THE heads of two major business chambers have called on banks to make it less challenging for small business owners to open accounts.

On Monday, Finance Minister Colm Imbert revealed that 72 per cent of TT's businesses do not have business bank accounts.

Speaking to Newsday on Thursday, president of the Greater San Fernando Area Chamber of Commerce Kiran Singh said he believes that percentage is high primarily because of  "the stringent due diligence banks make entrepreneurs to go through.

"It's a lot of documentation, as some banks would ask for financial statements, credit references from another financial institution...

"It's a real challenge for micro-businesses."

He urged banks to relax some of these requirements "to enable small entrepreneurs to enter the financial system and as they grow, you can begin to have proper record-keeping and work with them.

"When they are just starting off, they cannot do it on their own," he added.

Chairman of the Tobago Business Chamber Martin George said business owners face difficulties when trying to open accounts.

"Most of the commercial banks in TT, they place so many hurdles and there's so much red tape and so many obstacles in your way...

"It really is a frustrating process...A lot of the responsibility falls upon the banks, because in other jurisdictions, it's a lot simpler, a lot easier.

"There's no reason for us to have such a bureaucratic and overly burdensome process."

The TT Chamber of Commerce said smaller businesses may not meet all the criteria for a bank account.

"As an example, think of at-home businesses with a young adult in their parents' home who started a business and who does not have a utility bill in their name."

It added, "There are also valid concerns about fees, interest rates and cybersecurity.

"The fees and charges imposed by banks can certainly add up, and it's frustrating when you feel like you're not getting much in return, especially when interest rates are minimal."

The chamber said trust in cybersecurity is crucial, especially with the frequency of cyber threats.

"People rightly worry about the safety of their financial information. It's a delicate balance between convenience and security, and it's challenging for many to fully trust that their data is in safe hands."

However, it said some smaller businesses opt not to have bank accounts so as to be part of the "shadow economy" and avoid paying taxes.

Imbert also said 88 per cent of TT's businesses do not accept digital payments, and 55 per cent of the population "do not now have the knowledge to use mobile or web online banking.

Singh said digitisation is a "major step" more businesses should take, but agreed there is a need for increased and improved cybersecurity.

"Senior business owners in the country look at online banking with suspicion and fear (because of) fraud and identity theft. It really messes with their psyche.

"On top of that, not all local banks' websites are user-friendly, so it can be quite a challenge to navigate."

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