Jamaica National Group is going after new business from the public sector and is making its approach through the bodies that represent them.
JN’s banking subsidiary has already signed a memorandum of understanding with the Jamaica Teachers’ Association, which represents approximately 20,000 educators, notwithstanding that the group has its own credit union, which also offers financial services.
JN Bank, which is the third largest of Jamaica’s commercial banks, is looking for a channel through which to grow its loan book beyond its large mortgage portfolio. Based on the most recent central bank industry data, JN Bank’s loan portfolio was estimated last September at $84 billion or 12 per cent of a market that was valued at $682 billion.
The JTA Cooperative Credit Union, JTACCU, with which JN Bank will be competing, has assets of $13 billion, inclusive of a $9-billion loan book and deposits of $10 billion, representing the savings of teachers. The JTACCU’s membership was estimated at 27,948 at the end of 2017.
JN Bank is an old institution but only entered the commercial banking arena two years ago and is seeking avenues to grow.
“One of the first areas we decided to look at is public-sector workers,” said JN’s chief for business banking and public sector engagement, Ryan Parkes. “The JTA is one such entity … . we have been able to execute a partnership agreement with them that would be able to cater to their needs holistically.”
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