JN Financial Group has officially sold a significant majority stake in its UK-based subsidiary, JN Bank UK, to Step One Money, a specialist lending platform headquartered in the United Kingdom. According to filings from Companies House, the transaction was finalized on October 11, 2024, but the sale price remains undisclosed.
The documents confirm that Step One Money now controls over 75% of the shares in JN Bank UK. Step One Money, co-owned by Michael Childress and Jameel Jesani, both British nationals, was established in June 2024, likely as a vehicle for this acquisition. Childress, a company director, and Jesani, a lawyer, also lead Step One Finance, which has carved a niche in consumer lending across the UK.
Launched in December 2019, JN Bank UK made history as the first Caribbean-owned entity to receive a banking license in the UK. It was intended to provide banking services that would mitigate reliance on UK-based banks for facilitating transactions between Jamaican customers and their counterparts in the UK. This move was largely driven by a series of de-risking actions taken by international banks, which were distancing themselves from Jamaican financial institutions due to heightened scrutiny of anti-money laundering measures, especially after Jamaica was placed on the Financial Action Task Force (FATF) grey list in 2020. However, with the country’s removal from the grey list in June 2024, the banking landscape has gradually stabilized.
Despite these improvements, the sale of JN Bank UK comes as JN Financial Group faces pressure from the Bank of Jamaica (BOJ) to boost its capital reserves. In a bid to meet the central bank’s strict capital adequacy requirements, JN Financial Group sought to divest risky assets, including JN Bank UK and JN General Insurance. BOJ had set JN Bank’s capital adequacy ratio at 15%, higher than the typical 10%, due to perceived risks associated with these assets.
The sale to Step One Money is part of a broader strategy by JN Financial Group to raise capital and ensure compliance with BOJ’s regulatory demands. As part of this move, JN Financial Group will also divest JN General Insurance to British Caribbean Insurance Company (BCIC), with the two transactions expected to bring in a combined total of $7 billion. Alongside other capital-raising measures, these efforts are anticipated to strengthen JN Financial Group’s net capital position by approximately $12.3 billion by the end of March 2025.
JN Bank UK, which had £350 million in assets as of March 2024, was initially established with an investment of £64 million by JN Financial Group. Over the years, it earned high praise from both customers and industry professionals, achieving an “excellent” rating on TrustPilot and receiving accolades from the British Bankers’ Association. However, with its new majority ownership, the bank is expected to undergo a rebranding under Step One Money’s stewardship, with the new name likely to be revealed next year.
The acquisition marks a significant shift for JN Bank UK, as it transitions into a new phase under the leadership of Step One Money, a move that could reshape its future role within both the Caribbean and UK financial landscapes.
