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table of contents
EDITORIAL - 3 Steps To Forming A Successful Alliance
SELECTING A PARTNER Peter And Robert Chin Join Forces To Create An Alliance Assembling The Alliance Leadership Team The Numbers Tell The Story - Financial Analysis Of The Alliance Expansion Is The Name Of The Game For Alliance 2017 And Beyond Why At Alliance “The Customer Is Always Right, Even When They Are Wrong.”
MAKING THE ALLIANCE WORK Making The Alliance Work With The Right Product And Service Offerings. MoneyGram International - Self-Service Investments Focused On An Exceptional Consumer Experience Alliance Payment Services Limited - Driving The Cashless Revolution Alliance Philanthropy Is Getting “Green” From The Greens
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CREDITS Publisher Businessuite News Centre (BNC) a division of the Blackslate Media Group businessuitemagazine@gmail.com/ www.businessuiteonline.com Check Out Our Other Special Digital Issues @ http://issuu.com/businessuitemagazine Contributors Michael Edwards Kayla Wright Aldo Antonio Group Marketing & New Business Development Aldo Antonio aldo@blackslateholdings.com Advertising Sales businessuitemagazine@gmail.com Social Media CLICK Digital Agency http://theclickdigitalagency.com/ Graphic Design & Layout Miguel A. Rowe of MD Studio mdstudio09@gmail.com Photo Credits Internet And Contributed. Businessuite is your source for information, news and tools on starting, running and growing your business. We know your time is valuable and scarce, so we take the time to find, create and present all the information that will be relevant to the success of your business. Businessuite Magazine, Businessuite Online, Businessuite Digital, Businessuite Today, Businessuite Minute and Businessuite News Channel are owned and operated by Blackslate Media Group a division of the Blackslate Holdings Group Limited
editorial
Businessuite Magazine
3 Steps To Forming
A Successful Alliance
A
n alliance represents a relationship between two or more people/ groups that have joined together for mutual benefit or to achieve some common purpose. In the context of business, an alliance is often bounded by a single agreement with equitable risk and opportunity share for all parties involved.
For brothers Peter and Robert Chin, the decision to transform their family relationship into a business one was inevitable. After all, who could be more perfect to partner with than your brother and how much better can you make it work than with determination? Businessuite Special Edition - 5
editorial (cont’d)
Businessuite Magazine
Twenty years ago, the Chin brothers had a simple aim, to create an investment company of the type they wished to see, a company that would provide individuals and corporations with successful, time tested approaches alongside innovative options for investment and financing. To form a strong, lasting and successful alliance, three steps are necessary to take: 1. 2. 3.
You select the partner You cut the deal and You make it work
Selecting a Partner Any company or even person that has something you need is a potential partner. That is, provided you have something they need as well. For an alliance to succeed, both companies and individuals must benefit from it. Having come together and decided it was time to branch out on their own, the Chin’s had one (of many) things left to do: pick a team with like minds, passion and the determination to succeed.
Cutting a Deal Next, Peter and Robert had to make their business plan attractive, based on their industry, to clients and potential investors. In many respects, this is the most important moment of the alliance dance. This represented their chance both to lay the foundation for a productive relationship and to uncover potential hazards.
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Making It Work When a company retains some of the same investors from its creation 20 years ago, it can only be determined that that first dance was a hit. Safe to say, the Chins were successful in attracting investors, so much so that the company's asset base had moved past $200 million in the first month with funds under management topping JA$1billion at the end of the first year. When Peter and Robert decided to go into business, they chose each other. From those auspicious beginnings, the pair has carefully built the business, strategically adding new business lines and expanding their footprint, creating opportunities for bright young minds to join the firm. Excellence is pursued through prudent investment practices and the creation of optimal financial solutions to all clients. Under the guidance of Peter and Robert, the company has sought to fully appreciate each client's financial goals and strive to achieve those goals with timely solutions. In this our Special Businessuite Digital Corporate Issue, we consider and go inside Alliance Investment Management; Financial Da Vinci’s, twenty years on. BM
Editorial Note: This issue of Businessuite Magazine is a special corporate feature on Alliance Investment. The content contained herein has been sponsored by Alliance Investments; however, our opinions remain unbiased and objective. BM
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SELECTING A PARTNER
Peter And Robert Chin Join Forces To Create An Alliance.
P
Robert and Peter Chin at the Company’s 10th Anniversary Celebration at the Jamaica Pegasus in 2007.
eter Chin will tell you that it was always his dream to start and run his own company. in an area that he had a particular liking, passion and knack for. Given his strong accounting and finance training and professional background the highly profitable and often times risky financial services sector was an obvious selection. Raised by parents who themselves were entrepreneurs, Peter and his brother Robert Chin were expected to follow in their footsteps. Theirs would be a search for a vocation equal to their passion applying the Confucian values of strong family loyalty, ancestor veneration and his ‘Golden Rule’: Do not do to others what you do not want done to yourself”. Values they
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observed growing up in their parent’s home. The decision ahead was not an easy one. Peter was relatively comfortable financially and was on his way up the proverbial corporate ladder working for someone else in New Kingston, Jamaica’s business capital. At the time he was the General Manager of Issa Trust and Merchant bank having been headhunted in 1993 by the House of Issa, a century old family owed conglomerate to relaunch its fledging merchant bank which had ceased operations in 1973. Over on the other side of the island in Montego Bay the tourist capital, his brother Robert was the managing director of Billy Craig Merchant bank and was on a similar career path in the financial sector. He too was itching to move out and start his own business. After 18 years of honing his skills and developing the key connections and contacts he would need to make his own enterprise successful Peter deiced it was time to start the process and called his brother. For the brothers, the decision to transform their family relationship into a business one was inevitable. After all, who could be more perfect to partner with than your brother and how much better can you make it work than with determination? During their time working for others, the brothers were determined; they had a vision for something else, and they knew that "something else" would require a level of dedication and focus.
“We were entering the financial sector at the worst time possible”, said Robert “so we sat down and examined in detail what the failed companies were doing and not doing right and importantly what made 10 - Businessuite Special Edition
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the foreign owned banks so attractive to Jamaican investors. The approach they took was to keep their full time job while getting the fledging startup registered. Simultaneously they were quietly feeling out prospective clients and early stage investors to see how receptive they would be to giving their hard earned money to them to manage. They quietly registered Alliance Investment Management in August 1996. The brothers were entering the highly profitable and often times risky financial services sector. Now there was no turning back. There was good reason for this approach, as the word FINSAC was driving fear into both investors and public alike. This was no ordinary time and venturing into the financial sector at this time in particular was considered an act of madness and financial suicide. The Jamaican financial sector was going through a crisis leading to the collapse of more than half of the existing banks, insurance companies and building societies. Depositors and investors had lost faith in the indigenous financial institutions and were moving their money to foreign owned banks such a Scotiabank, CIBC and CITIBANK, creating severe liquidity problems and dislocations. “We were entering the financial sector at the worst time possible”, said Robert “so we sat down and examined in detail what the failed companies were doing and not doing right and importantly what made the foreign owned banks so attractive to Jamaican investors. We figured that if we could avoid those mistakes and pitfalls we would have a higher probability of success” The brothers came up with three key pillars for their success and on which to build their fledging company: 1. Ensure A Higher Level Of Transparency In The Operation Businessuite Special Edition - 11
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Of The Business To Clients And Investors 2. Stick To Core Business And Competence. 3.Provide The Best Customer Service And Experience Possible The best business plans will not work if not properly capitalized and the Chin brothers knew this. Having mobilized their own personal resources and that of close family members, they put together a short list of potential investors and went out to pitch their vision with a wellcrafted business plan in hand. They needed to tap early stage investors, with a high level of risk tolerance to provide the shortfall needed to fully capitalize the business. The brothers were successful attracting investors raising JA$20M in their first investor round. Peter related to Businessuite Magazine a piece of advice he once told a friend who had come to him for guidance on starting his own business. He told the friend, its fine to start your own business and keep your full time job, but he told the friend, you will have to choose very quickly which one you will focus on as you cannot do both successfully. Words of wisdom he was also telling himself. It was time to go, leaving their safe harbor of a full time steady income. The brothers quit their full time jobs in December 1996 and started January 1997 as masters and captains of their future and destiny.
“Its fine to start your own business and keep your full time job, but he told the friend, you will have to choose very quickly which one you will focus on as you cannot do both successfully.� Twenty years on, founding brothers Peter and Robert Chin have created an investment company of the type they always wished for, a company that would provide individuals and 12 - Businessuite Special Edition
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corporations with successful, time tested, approaches alongside innovative options for investment and financing. Customer driven, seeking to build commitment and partnership with their clients, associates and employees. So successful was Alliance in its early years in attracting investors and clients that the company's asset base moved past $200 million in the first month and funds under management topped $1billion at the end of the first year of operation. 20 years on Alliance Investment management is a highly profitable operation and holding company growing at a steady pace expanding the founders financial and investment footprint. THE ALLIANCE GROUP NOW COMPRISES THE FOLLOWING BUSINESS UNITS. Alliance Investment Management Limited (AIM) is positioned as a boutique investment firm catering to professionals, companies and high net worth individual for which it is licensed as a securities dealer offering investment and financial advisory services. Alliance Financial Services Limited (AFSL) is licensed by the Bank of Jamaica to offer cambio and remittance services. The company is one of the most dominant players in the Jamaican foreign exchange market. AFSL is a MoneyGram Master Agent with over sixty outlets islandwide. Alliance Finance Limited was established in 2012 and is a leader in the Insurance Premium Financing market. Alliance Payment Services Limited is authorised by the Bank of Jamaica to issue prepaid cards under the Electronic Retail Payment Services Guidelines. The cards are issued under the ePAY brand and are widely accepted by merchant’s islandwide. Businessuite Special Edition - 13
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Assembling the Alliance Leadership Team & Family Take a poll of the staff at Alliance Investment and even of their clients, and an amazing uniformity comes forth in the responses. Words like "family" "openness" and "close-knit" come back with a uniformity that is stunning - if not even mildly irritating - to the uninitiated observer. Can they, to borrow a line from a hit song of the past, be that close? Really? The answer is yes, and that unrehearsed and unpretentious camaraderie is a big part of the reason why Alliance Investment Management is a dominant force in the financial services sector and is still growing after 20 years.
“By carefully melding traditional values with rational innovation, Alliance has charted a course of success and stability for a growing number of clients.� Businessuite Special Edition - 15
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Over those two decades, Robert, Peter and their team at Alliance have carefully built the business, strategically adding new business lines and expanding their footprint, creating opportunities for bright young minds to join the firm. Managed by an experienced team of professionals who have had successful careers in banking, investment and finance both locally and internationally, Alliance provides asset management and financial advisory services to meet each client's specific needs. Peter and Robert Chin have built Alliance Investment Management into one of the most respected and consistently successful wealth-building and merchant banking firms in the country and the region. By carefully melding traditional values with rational innovation, Alliance has charted a course of success and stability for a growing number of clients, many of whom were referred by the original patrons, and many of those mortality notwithstanding - remain with the company to this day. Now, having navigated through its own version of storms and choppy seas, and kept the vessel not merely afloat, but dynamically progressive, the Alliance team is again setting off on a journey into other fast-growing fields. The team continues to provide sound management charting a course of success and stability for the company and its clients. BM
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Sophia Richards-Williams Manager – Manager Remittance Sophia considers herself a problem-solver. Being at Alliance over the course of 16 years, she has applied her outgoing yet efficient nature in advancing the Alliance cause, and in responding to the needs and concerns of clients. She has taken the time to remain a devoted wife and mom. Mignonette Reynolds Assistant Vice-President of Admin and Operations. Mignonette came to Alliance (she was in fact called) after an extended stint in the commercial banking sector. At the time, she was not exactly of a mind to return to fulltime employment but nevertheless responded affirmatively to the call. Eighteen years later, she is reflecting on an eventful and rewarding journey with Alliance, having seen the company, along with the founders, through some of the sterner challenges to face the evolving financial services sector in the postFINSAC era. Ro-Yen Chin-Forbes Manager Trading Alliance is hardly the typical firm and, RoYen, daughter and niece of Alliance founders Robert and Peter Chin respectively, is hardly the typical manager. Ro-Yen Chin-Forbes grew up in the business, Businessuite Special Edition - 17
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having been gradually exposed to and active in virtually every department. Her present official role is Manager, Trading, but she has a hand in several other aspects of the operation, and her creative touch is also evident in the logo for the company's 20th Anniversary celebrations. Richard Graham Manager Treasury Richard may well be deserving of the name "Showtime" as his natural personality is very much aligned to the world of show business and television. But understand that behind that "showbiz" exterior is a serious and knowledgeable financial profession, who, despite being among the later arrivals at Alliance, puts his knowledge and experience to work for the benefit of his colleagues and the company. Richard greatly appreciates the close-knit atmosphere of Alliance and envisages the company maintaining that ethos even as it continues to grow and to embark on new business lines and ventures. Claudette Williams Assistant Vice President, Finance Officially dubbed the Assistant Vice President, Finance she notes customer loyalty and personalized customer service as the reason Alliance is twenty years strong. Claudette is big on family and church and although not yet a mom herself, she loves children! And with the Alliance family becoming bigger, it’s one of the many reasons she smiles. 18 - Businessuite Special Edition
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Sharon Hetridge Manager-Compliance The newest member of the Alliance management team, Sharon notes a symbiosis of loyalty – between Alliance and their clients based in long-term relationships as the reason they can celebrate twenty years. She continues (and insists that we make note of it) “at Alliance first-class service underscored by a customer-centric focus continues to build and maintain profitable relationships.” And she’s all too excited “to see our growth in the many years to come.” And based on where she sits, she should know! Arnie Francis General Manager Alliance Finance Joining Alliance just short of five years, Arnie sure knows time flies when you’re having fun. Charged with building out one of the companies within the group, Arnie cites excellent service and forging longterm relationships with clientele efficiently all-around as one of the reasons for their success. He further states with smiling eyes almost as thou he is satisfied, that it’s the team directed by the principals who are quite knowledgeable coupled with their open-door policy that has ensured steady growth for Alliance. And no, he’s not tooting a horn, but it is after all the Alliance way, never duplicated. It is a formula held very close to their chest. Businessuite Special Edition - 19
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The Numbers Tell The Story - Financial Analysis Of The Alliance “If investors don’t have confidence then our business is shot.” Peter Chin
As a privately held company Alliance Investment Management is not required to divulge the inner workings of its financial performance beyond that required by the regulatory agencies and the central bank. Businessuite was however able to secure a peek into the books. In its most recent report on consumer/ business confidence, the Jamaica Chamber of Commerce (JCC), indicated that economic confidence among Jamaican firms increased to an index of 142.0 for the fourth quarter of 2016, up from 139.2 experienced a quarter earlier.
“Pre the IMF, there was some amount of uncertainty. Then the PNP administration came into power, successfully renegotiated an IMF agreement and stuck to the terms and requirements. This resulted in a little more stability which affected the Alliance business.” It found that the increase in business confidence indicates that Jamaica remained at record high levels for all four quarters of 2016 than at any time over the last 15 years. The country peaked in the first quarter of 2016 when business confidence stood at an index of 144.6. Alliance has benefitted from this increased investor and economic confidence resulting in gross profit for the year ended September 2016 amounting to $148.8 million and a net profit of $99.35 million. This is a 33.4% and 16.24% increase (respectively) over the gross profit $111.5 20 - Businessuite Special Edition
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The Numbers Tell The Story - Financial Analysis Of The Alliance (cont'd) million and net profit $85.47million reported for the same period in 2015. Co-Founder and President Peter Chin is however quick to point out that while this increase is not as large as the 2015 and 2014 year comparisons, it does represent a boost for the company. For the 2015 period, Alliance reported a net profit of $85.5 million, and a $32.66 million increase over the $52.8 million reported in the prior year. Commenting on the overall boost, Chin told Businessuite Magazine that the company continues to benefit from increased investor confidence and a more regulated and consistent market. “Pre the IMF, there was some amount of uncertainty. Then the PNP administration came into power, successfully renegotiated an IMF agreement and stuck to the terms and requirements. This resulted in a little more stability which affected the Alliance business. If investors don’t have confidence then our business is shot.” Ever modest, the brothers put this stellar performance down to "investor confidence and prudent management" but confidence, that most valuable and ineffable of currencies, is never given lightly.
Just how did they earn it? According to Robert, "by maintaining our focus on areas that we know would give good returns rather than jumping into things that were speculative and about which we didn't know”. BM Businessuite Special Edition - 21
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Peter and Robert Chin At the 2010 MoneyGram Office Opening
Expansion Is The Name Of The Game For Alliance 2017 And Beyond Careful and strategic expansion is the name of the game for 2017 and beyond. According to President, Peter Chin, the company has and will continue to focus on “expansion and a continued diversifying of our portfolio and partnered with the boost in investor confidence on the investment side that is where we expect the company’s growth to stem from.”
“We’ve been asked by a number of brokers who want to offer their services and we’ve been asked by public companies to merge but we have not taken them on yet.” 22 - Businessuite Special Edition
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From all indications the economic forecast going forward is conductive to this kind of optimism. Don Anderson, in summarising the above referred report of the JCC Conference Board, stated that for 2016 as a whole, the business confidence index averaged 141.9, marking the third annual gain since 2013 when the country recorded an index of 94.7. Speaking with Businessuite Magazine, Peter Chin indicated that chief among the expansion plans is for the increase in MoneyGram outlets. “If you look at Alliance Financial Services, which is in the cambio business, and also in the remittance business, those businesses have been growing and we’re hoping to expand the MoneyGram network. We have a reasonable position in the cambio business and we’re constantly updating that and hopefully will grow it more”.
THE POSSIBILITY OF GOING PUBLIC Peter says the idea of going public via an initial public offering on the Jamaica Stock Exchange is still something that might happen, indicating that the issue had been brought up before and although at the time it was not a beneficial proposition that does not necessarily rule it out in the future. “We’ve been asked by a number of brokers who want to offer their services and we’ve been asked by public companies to merge but we have not taken them on yet. It’s just something we have spoken about but not necessarily made a decision on. We don’t think it’s the right time. Of course, this doesn’t rule out that later on down the line we won’t reconsider it. There are benefits for being public and benefits for being private. Generally you go to the market if you need to raise capital to do something or if you want to cash in on some of the value you’ve built in the company,” however, Chin says, Alliance does not necessarily require more capital, at least at the moment and the founders are not ready to cash in, either in whole or part.
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INVESTMENT OUTLOOK
“If the companies continue to do well, there is nothing to stop the economy from continuing on that trajectory” According to the International Monetary Fund (IMF) the global economy is expected to grow by 3.4% in 2017 and while that’s an increase over the 3.1% growth rate for 2016, it still represents a slight downgrade of the IMF’s original forecast. The downgrade was triggered by a dampening of the economic outlook in the wake of the U.K. Brexitand a U.S. economy that didn’t grow as quickly as initially expected. Speaking with Businessuite Magazine, the Alliance President with his usual provisory to seek independent advice and his usual conservative approach to investment has named international stocks and real estate as his top picks as far as investment options for 2017. These he says based on current market trends and outlook for the local and international economy are sectors expected to provide the greatest returns. Chin says that while in his view, both the local and US markets have been doing extremely well, he is not sure in the case of the current Jamaican stock market bull run if it will last and for local stocks in particular he is predicting a major correction. “Over the last 24 to 36 months, the Jamaican market has been on an upward trajectory, but I don’t know how much legs the market has. I may be wrong.”
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“………In the case of the current Jamaican stock market bull run he is predicting a major correction”
On the other hand Peter feels that the local economy is doing well, the results have been well and if the companies are doing well then the market will continue to. He says if the companies continue to do well, there is nothing to stop the economy from continuing on that trajectory. “Although my gut will tell me that the companies and the market have had a successful and long bull run, there must be some correction along the way. On the flip side, if the companies continue to do well, there is nothing to stop it from continuing on that trajectory”. Additionally, Chin says based on current projections, it would be wise to have some stocks in your back pocket. “And you know also over the next 12 to 18 months, stocks in US market will be the place to be”. The Investment Manager warns however, not to take his word for it, do your own research and prepare for the possibility of correction, he councils, “Stay vigilant because of the sustained long bull run both markets have been on, it would seem there’s the possibility of some amount of correction”. BM
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Why At Alliance “The customer is always right, even when they are wrong.” When asked what personal philosophy, he had translated into how he manages his business; Peter Chin paused for a moment and then smiled. “The customer is always right,” he said, “even when they are wrong.”
“At Alliance, you feel like a person, rather than an account number or even just a customer with a file.” The phrase, made popular by pioneering and successful retailers such as Harry Gordon Selfridge, John Wanamaker, Marshall Field and Jamaica’s own Carlton Alexander and Danny Williams, encourages service staff to give a high priority to customer satisfaction. It advocates that customer complaints should be treated seriously so that customers do not feel cheated or deceived. At Alliance the team and even their clients typically reference the vibe and mood among them as "family" 26 - Businessuite Special Edition
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describing the relationship in terms such as "openness" and "close-knit" a uniformity that is stunning - if not even mildly irritating - to the uninitiated observer. Take for example Sonia Vassal-Hurd an Alliance client for many years who was relaxing inside the Alliance offices when Businessuite arrived for our fact finding mission. She caught our attention and we immediately honed in on her. Why? Well, Sonia Vassal-Hurd readily was giving the impression that she was in her own living room. It’s am impression that she doesn’t really dispute. “I really feel at home when I’m here” she acknowledges. That “homey” feeling has been part of her Alliance experience for almost two decades, and during that time she has had scarcely a thought of any other place for her funds. “At Alliance, you feel like a person, rather than an account number or even just a customer with a file.” she shares. “From the first encounter to the latest, from the voice of the receptionist to the completion of an order, it’s pleasant as well as professional….every time.” For Peter Chin that business posture is essential to remain successful in business and as far as he is concerned, the key is to please the customer. “As a service provider, your focus needs to be on pleasing the customer, especially considering how competitive our current market environment is. Over the last few years you’ve had more dogs than bones so you have to make Businessuite Special Edition - 27
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sure you treat customers how even you want to be treated”. Represented in the company’s mission statement itself, the idea of making the customer feel like a part of the Alliance family is more than just a belief, it’s a lifestyle. William Tavares-Finson is a serial entrepreneur, sometime art auctioneer and noted wit (at least, in his own mind). His initial response to Businessuite Magazine when we enquired as to why he has stayed with Alliance was simply to help the founders with their terrible golf games. “I’ve taught them everything I know, and still no success,” he says. But Tavares-Finson is a long standing client of Alliance and seriously offers this time that he is seriously impressed with the performance of Peter and Robert Chin and the Alliance team as financial and investment professionals. “They not only are better than everyone else at maintaining a conservative yet high-growth portfolio, they manage to do it with a very informal, engaging and opendoor style.” John Graham is one of Jamaica’s most noted and much sought after attorneys, whose offices are located on the same premises as Alliance – virtually eyeball distance-attests to the virtues that make the firm not simply a “good neighbour” but a partner in success. “More than the safety in their approach, it’s the integrity in their practice and also the informality of their dealings that make it 28 - Businessuite Special Edition
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“We are customer driven, and seek to build commitment and partnership with our clients, associates and employees. Excellence is pursued through prudent investment practices and the creation of optimal financial solutions to all clients. The company seeks to fully appreciate each client's financial goals and strive to achieve those goals with timely solutions. Success is measured only by the level of customer satisfaction”.
easy to not only continue but strengthen the relationship.” Graham indeed sees the relationship strengthening over the years to come, and with the Alliance front door a few steps away, it should be quite an easy task. And like other long-time clients, Graham and TavaresFinson have referred friends and professional contacts to Alliance. It’s clear however that to achieve optimum customer satisfaction you have to ensure that your staff, in particular front line team members who regularly interface with customers are highly motived. Richard Bronson founder and chairman of the Virgin Group is noted for famously saying that his philosophy has always been, if you can put staff first, your customer second and shareholders third, effectively, in the end, the shareholders do well, the customers do better, and yourself are happy. A casual canvass of the Alliance staff will reveal a highly motivated team. Claudette Williams Assistant Vice President, Finance notes customer loyalty and personalized customer service as the reason Alliance is twenty years strong. Businessuite Special Edition - 29
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For Sharon Hetridge Compliance Manager and the newest member of the Alliance management team, a symbiosis of loyalty – between Alliance and their clients based in long-term relationships as the reason they can celebrate twenty years. She continues (and insists that we make note of it) “at Alliance first-class service underscored by a customer-centric focus continues to build and maintain profitable relationships.” And she’s all too excited “to see our growth in the many years to come.” And based on where she sits, she should know! The Mission Statement at Alliance is taken seriously and reinforced by Peter Chin’s customer focused approach to running the business that he has carefully grown and nurtured over the last 20 years. Tavares-Finson sees the firm retaining its “hightouch, high-pro” style with a greater client load. He is confident that the team assembled by the Chin brothers is well-tested and capable of continuing to deliver at the high standards. Chin believes that this is also what makes Alliance Investment Management different from its competition and attractive to investors. “To us, customers are more than just a ticket number. How many businesses can you go in and say hi to the manager directly? We’re like old friends and we treat them as such.” How does he see the firm retaining its “hightouch, high-pro” style with a greater client load? He is confident that the team assembled by the Chin brothers is well-tested and capable of continuing to deliver at the high standards. BM 30 - Businessuite Special Edition
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Making The Alliance Work With The Right Product And Service Offerings Alliance is a boutique investment firm catering to professionals, companies and in particular high net worth individual� According to Robert Chin, they have grown the Alliance product and service offering by maintaining a focus on areas that they know best and would give good returns rather than jumping into things that were speculative and about which they didn't know. As a boutique investment firm catering to professionals, companies and in particular high net worth individual the brothers sought to offer a combination of products focused on securities dealing and offering investment and financial advisory services.
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Online Stock Trading & Global Investing Inside the Alliance offices, a monitor to the rear of the foyer remains fixed on Bloomberg TV and its regular updates of equity and bond markets around the world. And with good reason. Alliance through its website offers its clients online trading on the NASDAQ, New York Stock Exchange and American Stock Exchange. Its trading clients get way more than just a rolling update; the firm provides advice- based on unparalleled research, and supported by an industry-leading platform that offers security, responsiveness, search ability and flexibility. Global investing is offered to clients allowing equity purchase in stocks of the world’s biggest and profitable public companies, including debt securities of sovereign governments and blue chip companies. Incidentally, the "stock ticker" or running summary of share price movements that has long been a staple on financial channels like Bloomberg, owes its beginnings to Western Union, which debuted the Thomas Edison invention back in 1866. Treasury Management Once an offshoot of the accounting department, corporate treasury management has evolved into its own company department and professional body. With the development and proliferation of financial instruments and the globalization of financial markets and companies, treasury management has become more specialized, complex and time-consuming. Treasurers serve as financial risk managers seeking to protect a company's value from the financial risks it faces from its business activities. At Alliance, the Treasury team combines 32 - Businessuite Special Edition
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market knowledge and razor-sharp financial instincts with superior interpersonal skills to keep the Alliance Investment engine humming. Indeed, this style of "bi-valent management, a style that features the seamless combination of seemingly disparate skill sets in the same individuals and teams, is a hallmark of the entire Alliance operation. They may not be the only firm employing this style, but on the evidence of the past two decades, they are certainly perfecting it. Remittance Services Among geographical regions, Latin America and the Caribbean has seen the most rapid growth rate in remittances in 2015, of 4.8 percent, due to the recovery in labor markets in the United States. Growth is expected to continue in 2017 coming out of 2016, albeit at a slower pace, with remittances expected to reach $69.3 billion this year, from $66.7 billion last year. Despite the ongoing trend of de-risking, with major international banks continuing to close correspondent banking accounts of money transfer operators (MTO), Alliance sees continued growth in its remittance business, under the MoneyGram banner, and is seeking to expand its agency network, and also to facilitate payment receipts and other related transactions through the use of a pre-paid card. BM
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MoneyGram International Self-Service Investments Focused On An Exceptional Consumer Experience MoneyGram International can trace its roots back to 1940, with the founding of Minneapolis-based Travelers Express Co., Inc. Under parent company Viad Corp., Travelers Express quickly became one of the world's largest processors of money orders and a key player in the electronic payments industry, with ties to big-name businesses including bus company Greyhound Corp. and soap maker The Dial Corp. In 1998 came a change that would form MoneyGram and ultimately lead to the company's success in the money transfer industry. Viad Corp purchased Denver-based international money transfer company MoneyGram Payment Systems Inc. Founded in 1988; MoneyGram Payment Systems Inc. was a subsidiary of a company that also owned Western Union. Travelers Express and 34 - Businessuite Special Edition
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MoneyGram Payment Systems Inc. were seamlessly united to form MoneyGram, which quickly became a globally recognized and well-trusted brand. Then, just before midnight on June 30, 2004, Viad sold MoneyGram, and it became a publicly traded, individual entity. Today, under chairman and chief executive officer Alex Holmes, MoneyGram is the second-largest money transfer company in the world. We have a track record of targeted growth and are wellpositioned in a nearly $600 billion - and growing - industry. MoneyGram now offers services at approximately 350,000 agent locations in more than 200 countries, and has an aggressive expansion plan that includes 15 to 20 percent of money transfer revenue from self-service channels including online, mobile, account deposit, ATMs, and kiosks. We believe that self-service investments focused on an exceptional consumer experience are integral to our continued success. BM
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Alliance Payment Services Limited - Driving the Cashless Revolution
Not exactly the newest frontier- at least not on the surface. After all, various firms have been involved in the practice of moving money for well over a century. But, as several experts have noted, the global payments business is in a period of deep transition. A host of factors, including technological innovation, economic shifts, heightened regulations, and the increasing number and influence of non-traditional payments providers, are rapidly reshaping the payments landscape making it harder than ever to navigate. Indeed, digital solutions are revolutionising financial services for the unbanked, here in Jamaica and overseas, with customers even able to top up or withdraw funds 36 - Businessuite Special Edition
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Alliance Payment Services Limited - Driving the Cashless Revolution (Cont'd)
from their mobile wallets at allocated locations. It is into this seeming maelstrom of change and opportunity that Alliance has, over the past few years, been trimming its sails to enter. It’s just that "the Alliance Way" is neither boisterous nor excessively reserved. Think of it as "natural modulation" initiated by the Chins and perfected over 20 years to the point where its second nature even to the most recent additions to the team. And it’s certainly not unnoticed by clients and visitors. In an industry marked by the entry of new (and redefined) players and a general fickleness among the customer base, Alliance has steadily enjoyed a customer retention rate over 90% (and even over 95%). That's a level of admiration that even FORTUNE 500 multinational corporations might envy.
Societies around the world are discovering that cashless transactions are the key to correcting economic disparities and boosting economies. Due to the significance of this emerging industry and the unique opportunities in this space, AFSL created a new entity – Alliance Payment Services Limited (APSL). APSL’s guiding principle is the leveraging of existing and emerging technologies, to deliver cashless solutions to clients and cardholders that provide first world Convenience and Value. Businessuite Special Edition - 37
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Today, APSL is a Bank of Jamaica regulated entity that provides card and electronic transaction processing services to clients and customers across the island. APSL has launched a variety of prepaid card services under the ePAY brand that facilitate a variety of electronic transactions and loyalty rewards. These services include: • Cashless Schools Program: In response to rising crime affecting students and schools, this program provides the tool that enables electronic transactions on campuses across Jamaica and provides a secure learning environment for both students and faculty. Students use their Student Cards to purchase meals from the school canteen and conduct any other transactions while at school, reducing the risk associated with carrying cash. • ValuCard Program: In collaboration with some of Jamaica’s premier brands, this program provides local civil servants with Cash Back rewards when purchasing everyday items. Cash Back rewards are paid to each cardholder’s card account weekly. • Employee Benefits Program: This program extends the ValuCard program to benefit Private Sector employees. Additionally, the card provides employees access to a variety of services that can be accessed via the company’s website epayja.com or their Mobile App. Companies may also choose to utilize the service offered by APSL to manage their Employee Meal Program and on-site concessionaire.
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In addition to Cash Back earned on everyday purchases, ePAY Cardholders have exclusive access to a variety of electronic services, available through the use of their ePAY card, website and Mobile App. These services include: •Purchase of Meals for Delivery •Purchase Mobile Top-Up •Pay Utility Bills •Make Purchases (groceries, meals, gas etc.) at participating merchants •Pay School Fees (participating schools only) •Transfer funds to other ePAY Cards •Access to Lasco’s PayDay Loan Facility “We know convenience, safety and security are the top priorities of our customers, cardholders and partners.” As stated by Director, Peter Chin, “APSL is committed to innovation and the process of continuous improvement, in bringing unmatched convenience, security and value to our cardholders and partners.” APSL’s vision of the future is to become a driving force in the local payments industry, providing quality service and support to clients and cardholders. BM
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Alliance Philanthropy Is Getting "Green" From The Greens 40 - Businessuite Special Edition
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D
espite its long history (the Mandeville course is the oldest in this Hemisphere), and its links to both tourism and corporate enterprise, golf remains a generally "anonymous" sport for many Jamaicans. It’s relatively expensive to play, requires expanses of land, and unlike many other sports, emphasizes the lowest rather than the highest score to win. This however is creating significant opportunities for Alliance principals Peter and Robert Chin, themselves serious golfers - Peter also being head of the Jamaica Golf Association and thus the main advocate for the sport. But there's some important synergies in golf's "clubby"(pardon the pun) atmosphere, among the business elite, that the Alliance principals are keen on exploiting. Their participation in golf tournaments - be they the renewal of the prestigious Jamaica Open, or more private gatherings, the sport affords the opportunity to network and prospect among the country's monied men and women to grow the Alliance business. It also offers the opportunity to keep in touch with existing clients, to sometimes fete them and to generally coax them into increasing their investments or to offer valuable referrals. Simply put, there's green to be gained from hitting the greens. That philosophy, married with the Alliance high-touch service credo, is the pillar of the company's Golf Retirement package. Several financial firms offer retirement plans, but Alliance is the first such plan to be formulated and pitched specifically around golfing, and thus targeted at offering golfers a safe retirement from an investment perspective. Golf also presents another business opportunity for Alliance. Through its sponsorship of and participation in the growing number of charity golf tournaments the company polishes its badge of good corporate citizen Businessuite Special Edition - 41
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Peter Chin, President of the title sponsor Alliance Investment Management presents his company's sponsorship cheque to Teddy Richards (centre) of the Buccaneers in 2014. (Right) Michael Chung of the Laws Street Trade Training Centre.
(Alliance also directly supports a number of educational, other sports and community causes), affecting a large number of beneficiaries, while retaining the patina of its brand as a high-end, boutique investment house. With, as JGA President Peter Chin, indicates, some 30 million being raised on average each year by the various tournaments for causes great and small, it’s clear that Alliance will continue to have a strong presence on the island's courses. The prospect of growing its investment business through networking makes it an even more compelling proposition. BM
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