Microfin Rural Bank targets aggressive digitisation for growth


Microfin Rural Bank (MRB) is currently working with a Fintech to roll out innovative cashless products and services while deepening its technological platforms as part of the shift toward aggressive digitisation.

The bank currently operates a fully electronic loan management system, which has significantly reduced the turnaround time for loan appraisals, approvals and disbursements.

According to the bank’s board chairman, Kwabena Owusu-Mensah, these interventions form part of the bank’s strategy to strengthen its operational resilience and ensure business continuity in the face of numerous threats posed by the coronavirus pandemic to the rural banking sector.

“The bank is committed to leveraging technology to promote operational efficiency and enhance financial inclusion.

“MRB has established partnerships with key organisations on that course, aimed at alleviating rural poverty through the delivery of appropriate and innovative financial products and services to improve livelihoods in rural communities while providing the needed financial services to clients,” he said at MRB’s seventh annual general meeting in Gomoa Pomadze.

Mr. Owusu-Mensah further stated that RCBs are facing unparalleled risks and challenges due to disruptions in economic activities as a result of the pandemic; it has taken multiple measures to support employees and clientele as well as help to strengthen the rural banking environment.

The bank posted a profit of GH¢168,308 for the 2019 operational year, which was a negative growth of 64.72 percent when compared to the GH¢477,006 that was recorded in the previous year.

Total assets moved up to GH¢11.2million in the year under review, representing a 12.6 percent growth over the 2018 figure of 9.9million; while its stated capital grew from GH¢1.09million to GH¢1.12million for the same period.

MRB also recorded a 11.87 percent growth in loans and advances, from GH¢5.01million to GH¢5.60million, and a 15.88percent increase in deposits from GH¢6.6million to GH¢7.6million for the period under review.

One of the bank’s directors, Ishmael Kwesi Otchere, has stepped down; having served as a founder and executive director of the bank since its inception.

“I am very confident of the team that has been groomed to take over should the current leadership retire. The bank has a very resilient team of directors who can still drive the social and economic aspirations of the bank, its clientele and the community at large,” Mr. Otchere said.

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