' he said.
Manning said One FinTech Avenue will be regarded as the starting point and gateway for FinTech innovation in the Caribbean.
'This is certainly a huge milestone for Trinidad and Tobago as we seek to take our place alongside other globally recognised jurisdictions such as Luxembourg, Singapore, and the UK for advancing the FinTech sector and as a hub for the growth of inclusive digital financial services for the rest of the region,' he said.
Manning said the Government, through the Ministry of Finance, is 'deeply invested' in efforts to modernise this country's financial sector and supports the drive towards achieving more acceptance for digital payment products and services.
Perfect jurisdiction for FinTech start-ups Manning said Trinidad and Tobago's financial sector accounts for approximately one-third of total financial assets in the region, and the launch of One FinTech Avenue underscores this country's goal to preserve its position as having one of the largest and most diversified financial systems in the Caribbean.
'This goal is premised on the sector's interconnection with the rest of the Caribbean, which is crucial for a robust ecosystem of digital financial services,' Manning said.
'Trinidad and Tobago's financial sector accounts for several TT-based banks and insurance conglomerates actively operating across the region and with this strong foundation, Trinidad and Tobago is the perfect jurisdiction for FinTech start-ups that are seeking to build capabilities upon traditional finance,' he said.
Manning said it is known that financial participation has positive effects on economies.
A report published by the McKinsey Global Institute, he said, estimated that by 2025, digital finance has the potential to boost the GDP of developing economies by six per cent, or up to US$3.7 trillion.
'In T&T, many consumers and businesses still face challenges when trying to adopt and use digital financial products, in particular payment products, and, as a result, primarily operate in cash.
'This is a challenge not only here at home but across many emerging economies across the world,' he said.
According to Global Findex data, Manning said, 29 per cent of unbanked people choose not to use banking services because they lack confidence in the institution.
He said the TTIFC, through its Digital Financial Inclusion Study, is in the process of gathering updated data and insights that will assist the Ministry of Finance to better understand the barriers that contribute to the rate of financial exclusion currently experienced in T&T.
'It is my hope that with these insights, the Government can develop initiatives to increase the usage of digital financial services and increase the participation of citizens in the formal economy,' he said.
Manning said T&T is primed for FinTech innovation, with solid foundations for mobile and Internet infrastructure, as well as a robust payment environment.
And scaling FinTech, he said, has proven successful in increasing inclusion globally.
'With this view in mind, we anticipate that through this initiative, digital financial services will become more prevalent in the market,' Manning said. He said both the Luxembourg House for Financial Technology (LHoFT) and the Singapore FinTech Association are examples of similar facilities that have played crucial roles in fostering innovation and growth in the financial technology sector.
'They have helped to create a supportive ecosystem that encourages collaboration, knowledge sharing, and investment in new technologies,' he said. 'Tectonic shift towards inclusive digital financial services' TTIFC chairman Richard Young said One FinTech Avenue will serve as a place for collaboration and knowledge sharing among industry experts, entrepreneurs, and policymakers.
'One FinTech Avenue will foster an environment conducive to innovation and will pave the way for ground-breaking technologies that can transform how we conduct transactions and manage our finances,' Young said.
'It will provide individuals and businesses with access to cutting- edge solutions that aim to bridge the gap between traditional financial services and underserved communities. At the centre of its focus, this FinTech innovation centre will increase financial inclusion for everyone, regardless of their background or location, and ensure equal opportunities when it comes to accessing financial services,' he said. Young described the hub as a 'long-awaited tectonic shift' towards inclusive digital financial services for all.
So why build a FinTech Innovation Centre?
Well according to Outridge, One FinTech Avenue is envisioned to be the focal point for FinTech activity within the region.
'It will be the ecosystem encompassing the infrastructure, organisations, and people to be organised cohesively and focus energies to build solutions that will enhance the region's competitiveness and be the catalyst for increasing the levels of financial inclusion which is a challenge for all countries not just the developing countries,' he said.
He said One FinTech Avenue will be this country's dedicated national FinTech platform.
'The mission of this facility will be to build and foster Trinidad and Tobago's burgeoning FinTech ecosystem.
'One FinTech Avenue will bring together financial institutions, FinTech innovators, research, academia, and public authorities, to help drive forward the development of products that meet specific industry needs,' he said.
Outridge said One FinTech Avenue will also make connections with other FinTech nodes around the world, encouraging domestic and international collaborations, working groups, and initiatives.
'Another example of this will be later this month when we will have over 12 visiting and local Fin-Tech firms from across the globe attending a boot camp as well as members from the Eastern Caribbean Central Bank as the final phase of the Caribbean's first financial inclusion FinTech sprint,' he said.
One of the key aspects of the initiative, Oytridge said, is the private sector participation including the United Nations Capital Development Fund (UNCDF), VISA, Amaranth Business Solutions Ltd, Huawei, and Telecommunication Services of Trinidad and Tobago (TSTT).
Also present at the launch were Ambassador Extraordinary and Plenipotentiary delegation of the European Union His Excellency Peter Cavendish, Housing Minister Camille Robinson-Regis, Communications Minister Symon de Nobriga, Central Bank Governor Dr Alvin Hilaire, chairman of the T&T Revenue Authority Nigel Edwards and Transport Commissioner Clive Clarke.
RIBBON CUTTING: Minister in the Ministry of Finance Brian Manning, centre, cuts the ribbon to officially open One FinTech Avenue during the launch at the International Waterfront Centre in Port of Spain, last Wednesday. Looking on, from left, are Ambassador of the European Delegation Peter Cavendish, Communications Minister Symon de Nobriga, chairman of the Trinidad and Tobago International Financial Centre (TTIFC) Richard Young, TTIFC chief executive officer John Outridge, Housing Minister Camille Robinson-Regis and Central Bank Governer Dr Alvin Hilaire. -Photo: ISHMAEL SALANDY
