Jamaica’s first digital bank kicks off with free money Loop Jamaica

Black Immigrant Daily News

Jamaica’s first digital-based all-inclusive loans company has announced its presence in a big way.

The company is handing out $50,000 grants to eight individuals within its targeted clientele for Christmas with the hope of planting a ‘Seed’ in their lives toward their financial freedom.

Seed Jamaica is led by Michael Lee-Chin Jr., the son of bank owner Michael Lee-Chin along with banking and finance experts Andrew Paterson and Adrian Dunkley. Dunkley is known for his roles in compliance, risk management and communications.

The company is currently awaiting approval from the Bank of Jamaica to launch into operation “but we can’t really wait to do this,” Dunkley told Loop News of the grant initiative.

“We had this on our planning schedule to give out these grants. There is no expectation of benefit. We are waiting for launch but there are people out there who need it and Christmas is coming up. That’s why we launched this initiative,” Dunkley explained.

The company has partnered with social media influencer Danar Royal – known more popularly as Dan Dan – for the giveaways.

“They [the applicants] do a video and tell us what they plan to do with the money [and] we will need some amount of information from them…to make sure it’s not impersonation – so there is a level of Know Your Customer (KYC) then there is a very simple interview, nothing big,” Dunkley said.

“The plan is to expand it. This is going to be a consistent offering, not just eight… We know there is a risk. We know they may just take the money and splurge for Christmas but we can’t really wait on anybody else to do this,” Dunkley said noting the need to make a real contribution to the financial upliftment of those the bank will serve.

Seed Jamaica is a digital bank that is targeting “primarily individuals who can’t get a loan from anyone else. Individuals who never even filled out a form [before], who actually need the support but a bank or credit union or [other] financial institution won’t take a chance on them,” Dunkley said.

The grant initiative kicked off this week and is intended to be a regular feature of the company’s operations. Timing the commencement for Christmas represents an opportunity to plant a ‘seed’ in the lives of those who will benefit in the yuletide season, Dunkley explained.

“People are frustrated and are not being given the right opportunity to do what they need to do and we understand the time sensitivity…,” he said.

“…Working in traditional financial entities, I understand the flaws in the way we assess people and in the way we treat them,” he said of the traditional risk assessment process and the company’s decision to go against the grain to create “financial freedom” for its target market.

The company’s business model takes a completely different approach from traditional banking. Seed will be taking the risk to support those typically shunned by traditional lenders.

“We are redefining the way loans work by creating an inclusive service system that does not discriminate by socioeconomic status, but based on customer needs and wants,” the company said in its press release.

“It is about supporting the financially new. We see that uncertainty as a positive. They have untapped potential that we can basically grow thus the name Seed,” Dunkley said.

“We are taking a risk on them. It is a big risk but this is actually my expertise,” the fintech executive, who has worked for over a decade in compliance and risk management, said.

iStock photo

Seed embraces a new methodology of risk assessment that is now re-shaping banking.

“It is a methodology that focuses on growing individuals long term. We are ahead of the curve right now in terms of aspirational targets as well as the entire approach for the organisation,” he said.

Dunkley, in explaining the company’s approach to risk management and exposure said he is currently pursuing his PhD “in this brand-new approach on assessing individuals for risk – so we are covered on that.”

Seed isn’t focused on gaining market share in the sector now dominated by micro-lenders but instead on building the financial status of those who have not been reached.

“Our segment isn’t even on the radar of the microfinance target… There is a large segment of the population who can properly pay for loans but nobody will touch them so we see ourselves as a facilitator of financial freedom,” he said.

Discussions on financial inclusion have typically referenced the unbanked and underbanked but for Seed, this market segment is far more reachable than traditional banks have been willing to take on.

“There is a gap in the market that nobody is really trying to fill right now. They say they are, but they are not really trying to fill it because to fill it, you have to do things operationally. So, it’s being used more like a marketing ploy,” he reasoned.

By its business model, Seed will “actually [be] growing the microfinance market.”

“Once those people get with us and are able to develop themselves, then they will be able to pass onto more established entities who are able to take the risk on them,” Dunkley said.

By Tameka Gordon

NewsAmericasNow.com