Fintech is affecting how people manage their transactional business and personal finances. It offers many opportunities to deliver financial products and services. The Bahamas sees Fintech as a platform for innovation that must be leveraged to succeed in this new digital age. The incentives under the Commercial Enterprises Act are also set to attract investment in this field. Mr. Jean Chalopin, Chairman of Deltec International said, “local friendly legislative and regulatory guidelines can make The Bahamas a hub for innovation and international financial centers with a regulated ecosystem for blockchain-based financial products, crypto exchanges, and crypto banking.”
Bahamian entrepreneurs can use this fintech platform to create a financial service business based on a new operating model. Fintech banking is also beneficial when it comes to ensuring protection against cyber threats and fraud. Secured blocks of records are used to prevent fraudulent activities and reduce the risk of hacking. These blocks of records are timestamped and connected through a distributed database. Banking processes and public services can be more streamlined and secure as well. It can be used for various purchases such as credit scoring. Such initiatives can help create new jobs and services in various areas such as micropayments and digital payment solutions, legal advice, insurance, crowdfunding, financial planning, portfolio allocation, investment management, and trading.
On the other hand, cryptocurrencies also present a lot of investment opportunities to established businesses aiming to enhance their customer experience, and tech startups aiming to gain market share. These opportunities can open new investment capital sources, which can also help boost economic growth. This digital environment is beneficial for crowdfunding as well. Aside from promoting the development of new financial products, it also improves philanthropy and impact investments.
The introduction of smart contracts has led to improved transparency and automation. Financial institutions can improve their scalability and efficiency with these tools. Corporate and fund administration services can also enhance service delivery and reduce costs through automation. Non- traditional companies can expand their financial services through Fintech solutions. For instance, regular businesses can improve the customer experience and boost sales volume by incorporating financial services in their business models, proactively identifying feasible clients, and securely extending credit.
The Bahamas is an international financial center and future tech hub that continues to cater to the needs of the changing demographics. The ease of access given through blockchain technology also gives people an opportunity to participate in the global economy actively. The Bahamas is also rich in natural assets and human resources that make it a great location to carry out Fintech activities.
The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.