In a significant move for the banking landscape, JN Financial Group has successfully concluded the sale of a substantial portion of its JN Bank UK subsidiary to Step One Money UK. While the sale price remains undisclosed, filings from the UK’s Companies House confirm that Step One Money UK has acquired control of “75 percent or more” of JN Bank UK as of October 11, 2024.
The driving force behind Step One Money UK is Michael Childress, a British national and company director, alongside his business partner, attorney Jameel Jesani. Both men hold equal stakes in Step One Money UK and are also directors of Step One Finance, a company specializing in consumer lending within the UK. Registered in June 2024, Step One Money UK appears to have been established specifically for this acquisition.
This sale marks a notable chapter in JN Bank UK’s journey, having made history just over four years ago as the first Caribbean-owned entity to secure a banking license from UK regulators. Launched in December 2019, JN Bank UK was designed to facilitate transactions between customers in Jamaica and the UK, particularly at a time when local banks were scaling back operations due to heightened regulatory scrutiny concerning money laundering risks. The establishment of JN Bank UK was a strategic response to these challenges, aimed at bolstering financial services for Caribbean entities facing barriers in accessing traditional banking channels.
As part of its vision for growth, Earl Jarrent, CEO of JN Group, initially expressed intentions to provide services to other Caribbean banks affected by severed correspondent banking relationships in the UK. However, with this recent change in ownership, the direction for JN Bank UK is set to shift. Sources familiar with the transaction indicate that a rebranding of the bank is anticipated for next year, although JN Bank will retain a minority stake in the newly structured entity.
The decision to divest was influenced by regulatory pressures from the Bank of Jamaica, which has been urging local deposit-taking institutions to bolster their capital reserves. JN Bank had already been facing higher capital adequacy requirements—set at 15 percent—following assessments that certain asset losses, including those from JN Bank UK, posed risks to its financial stability.
Recent disclosures by JN Financial Group reveal ongoing efforts to divest both JN Bank UK and JN General Insurance, with a projected collective impact of around $12.3 billion on net capital by March 2025. The group anticipates that the sale, along with additional capital-raising initiatives, will help secure a more robust financial footing.
Initially investing around £64 million to launch and support JN Bank UK, the subsidiary now boasts assets of approximately £350 million as of March 2024. Its performance has garnered positive feedback, earning an “excellent” rating on TrustPilot and recognition from the British Bankers’ Association for its service quality. With the new ownership structure, stakeholders and customers alike will be watching closely to see how JN Bank UK evolves in the competitive UK banking market.
