JMMB Group to Roll-out New Payment Solutions & Bolster Diversification Strategy

The JMMB Group during its annual general meeting announced the roll-out of new payment solutions that are designed to meet the needs of key client segments including the ‘underbanked’ or those underserved by the financial services sector, and small and medium-sized enterprises (SMEs). These new solutions will include the launch a remittance prepaid card for individuals and point-of-sale and scan-to-pay payment options for SMEs. 

In making the announcement during the recently held annual general meeting (AGM), general manager, digital services at JMMB Group, Gifford Rankine highlighted that JMMB Group’s digital journey is in keeping with the company’s digitization thrust to enhance client experience by providing an omni channel experience and improve operational efficiency. Rankine noted that the pandemic has accelerated acceptance of digital channels and as such JMMB Group is seeking to better serve its clients by responding to their changing needs, preferences, and the changes across the industry. Adding, “Will that mean that we will be closing all our branches, most certainly not, instead we are looking to serve our clients where they are, (with our digital offerings).” In giving further details, the digital services executive shared, that currently a selected group of SME clients are piloting its new point-of-sale terminals and its scan-to-pay payment solution, with a view of a full roll-out in the near term. These payment solutions will allow especially smaller businesses to enable merchants to accept credit/debit card payments using various methods and, provide their clients with easier and more convenient ways of making payments in the market. 

Keith Duncan outlined, “These payment systems (point-of-sales, mobile point of sales) as well as our corporate Moneyline are important to our revenue streams but most importantly meeting the needs of the client...this is a critical part of the whole ecosystem and where we are going as a Group (in serving especially) the SME segment. We want to be able to facilitate the growth of our clients in the same way (that JMMB Group, has seen its growth over its 30 years from a single establishment to regional presence).” Adding, “We want to empower clients along their growth path and hence we have been focused in the last 3 years in building out (solutions) to serve this segment (in a better way).” As such JMMB Group’s SME resource centres which operates in Jamaica and Trinidad and Tobago, was established to add value to its SME clients, through the provision of financial partnership, resources, innovative financial solutions and a network of SME professional resources, to support them throughout their businesses’ life cycles, thereby, providing the necessary support for growth, and filling the gaps that currently exist in the financial services sector. 

As part of this build out of solutions to serve SMEs and corporate clients, JMMB Group through its subsidiary, JMMB Securities Limited has also launched its first private equity vehicle raising initially J$1.5B from investors to complement its own investment. This investment vehicle will provide much needed funding to largely mid-sized companies in needed of equity funding to fuel growth and allow them to take advantage of opportunities while providing investors with above-average, risk-adjusted returns. This will allow JMMB Group to serve its business clients along its entire journey helping them to move from small to large. 

These solutions build on the foundation that JMMB Group has laid across the Group, having introduced its Visa-enabled debit card, the recent roll-out of intelligent automated teller machines (ATMs) and the final leg of the standardization of its banking platform across the region to drive operational efficiency and ensure that clients can have a ‘One Group, One Client, One Experience’.

Build-out of Diversification Strategy 
In speaking to the deepening in its diversification strategy, Duncan revealed that it continues to explore inorganic growth across the region to either bolster or expand its current business lines, in a bid to serve the financial needs of clients. The JMMB Group CEO revealed that through its subsidiary in Trinidad and Tobago, JMMB Express Finance (T&T) Limited (JEF), is in the process of making a minority stake investment of 19.9% ownership in Bayshore Finance (T&T) Limited (Bayshore), which is a privately owned company in Trinidad and Tobago that provides insurance premium financing solutions to retail and corporate customers.

This acquisition of a minority stake in Bayshore is a strong strategic fit and is expected to allow JMMB Group to participate in the future growth of a solid and innovative company unlocking opportunities for increased market penetration and accretive synergies. This transaction is subject to receiving relevant regulatory approvals from the Central Bank of Trinidad and Tobago (CBTT).

Earlier in August, JMMB Holding Company, SRI and its parent JMMB Group Limited, announced that it had received final regulatory approval for the purchase of 100% of the shares in Banco Múltiple Bell Bank, S.A. in the Dominican Republic, as well as merger of that entity with Banco Ahorro y Crédito, JMMB Bank, S.A., a savings and loan bank, acquired by JMMB Group in 2014.

In sharing further diversification plans, Duncan noted that the entity was seeking to also deepen business line diversification by looking to capitalize on the growth potential in the commercial real estate market, with an initial development investment of J$5B, targeting the development of commercial, warehousing and business process outsourcing (BPO) projects outlined Duncan. Currently, JMMB Group is building out over 160,000 square feet of real estate in Downtown, Kingston, Mandeville and Liguanea, which is expected to house its corporate offices and other operations. 

JMMB Group Core Earnings Remain Solid 
Patrick Ellis, chief financial officer at JMMB Group, during the Group’s financial performance highlights noted that the diversification strategy across the region, business line and segment, continues to ‘pay dividends’. 

As evidence of this for the 2021/22 financial year, JMMB Group hit its highest ever profit of J$12.02 billion, which represents a 56% jump year-over-year. The Group’s operations in the Dominican Republic, contributed 23% or J$2.8 billion of net profit, while its Trinidad and Tobago operations added 7% or J$768 million to net earnings, which represents a 400% growth in that country’s profit year-over-year. Jamaica’s performance remained stable adding 28% or J$3.4 billion to the Group’s bottom line.

Additionally, the Group’s 23.29% investment in Sagicor Financial Company (SFC) complemented its core operations, contributing 42% of earnings. JMMB Group reeled in approximately J$5.03 billion in share of profit of its associate in the 2021/22 financial year and amassed J$1.1 billion in dividends. 

Ellis shared, that the company’s share in SFC, is expected to add further value with the recent acquisition of Ivari, a leading middle market Canadian life insurer, by Sagicor Financial Corporation (SFC), thereby redounding to the benefit of shareholders.  As the single largest shareholder in SFC, JMMB Group expects this transaction to be materially accretive, as Ivari is projected to contribute significantly to SFC's earnings. “We are excited by the return on investment that SFC continues to provide, and the added value to our shareholders.  This move also complements our business line and geographic diversification strategy.”