By Seth KRAMPAH & Joseph AKOSSEY
On Monday, May 27 we discussed how good leadership has improved the fortunes of some rural banks
Specifically, we examined three CEOs who have positively and remarkably improved the performance of their respective banks thereby creating superior value for key stakeholder.
The part three will consider two CEOs who have also demonstrated that good leadership can have a transformative impact on organization, driving success and growth.
The first rural bank we want to bring to the fore is Fiaseman Rural Bank PLC in the Western Region headquartered at Bogoso. The bank’s CEO is Dr. Godfred Frank Opoku who assumed this top position on 30th September 2021.
Dr. Opoku is a seasoned and dynamic banker who has a strong conviction that innovation and strategic transformation are key to achieving success in the current competitive and violative banking landscape.
Indeed, Dr. Opoku’s good leadership and transformation agenda have translated into robust financial performance and high recognition of the Fiaseman Rural Bank brand.
Here is a summary of his remarkable transformational achievements.
First of all, the bank’s profit improved substantially from GH₵ 9.8 million in 2021 to GH₵ 36.9 million in December 2023 marking an incredible growth of 275.15%.
The growth in profitability was driven among other things by astronomical increased in total operating income from 66.8 million in 2022 financial year to 120 million representing almost 100% growth.
The profit recorded was the highest in the history of the bank as well as the rural banking industry.
Deposit also ballooned from GH₵ 189.7 million in 2021 to GH₵ 465.6 million in 2023 representing appreciable percentage growth of 145.24 million while total assets grew from GH₵ 226.2 million to GH₵ 536.6 million at the same period. This constitutes astronomical percentage growth of 137.20%.
The asset base of the bank position it as the second largest rural bank in Ghana.
Dr. Opoku’s transformation of Fiaseman Rural Bank has not only been about growth in financial performance but also in other key non-financial performance drivers. For example, he has transformed the marketing unit into a full department with dedicated resources and support to drive the marketing efforts of the bank such as promoting customer centric culture and enhancing the brand identity and image.
He has further revamped the IT unit and made it a department recognizing the importance of leveraging technology to provide seamless and real time banking solutions to delight both existing and prospective customers.
Dr. Opoku appreciates the indispensable role of Mobile Bankers in driving sales. He has therefore improved their condition of service and this has translated into amazing growth in susu deposit mobilization. For example, the bank recorded a total susu deposit of GH₵ 148.2 million in 2023.
This is the second highest in the sector and more than the total deposits of quite a number of rural banks. Under his leadership, the bank has also introduced a ground breaking credit product branded as smart loan targeted at the SMEs customer segments.
This innovative product has helped a considerable number of SMEs beneficiaries to grow and expand their business and has helped the bank to improve its interest income.
Commenting on his achievement, Dr. Opoku attributed his success to the support of the board and commitment of the entire staff of Fiaseman Rural Bank PLC.
Another rural bank we want to bring to the spotlight is Kwahu Praso Rural Bank in the Eastern Region. The bank CEO is Mrs. Lucy Opoku Arthur who took the mantle of this top position on 1st September,2014.
Mrs. Opoku Arthur is a chartered Banker with over two decades of banking experience. She can be described as one of the most capable CEOs in the rural banking landscape with outstanding leadership qualities such as humility, visionary, effective communication skills, approachable but firm.
No wonder his leadership has positively and fantastically transformed Kwahu Praso Rural Bank PLC.
Here is an encapsulation of how she has been able to transform the fortunes of the bank.
To begin with, through prudent management, profit has increased significantly from GH₵31,503.00 in 2014 to GH₵3.1 million in 2014 representing a percentage growth of 9609%
The bank customers deposit also ballooned from GH₵4.1 million in 2014 to GH₵43.4 million in 2023 marking an impressive growth of 937%
Similarly, under her leadership total assets have jumped from GH₵5.1 million to GH₵52.9 million in the same period. This amount to a percentage growth of 922%
The impressive growth in deposit and total assets could be attributed to renew confidence of the bank cherished customers in the brand and innovative deposit mobilization strategy rolled out by Mrs. Opoku-Arthur. It is significant to state that apart from impressive financial performance, Lucy has done well in other areas.
For example, with support of the board and management she has been able to open additional for branches. Two of the new branches are in Ashanti Region (Konongo and Ejisu).
The market development strategy through new branch opening has helped to deepen financial inclusion and empowered women by means of the bank vibrant microfinance scheme.
Furthermore, Lucy has built performance driven culture in the bank whereby every staff is poised to deliver results and not only interested in monthly pay check. Little wonder that the bank performance has improved fantastically under her leadership.
It is heartwarming to say that since 2020, the bank has been ranked as strong and ranked first for two consecutive times by the Efficiency Monitoring unit of the ARB Apex Bank PLC. According to Lucy, prior to her appointment, the bank was in satisfactory position.
In addition, through her excellent performance she has won some awards thereby improving the bank brand image and identity. The most outstanding among them was the prestigious Ghana Club 100 award conferred to the bank by the Ghana investment promotion Centre in 2023.
The bank was placed 40th position and ranked as number one (1) in the rural banking sector. It is refreshing to mention that Kwahu Praso Rural Bank outwit well known dominant rural banks that were part of the 2023 club 100 awards.
Commenting on her achievements and positive impact on the bank performance, she humbly acknowledges the support of the board, management and the entire staff.
Conclusion
It has been realized that robust leadership has actually transformed the fortunes of Fiaseman Rural Bank and Kwahu Praso Rural Bank.
It is therefore incumbent upon all RCBs to continue to strengthen leadership at the board level as well as management level. In this way, the sector will remain robust, resilient, profitable and sustainable. We want to conclude the article by quoting what the renowned leadership expert, John G. Maxwell said “Everything rise and fall on leadership”.
