JN goes 'mobile' in savings, mortgage push
Published:Sunday | November 7, 2010 | 12:00 AM
Leading building society Jamaica National Building Society (JNBS) is zeroing in on improving its savings portfolio, even as it has paid greater attention to mortgage operations, with the setting up of four regional mortgage centres in New Kingston, Mandeville, Montego Bay, and Ocho Rios.
Marketing and sales executive with the company, Leon Mitchell, said by making these moves, JNBS was staying true to its mandate with the hope of maintaining and increasing business.
"As you know, JNBS is a mutual building society with core business in mortgage and savings," he said.
"We feel that the mortgage business will pick up as all elements come together for this to take place," Mitchell told Sunday Business.
Improve customer service
The JNBS executive declined to say what level of investment was being made to pump up both savings and mortgages.
He pointed out that the company accounted for 46 per cent of deposits as recorded by the Bank of Jamaica in June, and that current initiatives were targeted at bagging additional market share. Even a one per cent improvement in its position would "be great", Mitchell said.
By establishing the mortgage centres, the company expects that once the customer is dealt with in a timely manner, this will improve customer experience and service levels.
"We anticipate that sales will increase, [and] processing time should definitely improve," Mitchell said.
Among the new service features, Mitchell said that starting November 1, mobile-sales agents at JN's new locations would provide what he described as "hands-on" management of the loan-application process.
"Our objective is faster, better-quality service to respond to the mortgage needs of our members and clients," the marketing executive said in a company statement issued to the media.
"The key element in this is freeing our sales agents, and the new structure allows them greater flexibility to focus on helping clients to finance their real estate needs," it said.
Mortgage information will still be available from all JNBS locations.
The building society, Jamaica's largest private mortgage lender, has also put in place a referral system from all JN branches, to improve client services, the company said.
JN has seen growth in both deposits and mortgage loans in the past year, but at single-digit levels, according to the most recent central bank industry data to June 2010. Its mortgage portfolio increased by J$2.1 billion, or six per cent, to J$37.6 billion year on year; savings were up eight per cent, or J$4.9 billion to J$65.2 billion in the same period.
There is clamour in the markets for banks and other lenders to cut interest rates and, while issuers of credit have chosen to contract rates at a slow pace, some of the banks have made one to three-point adjustments.
Mitchell said JN had made no move to reduce rates charged for mortgages since the debt exchange in January. JN's mortgages are priced at around 13.75 per cent.
"I am a strong believer in the fact that the market will determine rates," he said.
While not disclosing the amount of money invested in the new centres, Mitchell said that the New Kingston location is the only new office facility. All other centres have been set up in buildings already occupied by JNBS.
"We are utilising existing staff to focus 100 per cent on mortgages," he said, noting that no new staff had been hired.
JNBS's loan-processing unit has also computerised and streamlined loan approvals to, Mitchell said, achieve speedier and more efficient decision making.