EY helped Trinidad and Tobago develop a strategy to become a regional FinTech hub by benchmarking other global hubs, assessing T&T's local ecosystem, and creating a tailored multi-year roadmap. The roadmap includes short-term initiatives to build foundations, medium-term flagship programs to jumpstart adoption like a digital identity system, and long-term programs to stimulate growth. Successfully implementing this strategy could help T&T achieve its national Vision 2030 development goals by positioning the country as a leader in financial technology.

1. How EY helped
Trinidad & Tobago
(T&T) transform
into a regional
FinTech hub

2. 2 | How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub

3. 3How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub |
How can a regional financial services
hub maintain its position in the face
of rapid innovation?
T&T wondered how to embrace and accelerate the development
of FinTech in the country.
The financial services sector is a notable contributor
to the T&T economy, at approximately 8% of GDP,
with specializations in areas, including asset
management, investment banking and business process
outsourcing (BPO).
All over the world, the financial services industry has
experienced rapid innovations such as mobile apps,
automated wealth managers and blockchain1
. FinTech
hubs such as Singapore and London have reaped
the benefits as enabling regulators, innovators and
established players come together to enhance the quality
and reach of financial services2
.
In this context, the T&T IFC wants to build on this existing
strength from collaboration and digitalization, and establish
T&T as a credible, robust and vibrant FinTech hub.
“For us to remain competitive and compete at a global
level, we need to embrace and integrate the use of FinTech
further into our economy,” said Omar Sultan-Khan, CEO of
T&T IFC.
Source:
1. https://www.forbes.com/sites/danielnewman/2019/01/16/top-7-digital-transformation-trends-in-financial-services-for-2019/#35ceb0955310
2. https://isca.org.sg/media/2240633/isca-icaew-fintech_innovation_perspectives_from_singapore_and_london-final.pdf
In the eyes of the T&T IFC, FinTech is not only seen
as an enabler for the financial services sector but for
other sectors as well. With the use of FinTech, there
will be greater ease of conducting business through a
digitally-connected economy, with enhanced security,
accountability and of course, cost savings on both the
sellers’ and buyers’ sides.
With time, FinTech initiatives are expected to increase the
country’s technology-related capabilities and empower
talent by providing avenues for application, which aligns
with T&T IFC’s objectives of attracting foreign investments
to the country and driving sustainable job creation.
With this aim in mind, T&T IFC enlisted EY teams’ support
to develop a strategy to accelerate the growth of FinTech
in the country.

4. 4 | How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub
Combining global leading practices and local understanding to create a tailor-made
strategy, EY teams recommended the global positioning of the hub, helped the T&T IFC
establish a suitable governance model for the local FinTech ecosystem, and provided a
multi-year roadmap for FinTech initiatives.
EY teams drew their recommendations from a benchmarking of global FinTech hubs, an assessment of T&T’s local ecosystem,
and the T&T IFC’s inputs from collaborative workshops.
Drawing lessons from global best practices
At the outset, the T&T IFC wanted to gain a perspective
on what FinTech initiatives other hubs have undertaken —
what has worked, what hasn’t and what are the key
learnings. In order to achieve this, EY teams benchmarked
14 different hubs, with the aim to provide the T&T IFC with
insights on hub-level trends and identify leading practices
for T&T to leverage.
In benchmarking of global FinTech hubs, the T&T IFC
and EY teams found that an ideal FinTech ecosystem
encompasses 6 key elements and a multitude of
stakeholders:
1. A country’s enabling environment, including factors
such as market competition, collaboration with
incumbents, ease of access to local and foreign
markets, and presence of incubators/accelerators.
2. Availability of talent pool including supply of
local financial services, science, technology, and
engineering professionals, as well as accessibility to
foreign entrepreneurial talent.
3. Access to capital including availability to public (grants)
and private (venture capital) sources of funding across
the spectrum of risk-capital.
4. Regulatory openness toward FinTech including
government support for start-ups and targeted
policies, such as availability of regulatory sandboxes.
5. Sustained demand from businesses and consumers,
including the level of FinTech adoption and digital
readiness.
6. Internationalization initiatives including establishing
FinTech regulatory bridges for exchange of knowledge,
technology and talent.
These hubs were also quantitatively assessed using
globally established indices on an array of factors that
measure innovation-enabling abilities. Such composite
quantitative and qualitative analyses were conducted in
conjunction, to allow the T&T IFC to form a holistic view on
each FinTech hub and its ecosystem and provide insights
into the hub’s best practices.
The ensuing leading practices highlighted that while
there were multifaceted approaches a country could take
to build a leading FinTech hub, there are four common
themes that will emerge.
1. Enabling national digital infrastructure
For example, India, with its large population, is
focused on building nation-wide digital infrastructure
(also known as Digital Stack) such as unique digital
biometric identity for citizens and an interoperable
payment network. Such market-supporting
infrastructure fosters a collaborative atmosphere
across the government and industries to solve societal
problems with FinTech.
2. Regulatory prowess to position themselves as
“magnets” for attracting FinTechs
For example, Gibraltar is placing emphasis on
establishing FinTech-applicable laws for blockchain and
digital ledger-based businesses, positioning itself as
“the crypto harbor”. Mexico has also codified specific
policies aimed at the FinTech sector, with financial
inclusion as the objective.

5. 5How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub |
3. Internationalization strategy that focuses on
regional and global branding
For example, Singapore positions itself well on the
global FinTech map by actively hosting high-profile
FinTech events, including the world’s largest FinTech
festival (Singapore FinTech Festival). The country
also maintains numerous working relationships
with other hubs to become part of evolving global
information corridors and stays abreast of FinTech-
related innovation.
4. Encouraging grassroots innovations which solve
societal pain-points
For example, China is starting to target its payments-
based innovation at other industries with existing
pain-points. Well-established payments players have
started to add use-cases to their payments platforms
to integrate themselves into consumers’ daily lives and
enable national infrastructure such as a social credit
scoring system.
The questions facing the T&T IFC and EY teams at the
end of this initial global benchmarking phase were how
to leverage these themes while building a relevant model
for FinTech in T&T, how will FinTech in T&T get off the
ground and take flight? Will a copy and paste approach
work in some cases, if not all? Will the ecosystem have to
start from scratch on all fronts? How will the initiatives be
prioritized if found worthwhile, and who will lead them?
“As countries look to adopt different stances toward
FinTech and its emerging technologies, it is critical for T&T
to identify a niche position and ensure all stakeholders
are in it together,” said Varun Parmar, Director, FinTech
Strategy, Ernst & Young Solutions LLP.
Deep diving for local insights
The identification of global leading practices was the first
step in T&T’s FinTech journey. The next step was to assess
the local ecosystem to find champions, recognize strengths
and leverage existing platforms. Together, the global
benchmarking and local assessment, would lead towards
the formulation of T&T’s FinTech strategy.
To assist the T&T IFC in obtaining a broad view of its
FinTech landscape, EY teams provided an analysis of
T&T’s ecosystem elements, namely: Demand, Talent,
Policy & Capital. This was done primarily via interviews
with key stakeholders as well as performing an end-
consumer survey. The stakeholders that participated in this
assessment included government agencies, regulators,
universities, financial institutions, investors, infrastructure
providers, and end-consumers of financial services. Some
of the key findings from this assessment are as follows:
1. Demand — A key driver of a FinTech ecosystem’s growth
lies in the demand for FinTech solutions and adoption
of such technologies across government, businesses,
financial institutions, and most importantly, the
consumers.
While FinTech adoption is not considered mainstream
in T&T with consumers’ high preference for cash
transactions, it was firmly established that evolving
lifestyles and customer behavior will continue to
drive demand for efficient and accessible financial
products and services. The highest potential demand
for FinTech solutions was found to be e-Money and
investment & financial planning solutions, with 70% of
the findings highlighted that the ability to customize
FinTech solutions that are aligned to consumer needs
and preferences was the most critical driver for future
adoption of FinTech solutions in T&T.
A key pain-point observed in this exercise was
access to credit by end-consumers, even salaried
professionals with long-established credit histories.
From a business perspective, insights revealed that
opportunities for payments and lending solutions exist
within the Small & Medium Enterprise (SME) segment.
Huge potential for FinTechs to enhance government’s
e-administration capabilities also exist, including
building upon a digital identity platform for citizens.
These findings proved that the economy was ripe for
the introduction of novel FinTech solutions.

6. 6 | How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub
2. Talent — It is essential to note that FinTech innovations
can only materialize when there is a wealth of human
capital to build and propagate these solutions. The
availability of local talent, combined with the ability to
attract overseas talent, is a key enabler to the success
of any budding FinTech hub. Such talent is drawn
from academia, entrepreneurial and technological
communities and traditional financial institutions.
EY teams underscore that T&T has access to a huge
and promising pool of local talent, given its regional
prominence as a financial center in the Caribbean,
and its considerable emphasis on Information &
Communication Technology (ICT) education within
tertiary institutions. The government’s policy of free
education for all from nursery to secondary school
has led to the country being acknowledged as one of
the most educated countries in the world with literacy
rate exceeding 98%. In addition, thousands of persons
benefitted from free or partially-free tertiary level
education.
More can be done to help T&T gain momentum in
harnessing the full potential of this prospective
FinTech talent pool. These include facilitating the
development of further human capital in ICT and
Science Technology Engineering & Math (STEM)
disciplines as a key objective through curriculum
reforms, as well as adopting a more accommodating
stance to skilled foreign talent, especially
entrepreneurial talent.
3. Policy — Another key element for a FinTech hub’s
success lies in the government stance, as well as
the policies and regulations that will encourage
the development of FinTech sector in a country.
The government acknowledges the importance of
the regulatory environment and has been working
closely with stakeholders to seek opinions on relevant
legislation. In December 2018, for example, the
Central Bank released a consultation paper of its
e-money policy to codify the boundaries for upcoming
e-money and intermediate payment services providers
in the country.
Other opportunities identified via this exercise were
in the areas of RegTech, development of shared
government platforms, and offering government
incentives for the development of FinTechs.
4. Capital — For the sustainable growth of any FinTech
hub, the continuous inflow of risk-capital is particularly
important. While T&T is considered a wealthy nation
relative to global standards, several challenges were
found to be present when it came to obtaining funding
from financial institutions, and angel investors/venture
capitalists, as they remain largely embryonic.
An understanding of the local environment and the
needs of key stakeholders presented T&T IFC with many
insights in areas of opportunities and in turn be integral in
formulating a strategy.

7. 7How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub |
Creating a tailored and targeted strategy
T&T’s FinTech hub positioning should leverage on the
country’s key strengths and leading position as a strong
regional financial center. Given that the country’s ecosystem
is in its nascent stage, EY teams recommended a multi-year
roadmap, which consists of short, medium, and long-term
strategic initiatives, to allow T&T to develop and explore its
possible fields of play for FinTech sectors in the coming years.
These initiatives include broader essential programs that will
build the FinTech capability of the nation; flagship programs
that can promote T&T’s uniqueness as a FinTech hub; as well
as other initiatives focused on stimulating the growth of the
ecosystem. The initiatives are in accordance with the key
elements of an enabling environment, the availability of the
required talent pool, access to capital, regulatory openness,
demand, and building international linkages.
The short-term initiatives are focused on building a strong
foundation with the necessary structure. Within the next six
to nine months, these essential programs include forming a
FinTech working group and developing a business case for the
country’s FinTech roadmap. These initiatives will help T&T to
build a solid base, which in turn, will provide a springboard for
the T&T’s FinTech hub.
Flagship programs in the medium-term are aimed to jumpstart
the FinTech ecosystem. EY teams proposed two flagship
programs that are pivotal to jumpstarting FinTech adoption in
T&T. These programs are aimed at solving existing pain-points
in the financial sector and broader society and are ideated
with T&T’s strengths in mind. With these flagship programs —
KYC Utility/Digital Passport and Cashless Society — T&T
can position itself to be well known as a hub for innovation
in the region, as well as a technologically advanced and
progressive nation.
Long-term initiatives are aimed at stimulating T&T’s
ecosystem growth. EY teams proposed eleven long-term
initiatives with the aim of continuing to facilitate innovation
for the local ecosystem in the long run. These initiatives cover
various aspects including development of infrastructure,
enhancement of education systems, encouraging industry-
based solutions and building on T&T’s brand as a FinTech hub.

8. 8 | How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub
Source:
3. https://www.planning.gov.tt/sites/default/files/Vision%202030-%20The%20National%20Development%20Strategy%20of%20
Trinidad%20and%20Tobago%202016-2030.pdf
Ushering in development in
FinTech and beyond
Successfully implementing the roadmap will contribute to driving
T&T’s Vision 2030
Vision 2030, a national developmental strategy
formulated by the government of the Republic of Trinidad
and Tobago in 2015, is a 15-year roadmap expected to
“[build] the pathway to the future that will transform
Trinidad and Tobago into a developed country, sustaining
growth and development and optimising the quality of life
of all citizens.”
Vision 2030 revolves around five developmental themes,
namely: putting people first, delivering good governance
and service excellence, improving productivity through
quality infrastructure and transportation, building globally
competitive businesses and placing the environment at
the center of social and economic development.3
Given the scale and contribution of the financial services
sector, the T&T IFC believes that FinTech will be one of the
key constituents towards achieving T&T’s national ‘Vision
2030’ development plan objectives.
The sentiment is shared by the EY teams working on the
project and informed the team’s grassroots approach to
creating the strategy. “Beyond applying knowledge and
experience on FinTech, it is important to get a feel of
the ground sentiments and understanding first-hand the
challenges of the people. Financial technologies provide
an opportunity to address these pain points and transform
lives” says Patrick Hanna, Partner, EY Transaction
Advisory Services Leader, Ernst & Young Solutions LLP.
Both T&T and EY teams recognise that when
implementing the strategy, the unity of different
stakeholders is key to success. “While T&T’s landscape
presents ample opportunities, there are some challenges
that exist nevertheless, including the low adoption for
digital payments and existence of robust cybersecurity
measures. I believe, with the government and T&T IFC
support, these can be overcome, and we are looking
forward to see how FinTech will help T&T Vision 2030”
said Maria Daniel, Partner, EY Transaction Advisory
Services Leader, Ernst & Young Services Limited.
As a leading financial centre, T&T is well-poised to
emerge as the Caribbean’s financial nexus with its strong
presence as a regional hub. EY teams and T&T IFC will
work together to pilot an approach to help T&T realize
the nation’s dream of forging an identity as a vibrant and
recognized FinTech hub known to many.
“I look forward to seeing our roadmap come to fruition”,
says Richard P. Young, Chairman, Trinidad & Tobago
International Financial Centre.

9. 9How EY helped Trinidad & Tobago (T&T) transform into a regional FinTech hub |
Varun Mittal
Global Emerging Markets FinTech
Leader, Associate Partner
+65 94 450 420
varun.mittal@sg.ey.com
Contact us

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