Dressed in her crisp bank uniform she dealt with my request efficiently. Her hair was cut short and slicked down to her head; it seemed to suit her no-nonsense approach to her job. I flicked through a brochure listing the fees for the bank's services. I imagined the process of compiling these fees, thinking of any possible transaction, to make sure that the customer did not get away with anything for free. A fee to deposit money, a fee to withdraw, and a fee if you do nothing and then another fee if you don't pay your fee on time. I asked the lady if there was anywhere I could get an idea of the interest rates available, she looked puzzled, "Interest rates?"

Another employee suggested I check the website for savings account interest rates, but a later check would make me none the wiser, of what would be my return if I deposited my savings into this prominent bank. By comparison the rate of return for some of our unregulated investment opportunities are well publicised, some boast 10 - 18 per cent a month. I have heard so many calculations done, based on these rates. A $20,000 deposit today easily a millionaire within three and a half years, your principal would be paid back as early as 7.3 months.

Speculations

There have been countless speculations as to the nature of these schemes, from pyramids, money launderers to money market gurus who just can't lose. While they say if it sounds too good to be true, it usually is; there was a hint of sour grapes from the banking sector. And no doubt the banks have seen deposits moved to these organisations with higher rates of return.

Were the banking sector more competitive, offering better returns on investment and less administrative costs, then the Jamaican public would have been less inclined to embrace these risky schemes, the opportunity cost would have been greater.

Depositors who are eager to finally get some returns on an investment, took the risk and some may cash in at just the right time. Others have long got their principal and feel they really have nothing to lose. There are those who have a lot to lose, and what will result, a bitter feeling those from who lost out watching their money in the pockets of those whose timing was better. But who is left with the shortest end of the stick are the rest of us who never invested or profited but may have to deal with the social and economic consequences of the failure of such institutions.

So, while the Bank of Jamaica and other financial institutions are rightly looking at these new 'unregulated' entities, and the threats that they might pose, these bankers need to look to themselves to see how they can really offer a service, and a return for their depositors.

These latest 'unregulated' institutions might fall, but as long as we have a weak banking sector, depositors will always be attracted to schemes. For many, even no interest in better than banking; the 'partner' scheme has no administrative costs even though it provides no interest. But then again, I still am not sure whether my bank pays interest!