Brenda Cuthbert, general manager of COK.
COK Cooperative Credit Union Limited is to become a distribution agent for Jamaica National Money Service (JNMS), but consummation of the deal struck between the two is pending approval of a remittance licence for COK by the central bank.
The partnership will allow JNMS to expand its distribution network, says Carmen Tipling, executive in charge of corporate communications within the JN group.
The combination of the three ABMs and five COK locations, as well as the money card, will make them the largest distributor (for JN), Tipling told Sunday Business.
The arrangement is expected to take effect month end if the Bank of Jamaica says yes to the COK licence.
While not giving a definite date when the partnership will take effect, Tipling said the institutions were waiting on regulatory approval from the Bank of Jamaica (BOJ) for COK to be local distribution agent on behalf of JN Money Services.
COK operates two branches in Kingston and one each in Portmore, Montego Bay and Manchester.
According to Tipling, the JN Money Service card will give the holder access to some 700 ATMs, and 10,000 point-of-sales outlets.
Brenda Cuthbert, general manager at COK, confirmed that her institution would be taking on business on behalf of JN but declined to comment on the arrangement.
But the deal is similar to one that JNMS struck with Mid-Island Investments Limited of Santa Cruz, St Elizabeth, which was contracted as an agent in June to service the money services remittance clients in that section of the island.
JNMS has similar arrangements with Barretts Cambio in Spanish Town and Access Cambio in May Pen.
Carmen Tipling, corporate communications head at JN group. - File photos
JN Money Services expansion is taking place at a time when there are warnings that remittances will slow down due to the financial crisis in the United States.
The Inter-American Develop-ment Bank warned that the pace at which remittances once flowed will slow down even more than originally projected, due to the erosion of the dollars value, a spike in inflation and the financial meltdown in the United States.
However, Emile Spence, general manager at JN Money Service, said two weeks ago, his company had not yet seen a downturn in inflows from that market. Other companies in the sector have given similar readings on the sector.