In a significant shift from traditional banking practices, financial institutions are increasingly adopting digital onboarding solutions to streamline the account opening process. Following years of requiring in-branch visits, both CIBC Caribbean Bank Limited (formerly FirstCaribbean International Bank Limited) and JMMB Group Limited have recently launched digital platforms that enable clients to open accounts online.
These new digital onboarding tools allow clients to input personal information, upload Know Your Customer (KYC) documents, and take a selfie, all of which are secured through encryption. A follow-up verification call ensures the application is legitimate. Branch visits are only necessary if further verification is needed or for picking up a new debit card.
CIBC Caribbean’s new platform, introduced as a fully digital end-to-end process, simplifies the opening of individual savings and chequing accounts for new and existing clients, including sole traders in Jamaica. However, joint accounts are not supported through this platform. This initiative follows the successful rollout of their loan store, which processed nearly 10,000 applications in 2023, allowing borrowers to secure funds in under 10 minutes.
JMMB Group’s digital onboarding, launched in mid-August, enables clients to open both bank and investment accounts across Jamaica, the Dominican Republic, and Trinidad & Tobago. This new system replaces the old process of submitting forms via email and waiting for a verification call, making it more efficient and user-friendly.
Other Jamaican banks have also embraced online account opening to varying degrees. National Commercial Bank Jamaica Limited (NCBJ), Sagicor Bank Jamaica Limited, and First Global Bank Limited offer online account-opening options for new and existing clients. JN Bank Limited requires branch visits for new account openings but allows clients with up-to-date KYC information to access other JN Financial Group entities without submitting new documentation. Bank of Nova Scotia Jamaica Limited (BNSJ) enables existing clients to open new accounts online but has yet to roll out a solution for new clients.
In the investment sector, while some brokers like Barita Investments Limited and NCB Capital Markets Limited still require new clients to visit a branch, others such as Proven Wealth Limited and Mayberry Investments Limited offer full online account setup.
On the IPO front, nine out of 14 Jamaica Stock Exchange (JSE) brokers have introduced online platforms for capital market offers, although issues with external database information can still cause application rejections.
Joanna Banks, Executive Vice-President at Sagicor Group Jamaica Limited, shared insights on the future of digital onboarding. “Phase one is when you come into the branch and use a kiosk instead of interacting with a customer representative. Phase two will allow you to complete the entire process online. We’re making significant progress towards digital onboarding across all business lines,” Banks said.
The COVID-19 pandemic has accelerated this digital transformation, pushing financial institutions to invest in online solutions. According to the Bank of Jamaica (BOJ), while banks are required to verify customer identities and authenticate documents digitally under current legislation, challenges remain. The BOJ notes that if digital verification is not feasible, institutions may need to resort to additional verification measures, including physical documentation.
Recent regulatory changes have supported this digital shift. Amendments to regulations in 2019 and late 2023 have made it easier for financial institutions to adopt risk-based approaches and eliminate requirements like references for account opening.
The Fintech Regulatory Sandbox, as highlighted by the BOJ, has also been a key driver of innovation, allowing entities to test and refine digital solutions. This environment of support is expected to significantly contribute to Jamaica’s digital transformation in the financial sector.
