Cashless or hybrid?
Navigating the Jamaican payment system — Part 2
Managing money is almost never easy. In a pandemic no less, it’s an Olympic sport. With the global economy thrusted into a digital tailspin almost four years ago at the onset of the novel coronavirus pandemic, we’ve shifted how we made money in nearly every way.
Last week, we discussed that the best reality for the Jamaican economy is a hybrid one, this week we’ll look at some tips on how you can, digitally and traditionally, manage your money, now.
In my last article, we reviewed the cost, convenience, and clarity of our current financial system with very critical questions you as a consumer, will need to ask your bank going forward as you manage your monthly money risk. This week, we’re discussing how you can diversify the cash you have and how to truly utilise banks and their available digital tools to maximise effectiveness.
Here’s what I suggest:
Diversify your current spending patterns for added safety. In addition to having more than one account with separate deposit-taking institutions, also consider having more than one method of choice in the utilisation of your funds. Think cash, card and mobile wallet. As you would have already noticed, monthly issues with our local ABMs can be a hassle.
Between long lines in the sun, low or no cash and other service issues, consumers are stuck between a rock and hard place. This consistent malfunction has even prompted parliamentarians’ intervention in the matter.
In 2023, there was a request to guarantee the proper functioning and cash supply of ABMs during high spending periods such as Christmas. In early 2024, there was another ask for an increase in ABMs islandwide as inadequate maintenance and no real-time communication turned average cash withdrawals and deposits into distressing daily errands, demanding increased accessibility to consistently working machines.
With recent crimes upon said machines, banks were ultimately left with no choice to but to close several ABMs islandwide. Of note, this isn’t a local phenomenon as globally banks are closing hundreds of branches and machines to reduce operational expenses. The challenge with that move locally is that it may affect customers’ experience with the brand prompting them to switch to the competition.
So if you think about it, diversifying how you use your cash is best. If you happen to have a consistent ABM in your area of choice, one where at specific times of the month you have little to no issues;, that is, it is flushed with cash, the lines are bearable, and you’re pleased with what you pay per transaction, then my suggestion is that you pull your cash in bulk and operationalise your budget via the envelope method — prioritising what you may need in each envelope to always have cash at hand for your expenses. But, be very discreet, as this can attract unnecessary theft.
One great thing about the challenges we face as a nation is that it gives rise to solutions. One recent player worth mentioning is “ATM Finder Ja” which gives a list of ATMs in close proximity as well as informing you on whether or not an ABM line is long. An excellent add to your monthly management, it solves the primary issues of alerting if an ABM has cash or not nearest to you. While there are many ways this app can be improved upon, it is a valiant effort for all consumers.
Next week, more steps on diversifying your money management.
Until next time, think digital first…
Shane G Bennett is a martech and marcomms professional specialising in digital transformation, corporate communications, social media solutions, and brand management for SMEs, non-profits, and multi-national companies. You may contact him via email at sgbjamaica@gmail.com.