[ 2016-11-23 ]

Rural banks advised to embrace technology in banking
Technological advancement and the use of internet
has become very indispensable in the present day
banking environment.

It is therefore in this regard that rural and
community banks have been encouraged to embrace
technology in banking so as to attract and retain
clients as most of them are technologically
knowledgeable and therefore must begin to invest
in e-banking products, such as Automatic Teller
Machines (ATMs), electronic payment cards among
others.

However, directors and managers of rural and
community banks have been cautioned on the
deployment of electronic banking products with the
best risk-mitigating measures in deploying these
electronic products and have further been urged to
do so with the maximum security to avoid losses
that can occur through security lapses.

The National President of the Association of Rural
Banks, Dr Nana Akowuah Boamah gave the advise at
the 19th Biennial General Meeting of rural banks
held last Friday on the theme ‘Forty years of
Rural Banking-Achievements, Challenges and
Prospects'.

According to him, Rural and Community Banks have
contributed significantly to the development of
Ghana over the past forty (40) years in spite of
the numerous challenges posed by the economy. The
industry currently employs about 4000 people, most
of who are in rural communities.

In the area of education, the industry has not
only constructed classrooms and science
laboratories, but has also provided computers to
schools and awarded scholarships to brilliant but
needy students in their operational territories

Rural and Community Banks have also supported
financial literacy development in communities
through the organization of road shows and radio
and television discussions as well as supporting
such national events as Farmers’ Day and best
teacher awards among others.

The aforementioned contributions of rural banks
have not gone unnoticed by both national and
international bodies and institutions. At the
latest prestigious Ghana Club 100 awards,
twenty-two rural and community banks were in the
top 100 Companies in Ghana.

However the industry has been confronted with some
major challenges which include weak corporate
governance, competition from micro finance and
savings and loans companies, liquidity, and
mismanagement. Member banks have therefore been
encouraged to implement requisite strategies to
address these challenges by supporting one another
in these times of difficulty.

The National President reiterated that the
destinies of all individual banks are linked and
this regard, the Association is designing measures
to shore up the performance of member banks.

Source - Business & Financial Times

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