By Hilbert Haar
The draft banking law that is currently under review by the parliament triggers a number of questions. The first one is, of course, whether this law will result in “financial inclusion.” What is that supposed to mean anyway?
See related article: Support for draft banking law, but questions remain
Don’t get me wrong; it is positive that the government makes an effort to tackle the hurdles applicants for a basic bank account have to overcome if they want to get rid of their unbanked status.
While the draft law tackles obstacles on the side of the banks, it simultaneously creates new obstacles on the side of potential clients. Applicants must for instance prove legal residency. But what if they live on the French side of the island and work on the Dutch side? What will happen to the non-resident accounts? Will they be outlawed?
Another obstacle is that basic accounts can only be used for payments within St. Maarten. This means that clients cannot use their bank card (if they get one) on the French side or for payments of for instance purchases via the internet.
Then there is the – undoubtedly well-intended – urge to create a Paypal-like payment platform. My question would be: why? What would such a platform add to something we already have? And who would have to invest in the development of such a platform and who would become its owner?
Banks are private enterprises. They objective is to make a profit and – if we take the recently released numbers by the Maduro Curiel Bank as an example – they are pretty damn good at it. In 2024 MCB reported a net profit of 208 million guilders, almost double the result of a year earlier. These numbers show that there is money to be made in banking and that makes it tempting to think that banks are financially so well off that they can afford to invest in the development of a digital payment platform. Which bank is ready to put up something like $250,000 for such a venture?
The main question is obviously whether such a local payment platform would be accepted globally. I don’t know the answer but there is probably a good reason why it is near impossible for people in St. Maarten to open a Paypal-account. This makes me think that a local payment platform cannot count on a lot of enthusiasm outside of our borders – and that makes the whole exercise rather pointless.
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Related articles:
Support for draft banking law, but questions remain
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