JN Financial Group has officially completed the sale of a significant share of its JN Bank UK subsidiary to Step One Money UK, according to records from Companies House in the UK. Although the financial details of the transaction remain undisclosed, the filing confirms that Step One Money UK now holds at least 75% ownership of JN Bank UK as of October 11, 2024.
Step One Money UK is co-owned by Michael Childress, a British company director, and Jameel Jesani, a lawyer. Both individuals have equal stakes in the company and serve as directors of Step One Finance, a UK-based consumer lending platform. The establishment of Step One Money UK earlier this year was likely intended to facilitate the acquisition of JN Bank UK.
The sale represents a pivotal moment for JN Bank UK, which was launched in December 2019 and became the first Caribbean-owned bank to receive a license from UK regulatory authorities. Initially created to provide banking services to Jamaican customers while mitigating reliance on UK banking institutions, JN Bank UK aimed to offer a secure alternative amidst a backdrop of tightening regulations in the financial sector.
Earl Jarrent, CEO of JN Group, had ambitious plans for JN Bank UK, intending to support Caribbean banks facing challenges due to reduced correspondent banking relationships. However, insiders suggest that the bank will undergo a rebranding following the acquisition, with the new owners expected to steer it in a different direction. JN Bank will retain a minority stake in the entity, although specific future plans have yet to be disclosed.
The impetus behind the sale was driven in part by pressure from the Bank of Jamaica, which has been advocating for local banks to strengthen their capital bases. Following the central bank’s evaluation, JN Bank was subject to elevated capital requirements of 15% to mitigate risks associated with certain assets, including its UK subsidiary.
Recent reports indicate that JN Financial Group has also initiated plans to divest its holdings in JN General Insurance, with both transactions poised to enhance the group’s overall capital position. Analysts project that these sales, combined with additional capital-raising efforts, could lead to an approximate $12.3 billion impact on net capital by early 2025.
Since its inception, JN Bank UK has received positive recognition, including an “excellent” rating on TrustPilot and accolades from the British Bankers’ Association. The future of JN Bank UK under the guidance of Step One Money UK remains to be seen, as stakeholders look forward to how the new ownership will navigate the evolving landscape of the UK banking sector.
