ROSEAU, Dominica — In late 2018, Digibank will join the ranks of Class-A licensed offshore banks in Dominica. Digibank aims to incorporate technology to traditional offshore bank services to achieve three crucial comparative advantages, namely full digitalization, faster processing speed and lower transaction cost.
Dominica is one of the nine members of the Eastern Caribbean Central Bank (ECCB). Its conservative policy of building up exchange cover for the Eastern Caribbean dollar to a much greater extent than required by its basic agreement has led to monetary stability for member countries and made the EC dollar one of the strongest currencies in the region.
With the rise of fintech and the proliferation of business models that ride on technological innovation, the world has seen unprecedented arrivals of new companies that offer financial services that is not limited by geography. Asian tech giants such as Alibaba and Tencent all have a great vested interest in this area.
The boom of Asia led mainly by the second global superpower – China – will continue to spur the need for international mobility of funds. With awareness and market acceptance for offshore banking services in Asia increasing from 5.6% to 13.4% between 2005 to 2015, and the availability of new technology within the finance sector, an opportunity for the marriage of fintech and offshore banking presents itself.
Digibank enters the financial industry with a strong inclination towards technology, riding the fintech wave of innovation that has only just taken flight.