Data scientists backed by Sagicor ask that Bank of Jamaica use blockchain to expand the RTGS window

 

During the 2025 Sagicor Innovation Challenge hosted by the University of Technology, Jamaica and Sagicor Group on April 22, 2025, data scientists from the University of Technology Jamaia and members from Sagicor Group called for the use of blockchain’s distributed ledger to expand the window for inter-bank transfers in the island of Jamaica.

This call for action took place during one of two panel discussions, “FinTech: How Can We Use Blockchain to Increase the RTGS Time Window by 2027?” featured leading voices in technology and finance. Moderated by Dr. Lisa Facey-Shaw (left), Associate Professor, School of Computing and Information Technology (SCIT). Dr. Facey- Shaw specializes i Innovation & Emerging Technologies, ICT in Education, Programming, Emerging Technologies and Information Systems Research. Pannellists (from left) Mr. Mario Griffiths, Director of Payment System Policy & Development, Bank of Jamaica, Mr. Aldane Milton, AVP of Shared Services IT, Sagicor Group Ms. Annette Osbourne, Vice President, Banking Operations, Sagicor Group and Dr. Nadine Barrett- Maitland, Senior Lecturer, SCIT, UTech, Jamaica.

Currently transfers officially end at three in the afternoon after opening at seven o clock in the morning. According to Annette Osbourne, Vice President, Banking Operations, Sagicor Group, “what we find is that our clients are demanding additional windows for the closing of transactions.”

“At close to closure of gateway by regulators there is a floodgate of clients processing transactions. Unfortunately for many clients, it’s the next working day. This impacts on salary and vendor payments,” she continued.

The JamClear®-RTGS, managed by the Bank of Jamaica (BOJ) is a Real Time Gross Settlement (RTGS) system that provides the mechanism for participants to settle large value and time critical payments, which was implemented by BOJ in February 2009.

JamClear®-RTGS consists of two functional modules – RTGS and Payment Origination (PO). The RTGS and PO applications are closely integrated but are independent of one another.

In JamClear®-RTGS, payment instructions (transfers) are tested for funds availability and are settled individually, continuously in real time, across settlement accounts in the BOJ, providing the sending participant has sufficient covering balance or credit in its account.

Mario Griffiths, Director of Policy and Development at the Bank of Jamaica noted that in 2024, the organization processed J$34.9 trillion dollars through its core settlement infrastructure. Based on existing rules the facility opens at seven a.m. and closes at 3 p.m.

Annette Osbourne added, “extension is something that financial institutions have been lobbying for hoping to get an extended window.”

Dr. Nadine Barrett- Maitland shared, “blockchain technology can support transfers 24 hours, seven days a week. It is a decentralized method of payment. Once a payment is initiated, its chained right across the block. It is immutable and communicated to everyone.”

She emphasized that everything within the blockchain is encrypted and safeguarded. This eliminates the need for third parties, such as banks, making it possible to process salary payments instantly—regardless of which bank an employee uses—without waiting the typical one or two business days for clearance.

She, however, noted the reluctance of many banks to use Blockchain for transfers. “Most of the financial sectors using block chain use it for internal transactions. JP Morgan implemented first system after which others adopted by a few financial institutions.

Dr. Barrett -Maitland noted the blockchain has been used for intellectual property protection, using smart contracts. The health care sector has made good use of block chin

Other presenters on the panel acknowledged that between institutions that blockchain facilitates Peer to Peer payments in real time between banks. “Blockchains enables a smart economy. Block chain many uses are for cryptocurrency. Can be used alongside Jamdex (digital currency owned by the BOJ) to open up the economy for many new services”

In response, Bank of Jamaica Vice President, Mario Griffiths said that “At the BOJ if policy objective about access for business community we will take into consideration.”

However, he noted that there were considerations about cyber security. “Our RTGS has never been hacked. If there is a system which operates 24 -seven when do we provide updates to system,?”

He also noted that a 24 hour operation for RTGS would also call for new staffing models for IT operation and also new infrastructure which would come at an additional cost.

Participants noted that blockchain could be used for intermediary systems, including programmable payments as all banks have the same ledger. BOJ would be a participant for oversight and less burden for oversight.

Ms. Osbourne commented, “In the area of AI some concerns about manpower would be addressed. The research shows that banks are behind. We need to revisit and make the environment one that is conducive to growth.”

Mr. Aldane Milton, AVP of Shared Services IT, Sagicor Group noted that data shows that 65 per cent of people in Jamaica use cash. The payment delay is one reason for this.

The BOJ representative said that public private partnerships are key to any progress in the proposal.” Strategy with short term and long term outcomes with ability to monitor outcomes. Also to be considered is the development of individual banking infrastructure and the cost of marketing.”