CIBC FirstCaribbean Jamaica and First Global introduce Cross-Network Banking heralds Cashless Society

While the BOJ (Bank of Jamaica) in March 2012AD has put an indefinite hold on the JCCUL (Jamaica Cooperative Credit Union League) Google Wallet service powered by Mozido Jamaica Limited Genius Wallet which was rebranded as JCUES (Jamaica Credit Union e-Payment Services) due to worries over Money Laundering as stated in my blog article entitled “JCCUL JCUES is put on hold by the BOJ - ePayment setback means Mozido has been Bewitched”, the Banking Sector is moving forward.

This time it’s not the Big Three Banks in the form of NCB (National Commercial Bank), BNS (Bank of Nova Scotia) more commonly known as Scotia Bank and RBTT (Royal Bank of Trinidad and Tobago), now rebranded RBC (Royal Bank of Canada).

Rather it’s the CIBC First Caribbean Jamaica and First Global, the 4^th and 5^th largest Banks in Jamaica, that have decided to introduce Online Cross-Network Banking for Retail customers to any other Commercial Banks Accounts as stated in the article “Cross-network Banking taking root”, published Sunday September 30, 2012 by Mcpherse Thompson The Jamaica Gleaner.

An early forerunner of a Cashless Society and Banking Anywhere with added security of you smartphone being easily traceable once you lose it as opposed to easily hackable Debit and Credit Cards as argued in my blog article entitled “Debit Card Cloning and the Cashless Society” and “Who is responsible if your Credit Card or Debit Card Account is hackeD?”

For the computer savvy, Internet connected Tablet and Smartphone toting crowd now slowly growing in Jamaica as noted in my blog article entitled “Blackberry popularity wanes as Jamaicans go smartphones - Android and Apple's Smartphone Revolution”, this is a treat, as Online Banking for Retail Customers is free of Banking charges, at least for now.

NCB and ScotiaBank only offer Cross-Network Banking to its Corporate and Business customers. If you’ve been following my Telecoms articles thus far, the reason for this is a lot like the privileges that the Postpaid Customer on Telecom Networks enjoyed by virtue of the fact that they are a steady source of Revenue and thus garner the Telecom Provider attention.

This is surprising, as one would have expected the Big Three Banks to pioneer this concept among its Retail Customers, especially Scotia Bank, who had basically introduced the idea of a Debit Credit Card to Jamaica for Online Shopping among its Retail customers in August 2011AD as chronicled in my Geezam blog article entitled ScotiaBank’s VISA Debit Card – Jamaica’s Online E-Commerce Renaissance and How to use Scotia VISA Debit Card Online.

Obviously to a frequent Debit Card user such as myself, this idea of Cross-Network Banking, has resonance, as it bears a striking resemblance to Flat Rate Cross Network Calling for Prepaid customers in the Telecoms World as heralded in my blog article entitled “OUR's JA$5.00 Cross Network Flat Rate ratified by Judge Ingrid Mangatal  - GOJ's Telecoms Tax applied and Digicel's victory in FTC Case assured”.

After all, much like the Telecoms World, we already have a form of Cross Network Banking; once you go to any ATM (Automated Teller Machine) that has the MultiLink sign, you can use your Debit Card to perform limited Transactions that attract prohibitively expensive Cross Network Banking Fees. Again akin to the Early Days of Cross Network Calling among Telecom Providers before the prices came tumbling down

I say limited, as most of these MultiLink ATM, which are maintained for the Banks by a contractor named JET Limited, provide only the ability to look at you Account Balance [Enquiry] and Withdraw Funds [Withdraw].

There is still no facility to allow you to:

1.      Deposit funds at any Multilink ATM to your own Accounts

2.      Deposit funds at any Multilink ATM to any other Account other than your own

3.      Deposit cheques at any Multilink ATM

4.      Change Cheques at any Multilink ATM

These transactions still have to be done inside of the Bank in bleak long lines entertained only by Sports events on the Banks strategically mounted TV Sets. So it nice to know that at least CIBC First Caribbean Jamaica is following suite behind GraceKennedy Limited owned First Global and introducing this facility, albeit online.

It would be nice if the above were also implemented by the Big Three, as it would allow for Cross-Network Banking on smartphones and make the many unBanked in Jamaica as recently studied by Director of the Centre of Excellence of the Mona School of Business (MSB) Dr Maurice McNaughton as noted in the article “Jamaica Counting On its UnBanked”, published Friday, September 30, 2011, The Jamaica Observer more amenable to the idea of putting their money in a Bank in the First place.

All that is required is for the Telecom Providers to upgrade their Telecom Networks to use stronger A5/1 Encryption on their GSM Networks as stated in my blog article entitled “Telecom Providers and Mobile Banking - Christmas a cum me wah me llama” as it is very much a possibility in the future that hackers will begin to focus their efforts on intercepting the Telecom Provider Networks to steal Debit and Credit Card numbers and PINs (Personal Identification Numbers).

Once all the above becomes possible among Commercial Banks and Credit Unions, the BOJ would be more open to the idea of JCUES Cashless Banking powered by Mozido Jamaica, whose business is aimed at unBanked Remittance Recipients as described in my blog article entitled “Mozido Jamaica Limited and Mobile Payments - Plants and Zombies say the Gods must be Crazy” , as they would simply recommend the following:

1.      JCCUL members who have a JCUES Account using a Mobile Phone must also have a Commercial Bank Account

2.      Their Mobile phone needs to be registered in their name, preferably using GOJ Picture Identification

By that time, sometime around 2015AD, everyone would have migrated to smartphones and all Commercial Banks and Credit Unions would have begun to offer Cross-Network Banking and Mobile Banking services. The UnBanked in Jamaica, mainly recipients of Remittances from abroad and SME (Small and Medium Enterprises) who do not have their money in a Bank Account would have no excuse not to trust the Commercial Banks and Credit Unions as they would have easy access to their money.

By making all transaction go from Bank Account to Bank Account be it in a Credit Union or a Commercial Bank, it makes them traceable and easily taxable, thus satisfying the BOJ criteria for proper regulation of the Banking Sector and making Money laundering next to impossible.

It would also offer a measure of protection, as Telecom Provider Networks are already heavily encrypted, and on having your Mobile phone stolen, one would merely report it to your Telecom Provider to have the SIM Card blocked so you can get back your phone number, which would effectively be you Account Number.

Thus a benefit to Telecom Providers, not only would see and increased used of their GSM Voice Networks EDGE (Enhanced Data Rates for GSM Evolution) Services to connect more ATM’s all across the island but also you take advantage of the increased Cross-Banking activity to introduce Video Calling Services in ATM’s powered by Avaya as stated in “Avaya's Scopia will save on trips”, published Friday, September 21, 2012 by NEKIESHA REID Business reporter, The Jamaica Observer.

Remember folks, both Telecom Provider LIME and Telecom Provider Digicel VoIP Video Calling Platforms are being powered by Avaya Communications Limited as explained in my blog article entitled “Digicel and Avaya Communications launch Avaya Aura for SME's - LIME and Digicel in a Step Up Revolution towards GSM Voice Extinction” so this idea of Video Calling’s introduction to Jamaica via ATM’s is not as farfetched as it sounds.

After all, it’s my hard-earned money and I should be able to get access to it or add to it at any time, any place I desire. It would thus seem therefore that this little reported development in the Media by CIBC First Caribbean Jamaica and First Global, the 4^th and 5^th largest Banks in Jamaica is really The Avengers (2012) that will come to the rescue of Retail Banking Customer and grant them the same privileges as Business and Corporate customers, much in the same way Prepaid Customer now have the same Cross Network Calling Rates as PostPaid customer once had.

Not only would this usher in a Cashless Society of the same species at that in Sweden without the need for Debit and Credit Cards as described as stated in the article “In Sweden, Cash Is King No More In Sweden, Cash Is King No More” Published Monday  March 19, 2012, The Jamaica Gleaner, but the transactions would be more secure than Debit and Credit Cards, whose PIN numbers can be easily copied.