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2008 Story of the Year SHOW ME THE MONEY Cash Plus and Olint reportedly sucked in J$150 billion to J$200 billion, what happened to all that money?

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16 years ago

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The rise and fall of Olint, Cash Plus, and the two men who ran these companies is by far the biggest story of 2008. Their activities impacted many in Jamaica, and as far north as the UK, USA, Canada and south to Trinidad and environs. These two men, David Smith and Carlos Hill changed and rocked the Jamaican financial landscape in 2008. They are both credited as the founders and architects of the alternative investment schemes that sucked in so much money, that it has left countless thousands still wondering where it all went and will they ever get their money back. One thing is for sure, high interest rate returns will have a very different meaning from now on.

The year started with Jitters over alternative investment schemes spreading to World Wise another recently started scheme. Jitters over the uncertainty of alternative investment schemes, following a ‘cease and desist’ order against Cash Plus spread to forex exchange trading entity World Wise Partners.

A few days later the Government finally decided to step in with the Attorney General and financial officials meeting on alternative investment schemes. An urgent meeting was convened between Attorney General Dorothy Lightbourne, officials of the Finance Ministry and Financial Services Commission (FSC), to make recommendations and guidelines to address the growing concerns over unregistered investment clubs. The instruction was given by Prime Minister Bruce Golding during a meeting with Finance Minister Audley Shaw’; minister without portfolio in the ministry, Don Wheby; FSC officials and representatives of the banking sector.

Golding said the number one priority was to protect the integrity of the country’s financial system and establish the requisite legislative framework for dealing with other investment schemes that may develop in the future.

In April, it is announced that Cash Plus is in turmoil with the Investment club in receivership. The five-year-old investment club Cash Plus Limited, which has been engaged in a number of legal battles over the past 12 months, is in receivership. Kevin Bandoian, a chartered accountant employed to Price-Waterhouse Coopers in the United States, was appointed joint receiver-manager. Later that month, every investors worst fear is realised when the police following investigations announce that Cash Plus has no money here to repay, cop tells court. Supporters of Carlos Hill, the CEO of Cash Plus, the collapsed alternative investment scheme, protest and demand his release from police custody outside the Half-Way-Tree Courthouse where Hill, his brother Bertram and Cash Plus’ chief financial officer Peter Wilson appeared. Head of the Organised Crime Investigation Division (OCID) Fitz Bailey revealed in court that Cash Plus has no money in Jamaica to repay its investors. “Based on what we have investigated there is no money, we have not identified any money in Jamaica to repay investors,” Bailey said. “In addition, a number of companies and assets said to be owned by Cash Plus turned out to be false.”

Early May and the Cash Plus boss is out on bail but cannot leave home between 6:00 pm and 8:00 am. Carlos Hill, head of the failed informal investment scheme, Cash Plus, and his brother, Bertram Hill, were granted bail in the Supreme Court, but with stringent conditions. Hill, who got bail in the sum of $15 million, was ordered to report daily to the Fraud Squad and slapped with a curfew order that requires him to be at his Norbrook, St Andrew home between the hours of 6:00 pm and 8:00 am. His brother, who the police said is a Cash Plus director, was offered $10-million bail, with similar conditions set by Justice Bertram Morrison. Bertram Hill will have to remain at his brother’s house as he resides in the United States. Both men were ordered to surrender their travel documents.

Next, it was Olint, considered by many to be the safest of them all. The May 16, 2008 headline reads Olint at the crossroads. The alternative investment scheme Olint Corp headed by David Smith now finds itself at a crossroads, with its next move determining the very existence of the popular foreign currency trading outfit. For the better part of the year, it has been unable to honour all its payout commitments, with many of its members exhibiting steadfast forbearance while the club’s founder attempts to put things right.

At the same time, Olint is fighting a court case against NCB and reports are that in the United States, banking house Wachovia is conducting a protracted due diligence report, thus making it impossible for Olint to provide timely payments to its members. To compound matters further, the Financial Services Commission (FSC) continues to call for Olint to register and publish audited financial statements.

“If David (Smith) does pay out everybody what he should rightfully pay them, then there will be a huge sigh of relief right across Jamaica. He would be regarded as a hero and his reputation will be enhanced both professionally and personally. If he does not, he will be stigmatised as a charlatan and rendered a pariah. His fate lies in his own hands. His word, dare I say it, has to be his bond.”

By June 18th, the full impact of the fallout begins to seep out with the announcement by Realtors that Fallout in ‘investment schemes’ impacting housing demand. Realtors expect slower growth in the housing market in 2008, with the fallout of get-rich schemes, high oil and commodity prices. Cash Plus, Olint and Worldwise, the three popular get-rich schemes, have suspended payments to its members since early this year. With the fallout, Valerie Levy expects housing demand to slide by about 10 per cent. “This as potential homeowners no longer have the cash flow and cannot qualify for mortgages,” said Levy who heads Valerie Levy and Associates. She added that if the schemes are to reorganise, then it will again fuel the market. Prices are expected to fall but rather rise as supply continues to lag behind demand. Real estate experts say a portion of new mortgages would have come from the get-rich schemes encasements.

The local currently is not immune to all this and so the Jamaican dollar gathers downhill momentum. The Jamaican dollar brakes through the $72 mark and continues to slide, notwithstanding strong interventions and an interest-rate hike by the central bank. The currency closed on the spot market at $72.19 against the US dollar, a new record low, having hit $72.06 following a more than six cent decline. The Bank of Jamaica, signalling a positive outlook, said that the most recent movement in the exchange rate is related to payments due to overseas creditors. “This occurred at a time when local banks and other financial institutions have been reducing their exposure to credit lines offered by correspondent banks and investment houses,” said the central bank.

In mid July, one of the much talked about Cash Plus acquisitions is back with the owners who are eager to offload the loss maker. Mainland puts flagship store on the market. Jeffrey Myrie, one of the owners of Mainland International Limited, is looking for buyers for the Hardware Company’s ‘Super Home Centre’ store which sits on the periphery of Spanish Town in St Catherine. Mainland wants at least US$6 million for the property that it spent more than US$14 million building six years ago. The 87,000-square-foot store sits on 4.079 acres of land. “It’s a store that was not profitable,” said Myrie. Myrie’s insistence that Mainland would continue operating as a going concern follows a failed attempt to sell the hardware outfit to Cash Plus Limited, a company now in receivership.

Despite all the warnings and signs of grave and immediate danger there are those who see Few dangers from Olint’s slide. With no precise figure available for the funds, Olint and its various subsidiaries have under management; analyst says it is hard to predict the full impact of the corralling of the foreign exchange trader’s assets on the local economy. But there appears to be a fair bit of consensus that the immediate effect would be consumer spending, in much the same as the Cash Plus effect. Olint, considered the forerunner of the unregulated investment schemes, is as secretive about its dealings as the other 40 or so operations that regulators have detected over time. But ‘guestimates’ have centred on US$600 million (J$43 billion) of principal, and possibly US$2 billion (J$144 billion) when interest payables are added to the mix. Jamaican think tank, CaPRI, which estimated the total amount of invested funds in the schemes at J$100 billion to J$200 billion, said Wednesday that it had no individual breakout of the figures.

The media attention quickly shifts from Carlos Hill to David Smith as the Olint boss readies team for legal showdown. A high-calibre team of Jamaican and international lawyers flew to the Turks and Caicos Islands to assist Olint Corporation Ltd boss, David Smith, in preparing for a looming legal battle.

Meanwhile, in Providenciales, Turks and Caicos, few people in the British territory know the investment club or Smith. In fact, a commission of inquiry ordered by the British government into alleged government corruption in the islands is the biggest news here. Smith’s house and his offices were raided by members of the Royal Turks and Caicos Islands Police Force, who seized documents and computers. But Detective Assistant Superintendent Mark Knighton, who led the operation, said his team from the Financial Crime Unit has found nothing incriminating to date. “Our next move is to examine the contents of these documents and see what they reveal,” Knighton said. “I would say that this investigation will take months, rather than weeks because, to my knowledge, this is just a small number of the documents.”

Finally, the reality of what is about to come and for many already here is upon us. The billion dollar question now is What happened to all that money? Club members of popular foreign currency trading outfit Olint and indeed most of the country are preoccupied with two questions: Will people be able to recover their invested funds and what happened to all that money? The answer to both those questions resides with Olint’s main principal, David Smith.

Olint was expected to make a significant payout, a deadline that came and went, with no good news for its club members, many of whom have not received a payment since the beginning of the year. Earlier that month, Smith, speaking to journalist Cliff Hughes, said that Jamaicans should pray for Olint and keep their fingers crossed that the money arrives in Jamaica. Alas, divine intervention did not materialise. Many club members expressed concern, and by Monday of that week, a foreboding picture was painted when its Braemar Avenue office was closed and an e-mail was released to all club members, part of which read: “It is with some regret that we advise, that as a result of threats to staff members, including a bomb threat within the last few days which is being taken seriously, the Club Member Care Office will be closed to the public as of Monday, July 14, 2008. Efforts are being made to address the matter and we will advise you further.”

Dennis Chung staring in his crystal ball sees the future and predicts A perfect economic storm. The next six to nine months he says will be one of the most challenging periods in the economic history of independent Jamaica. “And I say independent Jamaica merely because I am not aware of what the economic circumstances were before. In fact, what is brewing, I would call a perfect economic storm. I say this not just because bad management of the economy over the years is finally coming home to roost, but also because the vicious global environment will play havoc on vulnerable economies such as ours. The reason for our vulnerability is because we have allowed ourselves to be destroyed by the demons of consumerism, corruption, crime, and politics rather than economic decisions. In fact, the infrastructure that would make our economy able to weather the current global shocks does not exist, because we have failed to educate our people and insist on productivity.”

To provide some clarity to what is happening, the BUSINESSUITE Magazine publishes a feature entitled What Exactly is a Ponzi scheme? A Ponzi scheme is a fraudulent investment operation that involves promising or paying abnormally high returns (“profits”) to investors out of the money paid in by subsequent investors, rather than from net revenues generated by any real business. It is named after Charles Ponzi. A Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The high returns that a Ponzi scheme advertises (and pays) require an ever-increasing flow of money from investors in order to keep the scheme going.

The system is doomed to collapse because there are little or no underlying earnings from the money received by the promoter. However, the scheme is often interrupted by legal authorities before it collapses, because a Ponzi scheme is suspected and/or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases.

In August members of the financial sector begin to brace for what must now come. NCB leads the way and is positioning for investment schemes fallout. National Commercial Bank of Jamaica’s (NCB) move to increase its provision for credit losses by 140 per cent over the 12 months to June 30 have led some investors to believe the commercial bank is preparing itself for the potential impact of the fall-out of investment schemes. “It would be prudent [to increase the provision] in order to make sure there are no surprises,” said Neilson Rose equity asset manager at Mayberry Investments. “You are definitely going to see some fallout and these alternative investment schemes were used as cash flow.” The provision jumped from $39.1 million to $93.1 million when the June quarter is compared year over year. Year to date that figure increased 102 per cent from $151.3 million to $307 million. NCB increased this provision even though there was a decrease in its non-performing loans as a percentage of total loans-dropping to 2.34 per cent from 2.92 per cent over 12 months.

Some are already impacted as VMBS announces that Unregulated schemes hurt them in ’07. With its deposit portfolio remaining flat last year, Jamaica’s second largest mortgage bank, Victoria Mutual Building Society (VMBS), says that its ability to attract savings was weakened by the raft of unregulated schemes that offered super returns to investors. The explanation for the weak performance in this segment of the society’s business was outlined in its recently released annual report and underlined by the bank’s chairman Roy Hutchinson and CEO Richard Powell when they addressed members at the annual general meeting.

In September, it gets worse as Bad debts grow and Gov’t continue to gauge effect of fall-out. Analysts aren’t able to peg how much the fall out of ‘get-rich schemes’ has fed into the alarming increase in the number of Jamaicans that are not servicing their loans and mortgages. What’s clear, however, is that the pace at which bad debts held by domestic financial institutions have grown over the last year is the highest it has been since the 1990s financial crisis.

Bank of Jamaica (BOJ) data released, showed that up to June 2008, $7.4 billion in non-performing loans (NPL) – loans in arrears for three months and over – was in the system, an amount equal to the capital budget for education and agriculture combined. It’s up 41 per cent over last year, even as loans grew by half that amount. “This may not be the peak of it,” said financial analyst John Jackson, who closely follows publicly listed companies. “It is something that has to be watched carefully.”
Entering the last quarter of the year Jamaican remittances weather downturn, for now – Cocking cites family loyalty. The Inter-American Development Bank warned that the pace at which remittances once flowed will slow down even more than it originally projected, due to the erosion of the dollar’s value, a spike in inflation and the financial meltdown in the United States.
But at least two remittance companies in Jamaica say for now money transfers from the United States are still strong despite the financial crisis there. “We have not seen any fallout at all, none. It is same as usual,” said Andrew Cocking, deputy group president and head of international business at the Capital and Credit Financial Group, whose money transfer operation is handled by subsidiary Capital and Credit Remittance Limited.

The banking community begins to officially speak out led by a prominent Banker who ties fallout of ‘get rich’ schemes to rising loan delinquency. While there is no empirical data to highlight the number of borrowers that have been directly compromised from the fallout in the alternative investment schemes, a sharp spike in the amount of delinquencies on loans in recent months has raised a few eyebrows in the commercial banking sector.

Scotiabank President and CEO Bill Clarke, at a Financial Services Commission investment luncheon said that there are indications that a lot of persons were affected by the collapse in the high-return “get-rich” schemes, and he suspects that an increase in the number of persons who are unable to service their loans with his institution may be related to the fallout. “In our retail banking business, we have found that over the last couple of months that there has been an escalation in delinquencies,” said Clarke. “But when we enquire as to why arrangements are not being made as originally agreed, the answer that we have been getting is ‘our revenue stream is so much impaired’.”

October and attention is shifted away from the failed investment schemes to the Global financial meltdown. Prime Minister Bruce Golding admits that the global financial crisis will affect some of Jamaica’s critical economic structures, despite Finance Minister Shaw’s earlier claims that the country would face minimal impact. However, he is steering away from instigating panic.

Finally, the reality begins to sink in and a Crisis team is put in place. Giving the clearest indication yet that Jamaica is facing fallouts from the financial crisis that has gone global, the Government is putting together a top-level team to monitor the domestic financial system, and take action as needed to steady the markets here. “There is a lot of work being done in terms of managing the crisis in Jamaica,” said Don Wehby, minister without portfolio in the Ministry of Finance and the Public Service. “We had a long meeting with all the stakeholders to determine how we are going to approach this crisis,” he said, “because it is a crisis that calls for leadership.”

Alternative investment schemes and their impact on the economy are missing from the headlines, taken over by the global economic crisis.
In late November the headline is that Latibeaudiere avoids ‘R’ word. The Bank of Jamaica said that output was likely to be flat in the December quarter, but Central Bank Governor Derick Latibeaudiere steadfastly avoided the word recession even though the economy contracted 0.3 per cent during the nine months between January to September. A recession is classically defined as two consecutive quarters of negative growth.

Confession comes in early December when is announced that Jamaica has been in a recession since the start of ’08. The Jamaican economy has been in a recession since March of this year according to official data published by the Statistical Institute of Jamaica (Statin). The data showed that realhttp://businessuite.blogspot.com/ gross domestic product (GDP) by quarter has declined year over year since the December 2007 quarter. Statin, which revised its GDP data to rebase its numbers from 1996 to 2003 and which began using, this year, the value-added approach to calculate economic activity, reported a 0.4 per cent decline in value-added during the December quarter of 2007 when compared to the corresponding quarter in 2006.

The year has closed and the alternative investment schemes, their principals, investors and the overall impact on the economy are no longer it would appear current and newsworthy.

Additional sources: Daily Observer, Daily Gleaner, and Internet sources

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Businessuite News24

Corporate Movements -December 2024

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2 days ago

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December 20, 2024

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Caribbean Assurance Brokers Limited advises of the resignation of Ms. Renee Edwards, Chief Financial Officer (CFO), effective December 12, 2024. Ms. Sheba Grant, the Chief Accountant, will now oversee the company’s financial operations.

Wigton Energy Limited (“WIG”) has advised that Dr. Wayne McKenzie, OD has been appointed an independent, non-executive Director on WIG’s Board of Directors effective December 16, 2024.

The Board of Directors of Seprod Limited is pleased to announce the appointment of Mr. A. Mark Hart to the Board effective November 27, 2024. Mr. Hart is the founder of Caribbean Producers (Jamaica) Limited and has served in the roles of Chief Executive Officer and Executive Chairman.

NCB Financial Group Limited (NCBFG) is pleased to announce that Mr Richard Look Kin will be appointed as Head of Group Risk Management for NCBFG and National Commercial Bank Jamaica Limited (NCBJ), effective December 4, 2024. Mr Look Kin replaces Ms Allison Wynter, Group Chief Risk Officer – NCBFG and Chief Risk Officer – NCBJ. Ms Wynter will continue to provide support through a transition period. Mr Look Kin has over two decades of experience in the financial services sector across the Caribbean including enterprise risk management, investment management and corporate and investment banking.

Dave Morrison has been appointed CEO of Advantage General Insurance Company Limited (AGIC). This became effective on December 1, 2024.
President & CEO of Sagicor Group Jamaica Limited and Chairman of AGIC, Christopher Zacca, says Mr. Morrison “comes with a keen vision to build on the strong legacy Advantage General has established over the years.

Scotia Group Jamaica Limited was recently assessed by the Bank of Jamaica and was awarded a license to operate, as a Financial Holding Company effective July 24, 2024;
Appointments:

➢ Anya Schnoor, Chair Scotia Group Jamaica Limited has been appointed to a new role, Executive Vice President, Global Insurance effective November 1, 2024. With this appointment Anya will provide strategic direction and oversight responsibilities to the Insurance Business within International Banking.

➢ Perrin Gayle, SVP Retail & Small Business has been appointed Acting Head of Retail Banking, Caribbean and Central America (CCA) effective November 1, 2024. With this expanded mandate Perrin will manage the execution of regional segment strategies and design in local markets with focus on client experience. He will also have oversight of the local market product platforms and digital performance, including overall accountability for performance measurement and salesforce compensation.

➢ Sabrina Cooper, SVP Wealth Management and CEO Scotia Investments Jamaica Limited has been appointed Regional Director, Brokerage, CCA, effective September 2, 2024. With this expanded role Sabrina will continue to lead the Wealth business in Jamaica and oversee accountability for offshore brokerage implementation within the Caribbean & Central America

➢ Debra Lopez-Spence, President Scotia Jamaica Life Insurance Company Limited has been appointed Regional Head Insurance, North & Central Region effective November 25, 2024. With this expanded mandate, Debra will also be responsible for providing strategic direction, leadership and oversight for the growth and profitability of the wider Caribbean Insurance business to support the strategic goals of Scotiabank’s Global Insurance business. Specifically, Debra will now oversee the markets within Caribbean North and Central, which includes Jamaica, Cayman, Turks & Caicos and Bahamas.

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Businessuite News24

Accelerating Digital Payments and Jamaica’s Push Toward a Cashless Future

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December 20, 2024

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“Debit and credit cards are the preferred digital payment method in Jamaica, with over 34 per cent of those surveyed using them for in-store purchases, and 57 per cent for online purchases. Digital wallets follow (particularly bank wallets) with 15 per cent of Jamaicans preferring to use digital wallets to pay in-store, and 23 per cent to pay online, indicating a clear advance in financial digitalisation and the adoption of new digital payment methods,” Mastercard said in its report on the findings.”

Jamaica is at a pivotal moment in its financial evolution. With debit and credit cards now the preferred methods for both in-store (34%) and online (57%) payments, the country is experiencing a remarkable shift towards digital payment solutions. Mastercard, one of the global leaders in digital payments, highlights this trend, noting a clear advance in financial digitalization, with a growing number of Jamaicans using digital wallets (bank wallets, in particular) for online and in-store transactions. The digital payment landscape is rapidly evolving, and businesses, banks, and fintech players are all pushing to further speed up this digital transformation across the island’s payment ecosystem.

As cash continues to dominate locally, recent reports show that debit cards, digital wallets, and online payment platforms are gaining significant traction. For example, 15% of Jamaicans use digital wallets for in-store purchases, with 23% utilizing them for online payments. Mastercard’s commitment to driving this transformation is evident, as the company seeks to bring more solutions to the Jamaican market, further reducing the reliance on cash and accelerating the transition to a cashless society.

A Brief History: Visa and Mastercard’s Influence in Jamaica

Both Visa and Mastercard have been integral to Jamaica’s digital payment ecosystem for decades, providing secure, reliable payment infrastructure to banks, businesses, and consumers. These payment giants played a critical role in introducing card payments to the country, and they continue to drive innovation by introducing new technologies, such as contactless payments, mobile wallets, and digital tokenization.

Visa and Mastercard have been investing heavily in Jamaica’s digital transformation, facilitating the adoption of more modern payment solutions through partnerships with local banks, government agencies, and fintech companies. Mastercard’s recent push to accelerate digital payments in Jamaica is part of a broader regional effort to modernize payments across the Caribbean. As the adoption of digital payment solutions increases, Visa and Mastercard’s continued leadership in the sector will be essential in shaping the future of Jamaica’s payment ecosystem.

The global payment networks benefit from their vast experience in building secure, scalable infrastructure for digital payments. They bring credibility to the digital wallet movement and offer robust fraud protection and global reach, factors crucial to the success of any new entrant in the market.

The Benefits of Digital Transformation for Jamaica’s Payment Ecosystem

The benefits of digital transformation for Jamaica’s payment ecosystem are far-reaching and could have profound implications for the country’s economy, businesses, and consumers:

  1. Financial Inclusion: Digital payments offer an opportunity for greater financial inclusion, allowing unbanked or underbanked Jamaicans to participate in the formal financial system. Through mobile wallets and digital payment systems, individuals who lack access to traditional banking services can store money, make payments, and transfer funds with ease.
  2. Improved Efficiency and Convenience: The digital transformation of Jamaica’s payment ecosystem will streamline transactions, reducing the need for cash handling, lowering transaction costs, and accelerating payment processes. For businesses, digital payments offer quicker, more secure ways to accept payments, leading to faster turnover and improved cash flow.
  3. Boosting E-commerce: The rise of digital wallets and other digital payment systems enables greater participation in the e-commerce space. Consumers are increasingly shopping online, and businesses need to adapt by offering seamless and secure payment solutions. Digital wallets, in particular, make online shopping more convenient by storing payment information and offering one-click transactions.
  4. Transparency and Security: With cashless payments, businesses and consumers benefit from greater transparency and traceability in financial transactions. Digital payment methods also reduce the risks associated with physical cash, such as theft or loss, and provide stronger fraud protection through encryption and tokenization.
  5. Economic Growth: The widespread adoption of digital payments is a key driver of economic growth. A more efficient payment system facilitates cross-border transactions, encourages trade, and opens new business opportunities for small and medium-sized enterprises (SMEs).

Rising Competitors: The New Entrants in Jamaica’s Digital Wallet Space

While Visa and Mastercard continue to dominate, local players are emerging as key competitors in the digital wallet space. Financial institutions like NCB Financial Group, ScotiaBank, and CIBC are accelerating their own digital transformation, launching their own digital wallets and payment solutions.

 

  1. NCB Financial Group: National Commercial Bank (NCB) is at the forefront of Jamaica’s digital wallet revolution. Through its NCB Digital Banking platform, the bank has launched its own mobile wallet, offering customers the ability to pay bills, transfer money, and purchase goods and services via mobile phones. NCB’s extensive customer base and widespread banking network position it as a formidable player in the digital wallet market.
  2. ScotiaBank Group Jamaica: ScotiaBank has also embraced the shift toward digital payments with its Scotia ePay platform, which allows customers to send money, pay bills, and shop online securely. The bank has been actively promoting its mobile payment solutions and integrating them with its banking services to create a seamless user experience. As an established financial institution, ScotiaBank has the credibility and infrastructure to compete with the likes of Visa and Mastercard in the digital wallet space.
  3. CIBC Caribbean Bank : CIBC has entered the Jamaican market with its CIBC  banking services and has quickly adapted to the digital payment wave. Its mobile payment offerings focus on providing a range of digital services, including bill payments, transfers, and online shopping capabilities. CIBC’s global presence and strong financial backing give it an edge in competing for market share in the digital wallet and payment solutions sector.

How New Entrants Could Effectively Compete in Jamaica’s Payment Ecosystem

As the digital wallet market grows in Jamaica, new entrants will need to leverage several strategies to effectively compete with Visa, Mastercard, and each other:

  1. User-Centric Features: The success of digital wallets hinges on ease of use and customer adoption. New entrants should focus on offering user-friendly interfaces, seamless integrations with local merchants, and unique features like loyalty programs, rewards, and discounts to attract consumers.
  2. Partnerships with Merchants: To build widespread acceptance, digital wallets must integrate with a broad range of merchants, both online and in-store. Collaborations with retailers, restaurants, and other businesses will be essential for driving adoption. Offering incentives for merchants to adopt digital payments could spur more widespread use.
  3. Local Innovation: New entrants must understand the unique needs of the Jamaican market and tailor their solutions accordingly. Whether it’s offering micro-loans, facilitating remittances, or providing more accessible payment options for underserved populations, a localized approach will be crucial for success.
  4. Security and Trust: With financial transactions, security is paramount. Digital wallets must ensure that they offer top-tier encryption, fraud protection, and data privacy standards. Educating customers about the security features of their platforms will help build trust and drive adoption.
  5. Competitive Pricing: New entrants can attract users by offering competitive transaction fees and lower costs compared to traditional banking services. Offering incentives for digital wallet adoption, such as reduced fees for initial users or cash-back promotions, will be an effective way to drive early-stage adoption.

The Future: A Cashless Jamaica?

As more players enter the digital payments market and Jamaicans continue to embrace electronic transactions, the country’s payment ecosystem will become increasingly cashless. The competition among Visa, Mastercard, and local players like NCB, ScotiaBank, and CIBC will accelerate innovation, improve services, and drive further financial inclusion.

The government, too, has an important role to play in encouraging this transformation. Policies that support digital financial literacy, protect consumers, and promote secure digital infrastructure will be essential in ensuring the success of Jamaica’s digital transformation agenda.

In the coming years, Jamaica’s payment landscape will undoubtedly be shaped by the rise of digital wallets, making cash less and less relevant. For consumers, this shift offers convenience, security, and expanded financial opportunities. For businesses, it creates efficiencies and new growth avenues. And for the economy, it promises a more inclusive, secure, and modern financial ecosystem.

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Businessuite Markets

The Big Picture: Rewriting the Cinema Experience for Survival and Growth

Despite challenges, there is optimism. Palace Amusement anticipates a stronger 2025, with a more robust lineup of films and continued financial stabilization through debt reduction strategies. Globally, the National Association of Theatre Owners projects a rebound for cinemas, particularly with the release of delayed blockbusters​.

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December 13, 2024

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The cinema industry is grappling with an existential crisis. Globally, theatres are losing audiences to the allure of on-demand streaming platforms such as Netflix, Amazon Prime, and Disney+. These platforms, now competing directly with Hollywood studios, offer high-quality films featuring A-list talent, making it harder for traditional cinemas to sustain attendance.

Locally, Jamaica’s Palace Amusement Company exemplifies this struggle, recently reporting a one-third dip in attendance and significant losses. Yet, despite the dire headlines, opportunities for reinvention abound.

The Local Scene: Palace Amusement’s Struggles and Innovations

Palace Amusement faces the dual challenge of a global content drought and shifting viewer habits. The lingering impacts of Hollywood’s Screen Actors Guild and Writers Guild strikes exacerbated the situation, delaying blockbusters and leaving theatres to depend on weaker releases. Hits like Barbie and Mission: Impossible 7 in 2023 were followed by a lackluster 2024 lineup, with films like Joker 2 underperforming globally. As a result, Palace recorded a 33% decline in attendance during the first quarter of 2024, leading to a 20% revenue drop​.

To combat these challenges, Palace has taken steps such as introducing 4DX technology at its flagship Carib 5 cinema. This multi-sensory format—incorporating seat movements, water splashes, and other effects—has proven popular, driving higher occupancy rates for certain screenings. However, such innovations alone are not sufficient.

The Global Shift: Lessons from International Players

Around the world, cinema operators are diversifying their offerings and finding creative ways to fill theatre seats:

Alternative Content: Cinemas in Europe and the United States are increasingly showing live events such as concerts, sports matches, and theatrical performances. For example, AMC Theatres in the U.S. streams live concerts and offers gaming nights, turning theatres into multi-purpose venues.

Premium Experiences: Operators like Cineworld have shifted to offering luxurious seating, gourmet food options, and private screening packages, creating an upscale experience that streaming cannot replicate.

Local Content and Festivals: In countries like India and South Korea, cinemas rely on vibrant local film industries to draw audiences. By promoting Jamaican and Caribbean films through local festivals, Palace could engage regional audiences while reducing dependence on Hollywood.

Subscription Models: Subscription services like AMC Stubs A-List and Regal Unlimited allow audiences to see multiple films for a flat monthly fee, boosting attendance and stabilizing revenues.

Digital Engagement: Many cinemas now use robust loyalty apps, personalized recommendations, and gamification strategies to connect with patrons. Palace could enhance its app to drive engagement, offering discounts, virtual rewards, and early ticket access.
Strategies for Palace Amusement

Given the shifting landscape, Palace Amusement could adopt the following strategies to revitalize its business:

1. Diversify Offerings Beyond Films

Transform cinemas into multi-use entertainment hubs. Hosting live events, comedy shows, and esports tournaments can broaden audience appeal.

2. Expand Local Content Investment

Collaborating with Jamaican and Caribbean filmmakers to produce original content would not only support the local creative economy but also attract culturally invested audiences.

3. Enhance the Viewing Experience

Expand 4DX technology to additional locations while exploring other immersive technologies like VR cinema experiences.

4. Build Community Engagement

Cinemas can serve as cultural spaces, hosting film clubs, Q&A sessions with filmmakers, and themed events tied to movie releases.

5. Adopt Flexible Pricing

Dynamic pricing strategies—lower ticket prices during off-peak hours and premium pricing for blockbusters or special events—can maximize revenue.

6. Strengthen Online Presence

Leveraging social media and digital marketing to highlight new experiences and engage with younger audiences is critical. Integrating streaming partnerships, such as limited online releases of local films, could also diversify revenue streams.

The Path Forward: A Reinvented Cinema Experience

Despite challenges, there is optimism. Palace Amusement anticipates a stronger 2025, with a more robust lineup of films and continued financial stabilization through debt reduction strategies. Globally, the National Association of Theatre Owners projects a rebound for cinemas, particularly with the release of delayed blockbusters​.

To secure its place in a rapidly evolving industry, Palace must embrace innovation, diversify revenue streams, and reimagine the cinema as more than a place to watch films. It must become a hub for experiences that unite communities, celebrate culture, and deliver entertainment that streaming cannot replicate.

In the end, the future of cinemas lies not in resisting change but in embracing it—and leading audiences back to the magic of the big screen.

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Businessuite News24

JUTA Express Launches December 15th: Non-Stop Comfort, Convenience, and Courier Services

JUTA Express is designed with modern convenience in mind. All bookings and payments are processed through the InterMetroONE Customer App, available for download on both Google Play and the Apple App Store. Limited in-person bookings will be accommodated at the JUTA Kingston Office; however, the service is primarily cashless, accepting only credit and debit cards.

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3 weeks ago

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December 1, 2024

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Jamaica’s trusted name in transportation, JUTA, is proud to announce the launch of JUTA Express, beginning service on December 15th, 2024. Offering a premium, non-stop travel experience, JUTA Express is set to revolutionize intercity transportation and same-day courier services in Jamaica.

Your Non-Stop Ride to Convenience
With four daily departures from Kingston, Sangster International Airport, and Mandeville, passengers can count on timely, uninterrupted service. Departure times are 6:00 AM, 8:00 AM, 4:00 PM, and 6:00 PM, ensuring flexibility and convenience.

JUTA Express guarantees the same renowned level of customer service and comfort that passengers have come to trust from JUTA over the years.

Same-Day Courier Service
In addition to passenger services, JUTA Express will offer courier services on all routes. With same-day pickup and delivery, customers can rely on swift and secure transportation of packages. Please note, no overnight storage is available. Unclaimed packages will incur heavy overnight fees, making same-day collection a must.

Book Easily with the InterMetroONE App
JUTA Express is designed with modern convenience in mind. All bookings and payments are processed through the InterMetroONE Customer App, available for download on both Google Play and the Apple App Store. Limited in-person bookings will be accommodated at the JUTA Kingston Office; however, the service is primarily cashless, accepting only credit and debit cards.

Looking Ahead to 2025
To meet the anticipated demand, JUTA Express will expand its routes in 2025, connecting even more of Jamaica’s key destinations.

Download the App Today and Book Your Seat!
Be among the first to experience the next generation of intercity travel and courier services with JUTA Express. Download the InterMetroONE Customer App today, secure your seat, and travel in comfort, safety, and style.

For more information, contact:
JUTA Express Customer Service
4 Lady Musgrave Road Kingston
jutaexpressone@gmail.com
Phone: (876) 927-4536

About JUTA
JUTA (Jamaica Union of Travellers Association) is Jamaica’s leading transportation provider, known for its unparalleled commitment to safety, reliability, and exceptional customer service.

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Businessuite News24

Transforming Vision Statements: Choosing the Right Vision for the Right Time

It’s not that you lack vision yourself—after all, your success is built on envisioning possibilities and pursuing them. But translating that personal energy into an organizational vision that resonates with others is a different challenge altogether. Should you simply rewrite the vision statement, or is there a better way to achieve meaningful impact?

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3 weeks ago

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November 29, 2024

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As a leader, you recognize the importance of inspiring your team with a compelling vision. Yet, you may find that your company’s vision statement, despite its lofty aspirations, fails to inspire meaningful change. How can you craft and communicate a future that genuinely motivates your team to take action?

The Challenge of an Inherited Vision Statement

Imagine you’re a newly promoted CEO. Among the many responsibilities you’ve inherited is a vision statement. While it might look passable on paper, it has yet to inspire you, let alone your team, to embrace new behaviors or think differently.

It’s not that you lack vision yourself—after all, your success is built on envisioning possibilities and pursuing them. But translating that personal energy into an organizational vision that resonates with others is a different challenge altogether. Should you simply rewrite the vision statement, or is there a better way to achieve meaningful impact?

Here’s a fresh approach to this age-old leadership dilemma.

Understanding How Vision Truly Works

A powerful vision fundamentally transforms how we experience the present. Think about the difference between a Friday afternoon in the office and a Sunday afternoon. The former often feels better—not because of the immediate circumstances but because of our anticipation of the weekend. This sense of future anticipation changes how we perceive the present moment.

That’s the kind of shift you want to inspire in your stakeholders. You want them to feel energized by the future you’re describing, just as you are. The hallmark of success is when individuals take initiative, make sacrifices, and go beyond their job descriptions—not because they’re told to, but because they’re inspired to.

But here’s the hard truth: a traditional vision statement alone cannot deliver this kind of transformative impact.

Rethinking Vision: Introducing the Three Levels

Most organizations begin with what can be termed a “Level 1 Vision”: a concise, polished statement, often a few sentences or paragraphs, that attempts to summarize the future. However, these statements are frequently vague, generic, and uninspiring. They might sound nice but leave people either indifferent or skeptical. Some may even feel the statement describes what the organization has already achieved, rendering it irrelevant.

A better approach is to think of the Level 1 Vision as just the “headline” of a more detailed vision framework. Here’s how to expand it.

Building a Level 2 Vision

To create a meaningful vision at this level, gather your leadership team for an offsite retreat and focus on a specific long-term horizon—typically 15 to 30 years in the future. Work together to describe a vivid picture of what success looks like at that time. This Level 2 Vision goes beyond a brief statement; it provides several pages of detail, potentially including visuals, videos, or other media to bring the future to life.

The key here is collaboration. By involving your leadership team, you not only create a shared sense of ownership but also tap into a wider pool of creativity and ambition. A well-crafted Level 2 Vision should reflect the aspirations of your entire C-suite, energizing everyone involved.

However, many organizations stop at this stage. While the Level 2 Vision is more compelling than a simple statement, it often becomes an overwhelming list of aspirations. Without prioritization (and reduction), it risks becoming unrealistic, leading to cynicism rather than inspiration. Some employees may even dismiss it as “the CEO’s wish list.”

To avoid this pitfall, you must take the next step.

Evolving to a Level 3 Vision

The “Level 3 Vision” transforms lofty aspirations into a credible, actionable plan. This involves narrowing down the vision to a focused set of achievable targets supported by a strategic roadmap.

This process requires tough conversations. Your leadership team will need to negotiate priorities, confront trade-offs, and align on a clear path forward. Engaging a skilled facilitator can help ensure these discussions are productive and lead to consensus.

The outcome is a vision that stands apart from your competitors. A Level 3 Vision includes:

– Specific, measurable results: Clearly defined goals with tangible metrics.

– Milestones: Key achievements along the journey to the ultimate vision.

– A strategic pathway: A roadmap showing how to get from the present to the desired future.

– Team alignment: Full buy-in from your leadership team, ensuring commitment to execution.

With this, your vision evolves from an abstract dream into a realistic plan that inspires action.

Communicating Across the Three Levels

Once your Level 3 Vision is established, it’s crucial to communicate it effectively. Each level of vision—Level 1, Level 2, and Level 3—has a role to play depending on your audience and context.

For example, a Level 1 Vision offers a concise, memorable summary. Think of Vision 2030 Jamaica’s tagline: “…the place of choice to live, work, raise families and do business.” It’s short, evocative, and easy to recall.

A Level 2 Vision, on the other hand, provides more depth. Vision 2030 Jamaica expands on its tagline with four National Goals and 15 Outcomes, offering stakeholders a richer understanding of the country’s aspirations.

Finally, a Level 3 Vision delivers the detailed roadmap necessary to ensure credibility and guide execution.

By mastering these three levels, you can tailor your communication to inspire stakeholders while maintaining clarity and focus. Avoid the mistake of using the wrong level for the audience or situation, which can lead to confusion or disengagement.

Conclusion

Transforming vision statements into actionable, inspiring frameworks requires more than polished language. By embracing a three-level approach, you can align your team, inspire stakeholders, and chart a credible path to the future. Choose the right level of vision for the right moment, and you’ll not only communicate your aspirations—you’ll make them a reality.

Intrigued? Interested in more? Visit the JumpLeap Long-Term Strategy Podcast and Newsletter.

Francis Wade
Jump Long-Term Newsletter and Podcast
http://blog.fwconsulting.com, http://fwconsulting.com

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