Barbados’ financial space is a complex one and from the looks of things, it is likely to remain that way for some time. For consumers of banking and financial services and the providers of those services, the clash of priorities continues.Consumers are facing increasing pressure from rapidly rising costs and a challenging economic environment. For us in Barbados, we have effectively been confronted with a devaluation as our purchasing power has been so depressed by rising prices and stagnated salaries, further burdening the many people who live from pay cheque to pay cheque.The pressures on commercial banks are also real. For those operating in the Caribbean where economic growth has been stifled for several years, firstly from the international financial crisis and then the COVID-19 pandemic, this climate requires strategic management of operations and resources.Commercial banks, particularly the foreign owned institutions, have enjoyed decades-long runs of healthy profits out of our population. The period of largess and super-profits have come to an end with increased competition and a changing financial landscape.Moreover, with limited economies of scale, and competition from non-deposit taking institutions that have mushroomed, offering fast cash without the constrictions imposed by traditional lenders, banks face a tough market.
