Susan Smith, Staff Reporter
BLADES
MUSSON JAMAICA Limited has added a cambio service to its operations.
The new subsidiary, which is called Total Exchange Limited, is a licensed cambio located at 58 Half-Way Tree Road in St. Andrew. It is headed by chairman Paul Scott and general manager Wayne Ebanks, the former trading manager of GraceKennedy's cambio service, FX Trader.
Musson Group Chairman, Desmond Blades, told Wednesday Business that, "The company has interests in a number of things including insurance, property, telecommunications and we feel the cambio will be a useful addition to our balance sheet."
Total Exchange opened its door for business yesterday.
SHARES
Mr. Blades and his family control about 80 per cent of the shares in Musson, with the balance of the shares belonging mainly to employees. The companies he controls employ over 2000 workers.
Although the core of of the Musson business has been food distribution, the company has diversified, Mr. Blades said. "We can also invest in other areas which we feel will enhance the profitability of the company."
He added that, "It is always in the back of our minds that if we have a serious problem with food distribution we have other sources of income."
Mr. Ebanks who comes to Total Exchange with an MBA in banking and finance and seven years experience in the field, is confident that the strategy will succeed.
IT MAKES SENSE
In spite of reports from the Cambio Dealers' Association of Jamaica earlier this year that cambios are not as viable as they used to be because of increasing administrative costs brought on by anti-money laundering procedures, Mr. Ebanks says starting Total Exchange makes sense.
"The cambio industry is very fragmented. You don't have a strong network and there is room for a larger player to come," he said. The latest statistics from Bank of Jamaica indicate that there are 65 licensed cambios in the island, 22 of which are located in Kingston and St. Andrew.
He explained that cambios account for at least 40 per cent of the foreign exchange industry that is divided between the banking and cambio segment. The amount distributed between these two approximates US$5.5 billion per annum.
"The cambio section of the FE (foreign exchange) industry does about US$2.2 billion with the biggest player in the industry accounting for about 30 per cent of the cambio segment."
It will help to secure foreign exchange that the company needs and diversify the revenue base, Mr. Ebanks said. "It makes a lot more sense for the profit (from this kind of operation) to stay within the group."
Mr. Ebanks said the location of Total Exchange, on the fringe of New Kingston with adequate parking and security facilities, will attract the desired clientele. "Rather than go into New Kingston, we can transact business here."
EXPECTED TRANSACTIONS
He said that, "For the Half-Way Tree Road branch, we are expecting a quantity of about 6,000 transactions per month in the early stage of the business."
He said the company has further plans to expand within Kingston and St. Andrew and to the rest of the island.
Total Exchange will provide the basic services of purchasing and selling foreign exchange in cash, drafts or cheques. Wire transfer services, direct delivery and pick-ups for draft instruments as well as credits to customers' bank accounts are some of the value-added services. Its rates will be pulled from international interbank rates.
Mr. Ebanks assured that the service is fast, convenient and accurate and offers very competitive rates. "People and technology will make the difference."
Total Exchange is targeting both retail and commercial customers.
It employs seven members of staff and operates between the hours 9:00am to 5:00 p.m. from Mondays to Saturdays. In the next few weeks, Total Exchange will have its official launch and increase its service offerings, Mr. Ebanks said.
