Dennise Williams, Staff Reporter
Keith Duncan, chief executive officer of JMMB Ltd. - RUDOLPH BROWN/CHIEF PHOTOGRAPHER
THE SPANISH-speaking Caribbean is the next stop for Jamaica Money Market Brokers (JMMB).
In an exclusive interview with Wednesday Business, Keith Duncan, group chief executive officer, said that the company will be entering the Dominican Republic money market this year with Costa Rica to follow.
"Latin America is a blue ocean of opportunity," Mr. Duncan said Friday at JMMB's Haughton Terrace headquarters.
"We will be taking the JMMB business model to these countries because as you know, Jamaica is a mature market with many players. In the Dom Rep and Costa Rica the money market is not as developed as Jamaica and so we will be pioneers there. Interest rates in the Dom Rep are high but access by the average man isn't available - a situation similar to Jamaica in the early days before JMMB."
NEW OFFICE IN THE DOMINICAN REPUBLIC
Mr. Duncan explained that JMMB will be setting up an office in the Dominican Republic and bringing staff from there to Jamaica to be immersed in the JMMB culture and trained in the company's business model. As for Costa Rica, "we are currently looking for a country manager and individuals to train."
However, the company does not have to look too far for fluent staff members, as their International Business Development Officer Leo Williams is fluent in Spanish and French.
According to a senior JMMB executive, "Actually, the opportunities in the Central American Free Trade Agreement (CAFTA) market is being spearheaded by Leo."
The strategy, as explained by the senior executive is as follows: JMMB will set up offices with an existing securities firm and Mr. Williams will give seminars to gauge the appetite for JMMB products.
The executive said further, "By another four to six months we will evaluate the enthusiasm for JMMB in the Dominican Republic and that will determine our approach to Costa Rica."
With the focus on CAFTA, the rest of the Caribbean has not been forgotten. JMMB's subsidiary, Caribbean Money Market Brokers (CMMB), with offices in Trinidad and Tobago and Barbados is currently waiting on regulatory approval to open offices in Guyana.
And North America is next on the company's radar.
Mr. Duncan said that JMMB is waiting on regulatory approval to open offices in New York and Florida.
The senior executive gave further details: "We will be focusing on setting up offices where Jamaicans and West Indians are located. And since the returns on the U.S. money market funds are somewhat thin, we will be encouraging them to invest in Jamaican instruments to earn higher returns."
IMPORTANT FORAYS
Now, these forays outside of Jamaica have been very important for the success of JMMB. The company recently announced net profits of $1.3 billion, which was 7.5 per cent better than in 2004. Approximately 30 per cent of the net profits came from outside Jamaica.
However, while admitting that Jamaica is a mature market, Mr. Duncan said that the company would seek to grow Jamaican revenues through greater personalised service.
"Our financial planning service (FPS) is where we will see growth in the Jamaican sector," he said. "Our staff has been trained to sit down with clients, to work out a plan for their financial life. It is the heart and genuine care we have for our clients that will set us apart from the other financial institutions."
