Publish interest rates on savings and loans of RCBs-Akossey advises ARB Apex Bank
As innovation continues to drive competition within the universal banking industry, a rural banking expert, Mr. Joseph Akossey, has urged the ARB Apex bank to modernize its operations to periodically make public the interest rates on savings and loans of rural and community banks (RCBs), as part of attempts to streamline the rural banking industry.
According to Mr. Akossey, “this will help current and potential customers, to make aninformed decision as to where to get cheaper loans and high interest on savings.”
He explained that some rural banks charge lower interest on their loan products than some specialized deposit taking institutions. Hence, this publication will among others make such RCBs competitive by attracting more customers.
He believes this will compel RCBs which are charging higher interest on loans and low interest on savings products to make review their charges, accordingly.
Currently, the Bank of Ghanapublishes amonthly report oninterest rates of universal banks and this helps the banking public to make informed choices by getting value for money.
The Head of Proven Trusted Solutions who made these remarks in an interview during a day’s training workshop for mobile bankers of Amanano Rural Bank, in Kumasi, also advised RCBs to innovate their micro finance products to satisfy their customers.
“The micro finance clients are normally seen to be risky and unprofitable. This has caused them to be marginalized by the major banks. Therefore, RCBs should target this uncontested market.”
Furthermore, he said: “In order to ensure thesuccess of micro finance new product development RCBS should undertake marketing research to identify the needs and wants of the targeted customers so as to tailor the products to their needs.”
While doing this, he added that there should also be intensive marketing communication to speed up the adoption process.
He mentioned the need to segment micro finance clients so as to come out with varied products to suit each segment.
The training workshop was focused on “effective deposit mobilization and customer retention strategies for mobile bankers.”
He said “RCBs should provide regularly training for their mobile bankers so as to improve their capacity. Mobile Bankers of RCBs are the face of their institutions. Therefore,they reflect the image of RCBs.”
Ang given the increasing competition mobile bankers of RCBs faces from their counterparts with other financial institutions, regular training, he underscored, will help them to upgrade their knowledge and skills thereby making them gain the competitive urge.
The General Manager of Amanano Rural Bank, Mr. Noble Christian Osei-Bonsu, also urged the mobile bankers to work hard to grow the bank’s deposit and other indicators.