Rural Community Banks challenged to embrace ICT intervention

19-12-2011             

Participants at the 5th  AGM

A long service worker receiving his award

Narration: The Managing Director of ARB Apex Bank, Eric Osei Bonsu has challenged Rural Community Banks (RCBS) across the country to double up efforts by way of organizational and operational restructuring to enable them meet the challenges of the changing competitive business environment. In view of this, RCBs should migrate from manual operation to embracing Information and Communication Technology (ICT) interventions, deposit mobilization and credit administration as well as cost control and reduction. In a speech read for him at the 5^th Annual General Meeting of the East Mamprusi Community Bank at Gambaga in the Northern Region, Mr. Osei-Bonsu also emphasized the need for RCBs to create additional desks in the rural banking sector to cater for Micro Finance, Internal Audit and Research and Marketing as well as Administration to help give impetus and further strengthen the rural banking system. Isaac Asare was at the meeting and has more for Radio Ghana.

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Report

The East Mamprusi Rural Bank began operations in September, 1997 at Gambaga, where the headquarters is strategically located. With a vision to be the leading rural bank and the centre of excellence for the delivery of efficient and effective micro finance services, the bank had chalked tremendous gains and has through dint of hard work established ultra modern banking premises in Nalerigu and Bunkpurugu to cater for people in the East Mamprusi and the Bunkpurugu Yunyoo Districts. The bank also has plans of putting up agencies in strategic locations of Mamprugu. The Board Chairman of the Bank, Mr. Dan Akolbilla said the performance of bank in the year under review was quite appreciable though the bank is confronted with challenges in terms of loan recovery especially in the area of farming and construction loans. During the 2010 financial year, the bank disbursed to its numerous clients in the catchment area, an amount of GHc 489,300 as loans and advances. It performance in terms of deposit also amounted to GHc2,869,091 in 2010 as against GHc 1,992,677 in 2009, recording an increase of 44 percent. Touching on the bank’s social responsibilities, Mr. Akolbilla disclosed that the bank had so far spent GHc13, 351 in support of the poor and the needy in the community and stressed that the bank would continue to demonstrate its commitment in that direction. The major challenge according to him was failure by defaulters to honour their loan obligations. This, he said had to some extent slowed the bank’s pace of development and called on defaulters to settle their indebtedness to avoid any court action. He said as a way forward the bank has initiated an action to employ the services of Agric Extension Agents and village Animators to retrieve some of overdue loans on commission basis. Mr. Akolbilla thanked its shareholders for their contribution to the success of the bank. He also extend the bank’s gratitude to the DCE, the District assembly and the Overlord of the Mamprugu Traditional Area for availing to the bank, the old Magistrate court building to reconstruct an ultra modern Banking facility in Nalerigu. Speaking on behalf of the Managing Director of the ARB APEX Bank, The Bolgatanga branch Manager, Success Aduamah stressed  the urgency  for RCBs to prioritize the provision of quality customer service, which according to him is vital for their growth and survival. The District Chief Executive, Imoro Adam congratulated the board of directors, management and staff of the bank for their collective role in ensuring the success of the bank. The DCE said government recognizing the role of rural banking institutions hopes to create an enabling banking environment for business to flourish. He therefore encouraged all rural and community to complement governments efforts by coming out with more innovative products that will contribute positively in promoting the growth of the economy. Speaking on behalf of the Nayiri, the Tarana, John Wuni Grumah, acknowledged the contribution of the bank and encouraged people to support the bank in all endeavours to be able to perform creditably. Four categories of awards were presented to deserving staff, micro-finance groups, individuals and long service workers for their effort and contribution to the success of the bank. 

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