Access Financial Services Limited (AFS) has been given the green light from the Bank of Jamaica (BOJ) to operate as a microfinance institution. This license also ensures that Access Financial Services will operate under the Microcredit Act, 2021, and Microcredit (License Form of Application) Rules, 2021.
The Microcredit Act came into full effect in July last year, 2021, along with the Microcredit Rules. It replaced the Moneylending Act which previously handled the regulation for Micro Finance Institutions.
This is positive news for Access Financial Services because it will enable them to broaden the financial services they provide to clients. Now they can grant loans and provide business advisory services to individuals, micro, small and medium enterprises.
Institutions that apply for this license are under strict rules and guidelines. The governance structure of their operations must be adequately outlined to reduce confusion and possible ambiguity that often comes with corporate governance.
Executive chairman of Access Financial Services, Marcus James, told a Jamaica Observer reporter that he was pleased with the approval. It further solidifies their stance in the market and gives potential clients reassurance that they are in good hands. “It differentiates from the competition and it should inspire confidence in our clients that we are using best practices and guidelines of the BOJ.”, he said.
For the year ended March 31, 2022, AFS earned $1.98 billion in revenues or nine percent more than the $1.82 billion generated in 2021. From this, the company generated a consolidated net profit after tax of $438 million, which was 65 percent higher than the prior amount of $266 million.
