RISING to the challenge of financial exclusion, Grace Kennedy Financial Group Limited (GKFG) has built a successful enterprise around serving the financially underserved. GKFG, the financial services division of the GraceKennedy Group, has grown over the years, providing a suite of services designed to empower those previously marginalised by the formal banking sector.

In an exclusive interview with the Jamaica Observer, GKFG’s first female CEO, Grace Burnett, proudly upholds the founding fathers’ vision of the company, which has successfully included over a million individuals who would have otherwise been excluded from the banking sector.

“GK Financial Group’s client base is predominantly comprised of lower-income households, and our focus is on ensuring they feel financially included,” she emphasised with pride.

GraceKennedy’s financial journey began in the 1990s, evolving through various name changes and culminating in the formation of GraceKennedy Financial Group (GKFG) in 2015. According to Burnett, the formation of GKFG aimed to consolidate the financial entities’ results and performance, enabling monitoring as a distinct entity within GraceKennedy. By forming a holding company, GraceKennedy aimed to bring these entities under a single umbrella, facilitating reporting and oversight by the Bank of Jamaica (BOJ) as required by the Banking Services Act.

However, merging the financial institutions into one entity was not without its challenges, as each entity had its own distinct culture and autonomous operating style, as described by Burnett: “Culture eats strategy for breakfast any day.” To address this, GK sought the expertise of an external partner to help integrate the financial group’s culture and create a unified identity. Through this collaboration, they successfully created a cohesive culture that the entire group could rally behind.

“We accomplished a significant amount of work in this area, and I believe we successfully created a unified culture that aligns with our current mantra of ‘one group, one goal.’ We are now all on the same page,” Burnett expressed.

GK Investments, later rebranded as GKFB, underwent a transformation, refining its offerings and expanding its services. Notably, GK’s remittance business, which dates back to 1990, was a significant milestone in its financial services journey. However, its first venture into financial services began with general insurance, which eventually became GK Insurance.

“As traders, you found the need for insurance. And so we started out as agents for insurance companies in the UK and elsewhere to facilitate the food business. So that’s how we kind of started in financial services,” she explained to the Business Observer.

In 1990, GK decided to sign and become a master agent with Western Union, which brought into play a whole new business now known as Money Services. That remittance business, over time, added the bill payment business, Bill Express, and the cambio business FX Trader. It recently added coin exchange, which is still unknown to many and collects coins on behalf of the BOJ.

During the same period, GK acquired Global Bank, marking its entry into commercial banking led by Don Wehby, before he became group CEO. This move led to the acquisition of Trafalgar Commercial Bank, which was later rebranded as First Global Bank. Subsequently, First Global Financial Services was sold, and GK Capital was formed a few years later, handling banking and investments. GK also holds an equity investment in Barbados-based Signia Financial, partnered with Cape Shepherd. GKFG’s suite of financial services includes insurance, with the largest commercial broker in Jamaica, Allied Insurance, and GK General. More recently, Key Insurance Company in St Lucia and GK Insurance Eastern Caribbean Limited were added, expanding life and health insurance services to 14 markets. Burnett explained that this diversification was deliberate, as the company recognised a concentration risk in money services.

“One of the things we would have recognised is that we have a concentration risk in money services. And you always, as a business, try to say, ‘Alright, suppose something goes wrong here. What happens?’” she asked rhetorically.

GK decided to invest in insurance, which now accounts for over 50 per cent of its revenue. While money services still dominate in terms of profitability, their share has decreased not because profits have declined but because insurance profits have grown significantly.

“We’re always asking ourselves how we can make the customer’s life easier,” said Burnett when asked about technology innovations over the years.

Starting with GKG online insurance, which allowed customers to create their own policies and decide how much to spend. Over the last three years, a substantial amount has been spent on digitisation, focusing on allowing customers to access services easily. With its own digital factory now, GK has been building out GKONE, a digital interface and ecosystem that allows customers to access every service under the GK umbrella. However, the main focus of the group’s success, according to Burnett, is its financial education focus and helping those who have been excluded from banking opportunities due to being financially challenged.

“We always look at how they [financially challenged] can gain the respect they clamour for,” Burnett shared. “They often feel disrespected by many of us. And in their journey towards respect, it’s about how we can help them along the way. So we believe that aspirations, big or small, are meant to be pursued.”

GraceKennedy’s financial inclusion efforts were exemplified by the 2022 launch of its prepaid Visa debit card, featuring Shelly-Ann Fraser-Pryce as its cover image. Initially designed to be funded by remittances without requiring a bank connection, the card can be loaded with funds at any Bill Express location and used for online and in-store shopping. Since its launch, 50,000 individuals have acquired the card, which is available for pickup in any parish and backed by Visa and First Global Bank, benefiting both parties. A key aspect of GraceKennedy’s 2030 plan is to achieve a high percentage of digital transactions and be listed on the Jamaica Stock Exchange.

“Financial services are built on trust, and if you want trust, there’s no better name than GraceKennedy. We are extremely proud of our heritage, and what we’re trying to do is leverage that, as I believe it’s what makes our customers trust us. They trust our food and financial services alike,” said Burnett.