The Capital Rural Bank Limited at Abesim near Sunyani has stepped up efforts to expand its market share to consolidate growth.
“The bank had adopted many strategies to help expand our market share, key among them are increase in micro enterprises’ loan portfolio and intensive sensitization of micro business operators on basic but efficient financial and business management principles,” Mr. Stephen Yaw Adu-Yeboah, General Manager of Capital Rural Bank, has said.
Capital Rural Bank, he noted, is committed to reviving the local economy through enhanced microfinance scheme. Last year the bank disbursed GH¢800,000 to micro businesses; it is expected to give out GH¢1million in 2018, hoping that it will further scale up to GH¢1.5million in 2019. Currently, the bank has about 800,000 micro business operators on its list.
He underscored the need for continuous education of its clients to better understand how to put loans into judicious use. This, he noted, has informed the bank’s vigorous customer education to propel them to succeed. “Micro businesses are pivotal to the economy of our catchment area and therefore the bank will do well to leverage it to expand our market share.”
The General Manager was speaking to B&FT on the sidelines of financial and business management sensitization training in Sunyani for micro business operators. The training which was third in series was organized by the Microfinance Department of Capital Rural Bank.
The Internal Auditor of Capital Rural Bank, Francis Sarfo Kwarteng, observed that most micro businesses fail largely because of mismanagement of finance and business activities. He said they [micro business operators] are unable to decouple business capital from personal savings, thus contributing to misappropriation of loans.
The situation, he indicated, has fuelled the alarming rate of nonperforming loans (NPLs)-a colossal challenge in the banking space. This rising incidence of NPLs, non-attractiveness of government treasury bills and unhealthy competition put rural banking in a difficult situation and therefore Capital Rural Bank has adopted relationship banking. “We build fruitful relationship with our clients, understand the dynamics of their businesses, and help them to build on their operations by giving them loans that will not suffocate them,” he added.
Mr. Kwarteng advised micro businesses to embrace creativity and innovation into their activities to give them competitive edge, adding “packaging is very critical to retain as well as attract new customers.”