LASCO Financial Limited (LasFin), which is seeking to increase its participation in the cambio and remittance industries, indicates that it is willing to onboard agents from the Alliance Financial Limited (AFL network), following the suspension of these operations when AFL was suspended from operating these businesses in December 2021.

Success could mean an additional ten per cent of the market. The push for larger market share comes soon after the Bank of Jamaica (BOJ) disclosed remittances in 2021 were US$3.497 billion, a record compared to US$2.9 billion in inflows in 2020.

Remittance companies have been leading the increase, with higher inflows between January and December 2021.

LasFin, which offers remittances through Moneygram and Ria Express, is specifically targeting agents in several rural towns. Its proposal asks that agents interested must have a physical storefront and a business generating high cash flow.

The company’s Managing Director Jacinth Hall Tracey told the Jamaica Observer, “We are seeking to cover white spaces in the below underserved towns: Morant Bay, May Pen, Port Maria, Lionel Town, Bog Walk, Porus, Mandeville, Santa Cruz, Black River, Darliston, Bethel Town, Little London, Lluidas Vale, Kellits.”

Lasco Financial is engaged in the sale and purchase of foreign currencies through its cambio, being a licensed cambio dealer regulated by the BOJ; and also provides remittance services in accordance with licences issued by the BOJ.

LasFin owns Money Stores that offer a mix of retail financial services. Now the company is going after more white labelled space, which means that agents can offer remittance and cambio services under its supervision.

Hall-Tracey estimates Alliance’s previous market share at five to 10 per cent of total remittance and cambio services, adding that the LasFin is open to onboarding agents who have been left in the cold.

She stated, “We are open to onboarding these agents. Some are currently exploring a relationship with us while some have taken steps to initiate the process.”

Hall Tracey noted that typical applications for new agents can take between 90 days to six months for approval by the BOJ.

The company head said that, currently LasFin is the island’s 2nd largest cambio based on purchases.

The company, based on remittance inflows, is number two in the remittance market, with just under 20 per cent of remittance inflows.

For the last reported quarter, the second quarter ended September 30, 2021, LasFin reported revenues of $519.69 million compared to $614.61 million a year ago. Net income was $133.59 million compared to $30.15 million for the similar period in 2020.

The company has been trying to convert its clientele to receiving remittance payments to their accounts or on its electronic Lasco Pay card product.