Feb 2017 Financial News

GK to add 20 agent banks

Feb 20, 2017

GraceKennedy group plans to add at least 20 First Global Bank branch networks across its Western Union locations in Jamaica later this year, using the agency banking model.

With the agency banking regulations approved by the Bank of Jamaica, CEO of the GraceKennedy Group Don Wehby expects that the initiative will be a game-changer for First Global and will also bring greater support for financial inclusion across the island.

“What you are going to be seeing is a more integrated financial service for the GK Group where at some of these locations you can buy your microinsurance, top up GK MPay and you can do banking as regulated by agency banks,” Wehby told the Sunday Finance.

The BOJ has proposed that services to be offered by agents include delivery of customer account statements and payment instruments such as prepaid cards on behalf of deposit-taking institutions, cheque encashment, deposits and withdrawals, electronic transfer of funds, account balance enquiries, and the collection of ‘know your customer’ and due diligence documentation.

However, deposit-taking institutions shall remain responsible for the analysis or verification of the adequacy and acceptability of the documentation.

Western Union has more than 150 locations and controls roughly 50 per cent of Jamaica’s remittance market which is valued at US$2.1 billion.

Wehby is leveraging relations through GraceKennedy Money Services (GKMS) to have First Global’s contact points greater than Scotiabank and National Commercial Bank Jamaica.

The GraceKennedy Group, which celebrated its 95th anniversary last week, lauds itself as a consumer-centric company incorporation digitisation in line with global trends. The company, through GKMS, has since launched its mobile payment platform, GK MPay, a system expected to bring greater support for financial inclusion across the island.

Described as a ‘revoluntionary platform’, GK MPay permits users to execute a range of transactions, including: bill payment, top-up of phone credit, make peer-to-peer transfers, and even purchase items from established merchants or the sidewalk vendors from a mobile device.

GKMS has also received approval from the BOJ for users of the GK MPay to receive Western Union remittances via the platform.

Source:
BY KARENA BENNETT
bennettk@jamaicaobserver.com
Business reporter
Jamaica Observer
Sunday February 19, 2017    

http://www.jamaicaobserver.com/business/GK-to-add-20-agent-banks-_89943