Seed gets BOJ approval
The Micheal Lee-Chin Jr start-up Seed Jamaica recently secured its long-awaited approval from the Bank of Jamaica (BOJ) to operate as a licensed microcredit institution.
Seed’s approval follows a number of other microfinancing institutions (MFIs) such as Courts Ready Cash which recently have been given the green light by the central bank to become legitimate players in the sector. Prior to the Microcredit Act, 2021, the sector is said to have been occupied by over 200 microlenders operating informally.
Pursuant to the passing of Act in 2021, MFIs must now by law become licensed and approved by the BOJ, which operates as the regulator.
Seed, which has been anticipating its own approval in order to deliver on a mandate of providing financial freedom to a large cross section of unbanked/under-banked or clients locally, said it was happy for the approved formalisation status, which give it more room to push services in the market.
“This is the culmination of many efforts and I want to thank the BOJ for working with us to bring this dream to fruition. This is only the first step in a vision that Seed has to offer credit to those in need. We are excited to plant seeds in hard-working people and communities and in turn help Jamaica to be the land we know it was destined to be,” said Lee-Chin in a company statement late last week.
Lee-Chin, the son of Jamaican-Canadian billionaire and chairman of the NCB Financial Group Michael Lee-Chin, is the founder and CEO of Seed and is assisted by an able team of experienced persons having knowledge in the financial, technological, marketing and communications fields.
Two of its members include co-founder and chief risk and intelligence officer, Adrian Dunkley and Andrew Patterson, respectively.
The company, which debuted with a giveaway campaign last year through which it moved to issue over $50,000 in grants to some eight lucky customers in different cycles, with its new designation is now more bullish on its plans for growth.
“Jamaica watch out, we are coming!” the statement said.
Contacted by the Jamaica Observer last Friday for more information about the plans going forward, a spokesperson said the directors, who have indicated that they are not yet ready to comment, were busy working out plans to start the disbursement of loans by July.
Dunkley, in speaking with this newspaper late last year, had said that following the approval, the company, which will first operate as a microcredit institution, is hoping to later transition into a full-fledge digital bank — offering a wide range of services, adding more options for banking while making channels to access credit for locals much easier.
“We are a fully digital lending agency, allowing customers to do everything from their devices and getting them access to funds as quickly as possible. We are set with capital and we have enough funds to manage all the operational requirements of the company,” Dunkley stated, at the time refusing to disclose the actual level of investment being pumped into the business.