According to the world bank, financial inclusion means individuals and businesses have access to useful and affordable financial products and services that meet their needs in responsible and sustainable way. The bank further emphasized the fact that, access to transaction account is a first step toward broader financial inclusion since it allows people to save money, send and receive.
Empirical data has revealed that financial inclusion is a key enabler to reducing poverty and boosting prosperity among others.
In view of the crucial role that financial inclusion plays in the lives of people, the government of Ghana developed and implemented the National Financial Inclusion and Development Strategy aims at increasing financial inclusion from 58% to 85% by 2023.
It is significant to note that, the rural banking industry remain one of the key pillars of financial inclusion in Ghana. As at December 2022, total RCBs customers stood at 8,211,374 representing 25.6% of Ghana population. Further, the sector currently has 147 players with about 900 branch networks across the country.
Some of the branches are located in some of the remotest parts of the country where no other financial service providers can be found (source: Bank of Ghana ,14th October 22)
So far, the write up has touched on the meaning of financial inclusion and the government policy regarding financial inclusion. However, the focus will be on how the RCBs are using the susu product to deepen financial inclusion.
Susu savings is one of the deposit products found in the deposit mix of majority of rural banks. It has a complementary product which is the susu loan.
The susu is being driven by Mobile Bankers (Sales Executives). They usually walk breadth and length in the cities, towns and villages with a view to collecting cash deposit from customers on daily basis.
It is important to note that as a result of the susu, formerly excluded and underserved poor customers have been brought to the formal financial system. Business owners who for one reason or the other cannot walk into the banking halls to make savings are also benefitting from the susu which is deemed to offer convenience and hustle free.
At this point, the article will focus on selected rural banks that are aggressively deepening financial inclusion in Ghana through susu.
Atwima Kwanwom Rural Bank recognized as one of the dominant and vibrant rural banks in Ghana is performing exceedingly well in deepening financial inclusion through susu.
The Bank total customers as of December 2023 stood at 279,622 and out of the number 116,040 are susu customers representing 41.50%. Through the susu product, the bank has inculcated savings culture in small businesses, artisans and many others.
AKRB is also using the susu loan to aid businesses grow and expand.
According to management led by the CEO, Mr. Samuel Bonsu Sekyere, the bank will continue to demonstrate steadfast dedication to prioritizing financial inclusion through susu.
Juaben Rural Bank which is also one of the vibrant rural bank is also exceling in championing financial inclusion through susu.
The bank has 92,885 susu customers as of December 2023 representing 43.40% of total customer base of 215,301.
According to management of the bank, through the susu product they have been able to empower the underserved and unserved segments in the bank catchment area.
Mr. Augustine Awere Damoah who is the CEO of the bank, emphasized that, it is a strategic priority of the bank to support the government financial inclusion agenda through the susu product. The Human Resource manager of the bank, Mr. Victor also asserted that Mobile Bankers are precious asset in driving financial inclusion and therefore must be motivated.
Okomfo Anokye Rural Bank headquartered in Wiamoase in the Ashanti Region cannot be ruled out when it comes to driving financial inclusion through susu.
The bank currently has well – trained and motivated Retail Bankers who are well-positioned to sell the susu product with a view to promoting financial inclusion. Some of the Retail Bankers have motor-bikes that aid them to travel to remote locations in the bank catchment areas to collect susu deposit. In this way, they have been able to make formal financial services available to many people as possible.
Amenfiman Rural Bank noted as the largest rural bank in Ghana is doing fantastic in deepening financial inclusion by means of susu.
The bank currently has 161 well trained and motivated Susu Sales Executives with the responsibility of driving the susu product across its 19 branches.
The bank close the year 2024 financial year with a total susu deposit of GH 171.9 million. Indeed, the bank is using susu product to inculcate savings culture in people who hitherto did not have access to formal financial system.
| NAME OF RCB | TOTAL DEPOSIT
DEC 2023 GH₵ |
SUSU DEPOSIT
DEC 2023 GH₵ |
TOTAL NUMBER OF CUSTOMERS | TOTAL NUMBER OF SUSU CUSTOMERS | % OF SUSU CUSTOMERS TO TOTAL CUSTOMERS |
| Ahafo Ano Premiere | 101,564,941 | 38,386,029 | 101,559 | 63,570 | 62.59% |
| Nyakrom Rural Bank | 91,335,411 | 28,393,517 | 80,663 | 56,373 | 69.37% |
| Amansie Rural Bank | 332,993,874 | 70,917,631 | 100,910 | 49,257 | 48.81% |
| Juaben Rural Bank | 241,522,462 | 57,872,853 | 215,301 | 92,885 | 43.14% |
| Fiaseman Rural Bank | 465,189,588 | 148,259,982 | 165,949 | 87,697 | 52.48% |
| Amenfiman Rural Bank | 768,734,987.98 | 171,787,556 | — | 78,813 | — |
| Atwima Kwanwoma | 376,935,012 | 109,741,000 | 279,622 | 116,040 | 41.50% |
| Capital Rural Bank | 37,201,595 | 15,369,663 | 22,937 | 12,669 | 55.23% |
| Ahantaman Rural Bank | 253,140,748.58 | 30,877,008.04 | 214,183 | 103,523 | 48.33% |
| Okomfo Anokye Rural Bank | 161,447,145.51 | 54,401,610.41 | 83,741 | 50,416 | 60.20% |
| Asokore Mampong Rural Bank | 28,026,512.88 | 14,529,955.21 | 15,032 | 13,017 | 86.59% |
| Otuasekan Rural Bank | 192,008,924.43 | 66,453,668.35 | 112,603 | 54,139 | 48.07% |
| Nsoatreman Rural Bank | 51,848,380 | 21,069,132 | 80,391 | 60,074 | 74.72% |
From the table above, it is clearly seen that susu clients constitute a large chunk of the clientele base of several RCBs. Most of these clients have been marginalized by the universal banks where focus is on high net worth and corporate clients.
Indeed, the rural banking industry is having a significant positive impact on the lives of the grassroots of the financial ecosystem.
Conclusion
The rural banking sector is playing a crucial role in deepening financial inclusion in Ghana through establishment of branches in rural communities and marketing of susu product to the unserved and undeserved segments of the population.
Government and key stakeholders should support the sector to grow and thrive.
The RCBs should strengthen their susu operations since is a cash cow.
Further, Mobile Bankers must be well – positioned through better condition of services and capacity building in order to grow susu deposit mobilisation.
