President & CEO (Scotiabank)

As you are well aware, the first things that an investor looks for prior to investing in a foreign country are a trustworthy lawyer, insurance company and bank. What does the Jamaican financial system offer to assure investors that they are coming into a country with a solid financial system?

Jamaica’s financial industry has well-capitalized players with strong risk management infrastructure.  Since the mid-90s the Government has made significant efforts to tighten the regulatory framework and introduce greater scrutiny, oversight and regulations to strengthen the financial sector.  As a result of this, the industry was able to manage through the 2008 financial crisis when a lot of other countries ran into trouble. The Government is implementing additional reforms to further strengthen the supervisory framework, particularly to facilitate consolidated supervision of financial conglomerates. Scotiabank itself has successful and continuously operated in Jamaica for over 125 years, a solid track record in any market. 

Jamaica, as well as other countries in the region, is working to promote and attract foreign investment.What would you say are Jamaica’s competitive advantages compared to other countries in the region?

Jamaica has a base of 2.7 million English-speaking people that are culturally aligned with the US, Canada and the UK. Jamaica’s human capital is a diverse blend of highly skilled professionals, well-trained and trainable employees. Jamaica also has a world-class telecoms network in terms of capacity and reliability.  We also have a great advantage in terms of location. Jamaica is strategically positioned, facilitating easy travel to and from the US with two international airports. Miami is a short flight of an hour and a half or less and most major North American gateways can be reached in less than 4 hours. 

In terms of the business climate and the ease of doing business, we have seen an improvement in those rankings due to various initiatives and reforms that were implemented by the government particularly in the last 2-3 years. The most recent 2014 Forbes Best Countries for Business Report, rated Jamaica as 64th out of 146 nations; making Jamaica the best country in the Caribbean region to do business, and third in Latin America and the Caribbean.

Because of the talent available in and the location of Jamaica in the Caribbean, Scotiabank has introduced a number of strategic initiatives to support the region here.  Our regional retail sales management, our largest Caribbean contact centre and a number of other shared services are based here in Jamaica.  

While planning for a secure and prosperous future, Jamaica has some challenges to face, for instance, its debt to GDP ratio is around 140%. What measures have to be implemented in order not to repeat the same mistakes?

The Government’s Economic Program, developed in conjunction with the International Monetary Fund includes a number of reforms focused on a reduction in the Government’s expenditure.  The Government recognized that it is imperative that we reduce the debt.  There is now a fiscal rule that clearly defines the expenditure process, puts limits in place and creates a disciplined budgeting process.  When this year’s budget was tabled in February, both the expenses and the revenues were presented at the same time; compared to previous years where the expenditure budget would have been tabled in April or May. So there’s a lot more discipline around the fiscal side, and once we maintain this trajectory we will be in a stronger position in the future.

How is your group contributing to the growth and development of the local economy?

Scotiabank has been in Jamaica 125 years and we believe that when Jamaica prospers, we prosper. Scotiabank offers retail, commercial, small business, corporate and private banking services.  We are a full financial group and in addition to banking, we also offer microfinance/micro-lending, life insurance, investments and funds management creating opportunities at multiple levels.

Firstly, Scotiabank plays a critical role in harnessing funds via deposits and then providing financing to the private sector entities for business growth. We have 35% market share of the lending market here in Jamaica and we lend across the spectrum:  from micro entrepreneurs right up to the large corporates.  We provide financing through traditional commercial bank lending as well as through structured products in the capital markets. We also provide funding to retail individuals including car loans, mortgages etc.

I should also mention particularly on the small business side, we don’t only lend money but we have also taken a very proactive role in the last few years in helping to build the capacity of small and medium enterprises. We found that many small companies do not have adequate infrastructure in place for accounting and financial reporting, business and marketing planning or risk management.  In response to that need, we developed a programme to fund seminars and coaching clinics for our small business customers, and we provide them with tools such as a business plan writer, cash flow calculators, and technical assistance.  This has been a tremendous effort on our part as we work with the small business industry to not only provide lending but also to assist them  in building their capacity to more effectively run their businesses.  At Scotiabank we recognize that small businesses really are a critical part of the engine of growth for Jamaica and therefore it has been an important area of focus for us.

We also take corporate social responsibility very seriously. Our Scotia Foundation focuses on youth development through our Bright Futures programme and we pay particular attention to health, education and sports as we recognize that the future of Jamaica is reliant on the next generation.  Major initiatives include our Shining Star Scholarships Program with over 100 students currently receiving secondary school scholarships and bursaries to tertiary institutions; support through purchasing of equipment and fundraising efforts for hospitals; and our Kiddy Cricket, Prep School Cricket and U13 &U16 Jamaica Netball programmes that provide skills training to coaches and students while instilling the tenants of discipline and team work.

We also have a very strong volunteer core among our staff members. We have more than 2,400 staff members and over 1,000 of them are registered volunteers.  They adopt charities in their communities and assist in any way; whether it’s fundraising activities or going to build a wing of a school or simply helping children with their homework.  Our strong volunteer culture has had a very positive impact on the communities in which we operate, and our customers know that we contribute to Jamaica’s economic growth and development in many tangible ways.

What are Scotiabank’s competitive advantages compared to other players in the sector?

We have a tremendous history in Jamaica – over 125 years. Scotiabank was established in Nova Scotia, Canada and, because of maritime trade linkages, a branch of Scotiabank was established in Kingston, even before branches were opened in Toronto! And over the past 125 years, Scotiabank has been through the Great Depression, economic downturns, natural disasters, political instability, and much more.  We have stood tall through all of these because of our strong risk management and compliance culture and our focus on meeting customer needs.  We have stood the test of time.  In the mid-90s when we had a financial sector crisis in Jamaica, Scotiabank required no support from the government.  In fact, during that time, Scotiabank grew significantly due to ‘flight to quality’ and our reputation remains one of being safe and secure. We bring a deep understanding of the Jamaican market, and a track record of commitment to working with business customers to help meet their objectives.

At the same time, we are part of an international bank. Scotiabank operates in more than 55 countries around the world, and we have the skills and expertise needed to help meet the needs of our customers. We are connected to many other jurisdictions and so our customers can come to us and say “I want to start a business in Haiti, who do I contact? Who are the best people to connect with? ” We also have a very strong, skilled and experienced team and that has also been one of our advantages over the years. We have invested a lot in our people and it shows in the quality of what we do and our ability to execute.

Motivation and investor interest could be crucial to bring plenitude and prosperity back to Jamaica. How does the group promote foreign investor interest?

We have consistently assisted the Government of Jamaica both through an advisory model and support of initiatives related to enhancing foreign investor support.  Most recently we sponsored JAMPRO’s Investment Forum in Montego Bay. Our involvement was not only via funding; we also shared what our experience as an international investor in Jamaica for 125 years has been like with the over 120 foreign investors that flew in for the conference. We discussed our investment here, the opportunities that exist in Jamaica and the potential to make strong returns.  We use our own experience to try to encourage international investors and we support various government agencies and private sector initiatives that highlight Jamaica as an ideal business location.  Of course we are also trying to grow our business here and to see how best we can leverage our assets, which are mainly our team, deep relationships with our customers and centres of excellence. We have, for instance, a contact centre that provides services to 18 countries in the Caribbean.  Going forward we would like to leverage on that infrastructure and expand our services.   Scotiabank is open for business, ready and willing to provide financial assistance and advice where we can and also to help investors make the connections because we know the key players.

Can you give the readers of Harvard Business Review an example of your success with a foreign investor?

An example of Scotiabank’s success is with an international contractor with 50 overseas branches and offices in over 80 countries worldwide.  Our Scotiabank offices in Jamaica, Toronto and the Asia-Pacific region worked together with this company to provide comprehensive banking solutions to carry out major infrastructure initiatives. These included a US$65.4 million engineering development in Kingston; a US$400 million contract for island-wide road repairs and maintenance, and a US$600 million 50-mile highway development project.   

You started your career in the financial sector when you were quite young.  What advice would you give to a student or graduate who is considering a career in the financial sector?

It’s an exciting and very fulfilling sector.  We provide solutions to help individuals and companies become financially better off. It’s a very fulfilling experience when you are able to help an individual or small company to achieve their goals and can see them grow over the years. I would also say that the industry is going through a lot of change, which is very challenging and exciting at the same time. I would encourage young people who are interested in this sector to definitely go for it.  I’ve been in this sector for 24 years now and have enjoyed it thoroughly.

You are no doubt a role model for future leaders in Jamaica’s finance industry. What management lessons have you learned over the years that you put into practice every day?

Being solutions oriented and forward thinking has worked well for me over the years. So when there’s a problem I am less interested in whose fault it was, or what went wrong, but to focus instead on how we can fix the problem, assigning responsibilities for resolution and ensuring that we prevent the same mistake from happening again. I would also say that just focusing on excellence and doing everything to the best of your ability.  I often say “never settle for mediocrity with anything you’re doing. Just go for the best and do it the best way you can.”

Another important quality of leadership I have learnt over the years is the need to understand your colleagues and team members.  Every team member brings different strengths to the table. It’s important to understand their different perspectives, what has shaped how they think and what motivates them, and then playing to those strengths and motivations.  I believe it’s important to understand and build on the strengths of your team and know how to leverage them to come up with the best ideas and solutions.

What can the readers of Harvard Business Review expect from Scotiabank in the near future in Jamaica?

In the long term, one area of focus for Scotiabank is to improve how we deliver services to our customers. We are a very cash intensive society, which is not only costly, but carries an element of risk.  We would like to see a real push not only by Scotiabank but by the industry to move towards greater use of electronic means of payments and digital solutions. We will have to focus on educating our customers about alternate channels and creating new ones that will allow them to have greater access to banking services more conveniently. We also want to continue to innovate on the lending, investment and insurance business lines to provide a wider range of products that can meet the evolving needs of our customers.  Our focus is enhancing our value proposition with relevant solutions and making it easier for customers to bank with us.

What message would you like to send to Harvard Business Review’s leaders?

Welcome to Jamaica! While Jamaica, like all countries, has its challenges, I feel we are on the right track in addressing those challenges. The Government has made significant gains on several fronts in terms of fiscal management, inflation, exchange rate competitiveness, and general macroeconomic stability.  Opportunities now exist in tourism, agriculture, logistics and the BPO industries, and so I would invite our HBR readers to come, visit and explore these opportunities that can yield positive returns.  Plus, there is the added benefit of being in one of the world’s cultural hotspots; the country that has given you great cuisine, great art and music, great athletes and great people!