The Independent

Page 1


The Beginning

Picture it, Jamaica, the early 1860s. The period of apprenticeship has ended and the lot of the Negro has not improved since the Emancipation of slavery in 1834. Sugar, the mainstay of the economy, continues to decline and most of the plantations have been abandoned. The ex-slaves are therefore trying to find other ways of making a living. Hopelessness, anxiety, and frustration permeate their very existence. It was no surprise that by 1865, the frustrations of the Negro race reached boiling point and found its release in the Morant Bay Rebellion. In the midst of this turmoil, an Anglican Priest, Rev. George William Downer who was one of the many clergy men who saw it as their lives’ calling to help to improve the condition of the ex-slaves, witnessed firsthand the injustices being experienced by the masses. In 1878, while serving as Rector of the Kingston Parish Church, Rev. G.W. Downer, along with a group of clergymen, founded The Victoria Mutual Building Society to help ordinary Jamaicans own their homes and achieve financial independence through land ownership. VMBS became a place where the industrious poor could save as little as they could afford with the hope of borrowing to build their own home; something that would normally be an elusive dream. They were now able to enjoy the status of being a part of the formal economy. From the very beginning, VMBS believed that each individual had the right to enjoy a good quality of life.


Resilience

Establishing an institution which enabled the industrious poor to save towards owning a home was only the beginning for VMBS. The road to building a strong organisation was long and gruelling. Growth was steady and slow, but national and international crises impacted the Society’s operations. After the earthquake of 1907, many buildings in Kingston came crumbling and many individuals were left homeless. The Society experienced the loss of its second secretary – Mr. William Arbourin – in the disaster. Many people were out of work at this time, and VMBS Members were unable to maintain their accounts. Additionally, the building at Duke Street was severely damaged, causing it to depreciate in value. All these challenges were further exacerbated by the Great Fire which followed, and lasted for four days. But Victoria Mutual remained resilient. The Society’s progress was slow until after the First World War in 1918. Many business people suffered because of the interruption in trade. However, the rate of mortgage lending remained steady. Recovery after the World War was speedy, with the help of a booming sugar industry which contributed to more circulation of cash in the economy. Consequently, the Society achieved the first half million pounds in assets in 1928.


Through the Years The Society boosts many firsts and has consistently led the field in introducing innovative products and services to meet the needs of its Members and the nation. In the 1940s we journeyed with the nation as we achieved Universal Adult Suffrage. We participated in providing mortgages for low-income housing projects and were the first to provide long term funds for cooperative housing in Jamaica. We also introduced to Building Societies, the electronic data processing system. The 1950s was a decade of innovation. We introduced the 20 year mortgage and implemented a reduction in interest rates. We introduced a unique loan called “up-keep” for home repairs under the stewardship of secretary E.K. Richards. In the 1960s we saw the birth of this nation, Jamaica. Victoria Mutual subscribed £10,000 to the Independence Loan. During these fragile formative years into nationhood, we launched a Wise Words series to encourage better public conduct. At the same time the Society was almost ready to reach the 3 million pound mark. By the end of 1965 we had assets in excess of £5 million and the rate of growth continued in leaps and bounds. In the 1970s we introduced the concept of charging interest rates on the reducing


Through the Years (Cont’d) balance and were the first building society to introduce an insurance linked savings plan. We also introduced an equity linked plan so persons from humble beginnings could save towards homeownership In the 1980s we were the first Jamaican financial institution to set up overseas Representative Offices (Service Bureaus) to serve the members of our Diaspora community. During this decade, we intensified our outlook towards nation building and established many of our Corporate Social Responsibility programmes; the National Leadership Prayer Breakfast, the Marriage and the Family Series, the VMBS/St. James Football Association Under 13 Football Competition, and our Head-Start Scholarship Awards programme. The period of the 1990s into the new millennium was marked by rapid expansion and acquisitions which helped to diversify our business offerings. The dynamics of the Jamaican financial services landscape have been evolving and today, we have successfully been able to provide a suite of financial offerings beyond the traditional savings and home loans to include savings and mortgages, wealth management, pension fund management, money transfer services, real estate services and general insurance. The Victoria Mutual story continues and will forever be one of advancement and improving quality of life.


A MESSAGE FROM THE PRESIDENT & CEO


Dear Valued Member: Today, Victoria Mutual celebrates 139 years. We have grown from one office at 72A Water Lane, at the corner of Duke Street, Kingston, to 16 offices in Jamaica, representative offices in Florida and the UK; from a building society that only offered savings and mortgages to a Strong Integrated Financial Group that also offers Pensions Management, Investments, Corporate Finance, Property Services, and Money Transfer. What an enviable achievement! I am pleased to reflect on this past year, in which we have had many positive developments to celebrate. We have redefined our Strategic Goals and Core Values, reviewed our products and services to make necessary improvements, and enhanced the benefits of membership to return greater value to those we serve. We have increased our outreach to the community, and our team is stronger than ever. SIGNIFICANT DEVELOPMENTS Guided by our Core Values of Integrity, Teamwork, Innovation, Excellence and Member Focus, we recorded the following major achievements this year: • Mortgage disbursements were the highest in our history. • Our Deferred Shares offer in May yielded record subscription. • Our IT project implementations are being well executed. • We launched new Customer Service Standards to help us live out our commitment to our Members. • Our Team Members demonstrated amazing dedication to Team Work and Excellence, working hard to increase productivity levels in all our areas of operation. • New Rules were approved for the Building Society, equipping us to better serve our Members and clients through new products and delivery channels in the years ahead. • Members, you can be proud of your organisation. Permit me to elaborate on the significance of the approval of the New Rules for our Building Society. At our 138th Annual General Meeting (AGM) held on Thursday, August 31, our Members voted unanimously in favour of the rule changes. We are confident that these changes will have a tremendous impact on our business, as we transform into a Modern Mutual in order to better serve you. The New Rules will progress our Modern Mutual Strategic Goal as we are now able to expand our product offerings, particularly with respect to credit products such as credit cards, auto loans and other personal loans, implement more self-service channels, offer you the email notification service option, and generally be more competitive in the marketplace.


Additionally, as permitted by the Banking Services Act, 2017 (BSA) our New Rules provide more ways in which VMBS may raise capital, give VMBS authority to issue a new category of non-membership shares called, “Funding Shares” which may be listed on a recognised Stock Exchange and allow us to expand our reach through Agent arrangements. As a Mutual Building Society, we value our unique structure in which our Members are our owners – and we are committed to securing it. I am pleased to note that at our AGM, Members in attendance also confirmed their own commitment to mutuality. As such, we have put measures in place to safeguard our mutual status. Our Members approved a protection mechanism that will preserve any benefits for current Members and a Mutuality Trustee has been appointed, to act on behalf of Members, and safeguard our institution against any possible attempt at a hostile demutualisation. THANKFUL I must acknowledge the important role that you, our Members and clients, have played through our 139 years of operation. Your loyalty and support affirm that what we do here at Victoria Mutual, is important. We are deeply grateful. If your legacy of support is indeed a prologue, then our future looks bright indeed. I look forward with great anticipation to see all that we can accomplish in the years to come. We are excited about the establishment of the VM Foundation. Through this Foundation, which had its first board meeting on October 12th, we look forward to furthering God’s work of making lives flourish. For 139 years, Victoria Mutual has been the leader in financial inclusion, with our commitment to helping ordinary Jamaicans realise their goals. Today, we remain dedicated to keeping Victoria Mutual moving forward, true to our purpose of empowering our Members to fully participate in the financial sector and achieve financial independence. As we look to the future, we will continue to strive towards our vision of being the leading Caribbean-based mutual provider of financial services.

Courtney Campbell Courtney Campbell President & CEO Victoria Mutual Group


STATEMENT OF MUTUALITY Victoria Mutual is a proud Jamaican mutual financial organisation that has been empowering its Members to acquire homes and achieve Financial Independence for over 138 years. Our mutual status means that we are owned by and run for the benefit of all our Members, regardless of the size of their savings account or mortgage loan. We operate on the principle of ‘One Member One Vote’; therefore each Member has an equal voice when voting on the business of the organisation. We do not have external shareholders, so our main driver is creating value and improving the lives of our Members. We do so by giving attractive rates on our savings, investment and loan products, charging the lowest transaction fees in the market and providing unmatched service across all distribution channels and at all points of interaction. We are committed to prudent management, and therefore apply our knowledge and expertise, careful planning and measured risk, as we make sound investment decisions. In addition to providing value to our Members, we also focus on being a Model Corporate Citizen, by encouraging greater inclusion and the advancement of individuals and families, so that we can foster sustainability within our communities and improve quality of life.


COMMITMENT TO

SERVICE EXCELLENCE At Victoria Mutual we are Member Focused and remain passionate about delivering excellent service as we help you to advance your goals. We recently launched our Group Service Standards which has been established to ensure the delivery of Service Excellence to internal and external Members and clients of the Victoria Mutual Group. We are committed to meeting and exceeding your expectations by delivering the highest quality of service at all times.

We are Member and client focused with Service Excellence as our standard.


Victoria Mutual would not have achieved

139 years of service

without the loyal support of our Members. We travelled across Jamaica just to say “Thank You� to some of our long serving Members.

DUKE STREET

Simone George-Davey Branch Manager

Leo and Norma White VMBS Members


MANDEVILLE

Sylvia James VMBS Member

Robert Foster Branch Manager


FALMOUTH Faithline Campbell Branch Manager

Radcliff Lewis VMBS Member

Nadine Welcome-Maxwell Financial Services Specialist


LIGUANEA

Mendel Thompson Branch Manager Norma Burke VMBS Member Derrick Burke VMBS Member


LINSTEAD

Cherese Stewart Branch Manager

Angela Christie VMBS Member


MAY PEN Fiona Reid Customer Service Representative

Lorraine Bradford-Coleman VMBS Member

Marsden Dennis Branch Manager


MONTEGO BAY

Rev. Horace Mellish VMBS Member

Suzette Ramdanie-Linton Branch Manager


NEW KINGSTON

Ainsley Whyte Branch Manager

April McClarty VMBS Member


OCHO RIOS Charmaine McConnell-Taylor Branch Manager Noel Bridgett VMBS Member


PORTMORE Joy Bunting-Pusey Branch Manager

Sylveria GrifďŹ ths VMBS Member


SANTA CRUZ Erica Robinson Branch Manager

Ian Brown Maintenance Officer Claudette Montaque VMBS Member Rosamond Mullings Customer Service/Teller Supervisor


SPANISH TOWN

Michelle Gordon VMBS Member Audley Knight AVP, Service & Sales Support


UTECH Shelliann Afflick Branch Manager

Joseph Davis VMBS Member



A LEGACY OF NURTURING AN EARLY SAVINGS HABIT An important part of learning financial prudence, is honing the discipline of saving. Many Jamaicans can testify to having their first savings account with VMBS. Here is a story from the Wint sisters about how having their VMBS accounts instilled in them the habit of saving.

KIMBERLY WINT I can’t remember when I started saving. But, honestly, I was way too young to even remember what age I was. I can tell you I was in prep school though. I remember standing in a line in the Hall to give some of my lunch money to the teacher that was in charge of the Savings Programme at St. Andrew Preparatory School. By the time I got to high school though, I actually forgot about the account. It was when I got to college and there were several things that I wanted to accomplish that I reactivated my account. It became the account that I used for my spending money. However, very soon I figured out a way to only have my savings in my VMBS account and to hold off on the spending. Right now I am saving steadily so I can accomplish my short and long term goals.



A LEGACY OF NURTURING AN EARLY SAVINGS HABIT (cont’d)

KERINE WINT My account was started in 2002 when I was 7 years old through the starter initiative with St. Andrew Preparatory School. My most vivid memory of saving is holding onto all of the change from my lunch money during the week, waiting on every Friday to come around when a VMBS representative came to collect all our coins to add to our account. By high school, every penny did count! Through high school and university, monthly installments at the beginning of the month helped me to stay on track and budget as best as possible. Many times I’ve been tempted to dip into my savings. Sometimes, life doesn’t care about you trying to save for your future and many unplanned expenses can come and go but luckily, it’s never too late to get back on track and start saving again. Each temptation is different but striving for a bigger goal will keep them at bay. Home ownership is a big step and getting a head start really helps. Right now, I actually plan to focus on my career for a while longer before I take that leap so that when the time comes, I am more than ready. VMBS makes saving and planning quite easy. My parents have trusted VMBS for their home ownership needs, I’m confident that their services will be a great fit for me when the time comes.


There are so many reasons to save and the VMBS Million Dollar Winners Club is one more. The 2017 Million Dollar Winners Club promotion gives Members a chance to be a millionaire by simply having a balance of $20,000 or more in their account. But guess what – the more you deposit is the more chances you have of winning. Each quarter in 2017, a lucky VMBS Member has been made into millionaire. And with one more quarter left in the year, the promotion has been upgraded allowing us to select two winners on January 19, 2018. This means that not one but two of our Members will be millionaires in 2018!

Visit a VMBS Branch today! Tel: 754-VMBS (8627) Email: askvmbs@vmbs.com


THIS IS YOUR VICTORIA MUTUAL Victoria Mutual has grown from a building society that only offered savings and mortgages to a Strong Integrated Financial Group that also offers Pensions Management, Investments, Corporate Finance, Property Services and Money Transfer.

THE VICTORIA MUTUAL BUILDING SOCIETY AND ITS SUBSIDIARIES/AFFILIATES



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