NASSAU, BAHAMAS – An inaugural survey by the Central Bank of The Bahamas revealed that over 99 percent of bank account applications were processed in the first half of 2024, with delays due to incomplete documentation adding 1-2 weeks, and individuals experiencing faster processing than businesses.
While this survey covers the first six months of 2024, all financial institutions reported that once full documentation was received, decisions were made in less than a week. Most applications were processed at the branch level, though three banks processed a portion at the enterprise level.
The Central Bank launched its first-ever Bank Account Opening Survey (BAOS) in November 2024 to track key indicators of the account opening process, including processing times, documentation requirements, and factors influencing outcomes. The survey will be conducted semiannually, with the inaugural survey covering January-June 2024.
Six commercial banks participated, and the results provide a baseline assessment, with responses aggregated to maintain confidentiality. The survey highlights that deposit accounts, especially savings and checking accounts, are the primary access points to financial services. Previous surveys have pointed to delays in account opening, due to unclear documentation requirements and long queues. According to the Central Bank, “the demand for deposit accounts is high, there are lags on the supply side, which have been highlighted in previous surveys of users of the financial system.”
The data showed that 98.7 percent of resident applications were approved, while 0.4 percent were denied, and 0.2 percent were pending review by June 2024. Most applications were for savings accounts, with resident individuals submitting the majority of applications (94 percent). Business applications accounted for 5.5 percent, with a small number from the public sector and private financial institutions. “While nearly all the applications were processed within the review period, outcomes were still impacted by incomplete applications, which were either missing information or required additional documentation.”
The survey found that while the majority of applications were processed within the review period, delays were more common for businesses and non-residents, especially for foreign currency accounts. Banks reported that incomplete applications, missing or additional documentation, added an average of 1-2 weeks to the process. The Central Bank noted: “The data reveals that over the survey period, compared to businesses, individuals experience a more expedited encounter with opening accounts. Further, while nearly all the applications were processed within the review period, outcomes were still impacted by incomplete applications, which were either missing information or required additional documentation. These applications were on average 1–2 weeks old, adding to the time it took to conclude the process.”
Banks reported that the volume of applications and the availability of IT platforms and KYC documentation had an impact on processing speed. Four banks noted that the volume of applications negatively affected speed, while two reported improvements due to better access to technology. The Central Bank added: “Four of the six banks reported placing more emphasis on strategies to improve the speed of account opening such as process automation, staff training, electronic monitoring of application status and customer queries, and tracking key performance indicators (KPIs).”
The Central Bank concluded that while nearly all applications were processed on time, some gaps remain in tracking incomplete applications. It noted that financial institutions are taking steps to address delays, and improvements in processing speed are expected in the future. The Central Bank remarked: “The results revealed that banks processed nearly 100 percent of the applications received for new deposit accounts during the period reviewed. On average, only a low fraction of applications remained unprocessed over the half-year period. Banks still noted that delays in processing were impacted by incomplete applications, relative to the required due diligence documentation, which added an average of 1-2 weeks to the wait period from the account request.”
