FinTech is an area of opportunity for Bahamian banks, according to Abhilash Bhachech, inspector of banks with the Central Bank of The Bahamas, who told attendees of an industry conference yesterday that such technology is a growing trend worldwide.

As clients prioritize convenience, the market for digital services is expected to boom worldwide. According to Bhachech, total IT spend in the worldwide financial industry soared to $500 billion last year, and that number is set to rise.

“Financial technology is something that has always been there but as technology advances it has transformed the industry,” said Bhachech. “IT enterprises are making bank’s services more inclusive and accessible to clients. There is a potential for our own banks in The Bahamas to build cutting-edge platforms.”

As technology grows, however, there are fears that it could outpace regulation. Bhachech said there was a need to balance these interests and monitor the market, while ensuring regulatory efforts don’t dampen innovation. He highlighted the practice of developing a regulatory “sandbox” as a strategy effectively employed in other jurisdictions. The sandbox approach allows financial services providers to fully test new products in a controlled environment before bringing them to market.

Bhachech delivered the presentation at the Association of International Banks & Trust Companies’s (AIBT) Regulators Forum, held yesterday at the Baha Mar convention centre on Cable Beach. Other speakers on the agenda included Central Bank governor John Rolle and executive director of the Securities Commission Christina Rolle.