Heavy capital investments to strengthen JN operations, improve service, expand reach

• February 24 2021
• http://www.jamaicaobserver.com/business-observer/heavy-capital-investments-to-strengthen-jn-operations-improve-service-expand-reach_215538

The Jamaica National Group made large capital investments during the financial year ending March 2020, as it sought to further strengthen the group's operations, improve service to members and employees, as well as expand its reach.

Among these investments was the expenditure of £25 million to establish a digital 'challenger' bank in the United Kingdom. The set-up allows customers to open an account in five minutes and access a loan in 11, as long as they provide the requisite documents.

“Many of you will recall the factors that led to that decision, which was really the absence of correspondent banking services, as you have all come to learn over the past year or two, in the UK we were literally chased out of banks, as no one wanted to bank a Caribbean entity,” Earl Jarrett, chief executive officer, told members and guests during the JN Group's 4th Annual General Meeting held largely virtually for the first time in the organisation's history.

The lack of correspondent banking services had resulted in operating costs growing exponentially to more than 42 per cent over a three-year period in the UK.

JN Bank in the UK officially launched in October last year, with the company being allowed to start operations without undertaking the normal probationary period required after receiving a licence.

During the financial year, the organisation also commenced efforts to establish a similar commercial bank in The Cayman Islands, with the conversion of its building society, JN Cayman, into a commercial bank.

“That application is now with the Cayman Islands Monetary Authority for review, and we are very optimistic that they will be supporting the application,” Jarrett disclosed.