“Collaborate to make rural banking industry more competitive” – association of RCBs CEOs told

The formation and inauguration of the Association of Rural and Community Banks (RCBs) Chief Executive Officers (CEOs) has been widely lauded, and the platform urged to be used to contribute to building a more formidable rural banking industry.

The Executive Director of the Association of Rural Banks, Ghana (ARB), Mrs. Comfort Owusu, while recognising the existence of existing associations within the rural banking set-up, said there is need to leverage unity to remain competitive and relevant.

This, she observed, should be the case, especially at the back of the “ever-changing dynamics of the marketplace” to achieve a stellar business performance.

“Coming together allows us to brainstorm and strategise about key issues that will benefit us collectively; and also to interchange ideas, share experiences, strategies, success stories, among others,” she stressed.

“This helps us to get a new perspective of doing things together, and also aids us to replicate best practices of our sister banks; and in so doing benefit from benchmarking which is key to remaining competitive and achieving excellent results,” she added.

Mrs. Owusu, who was speaking at the maiden Annual General Meeting (AGM) and inauguration of the newly elected executives of the Association of RCBs CEOs, further advised them to use the platform to come out with collaborative strategies that will be more beneficial, while eschewing unfair competition.

The formation of the association, she emphasised, should be used to push the frontiers of the rural banking industry, and not to rival any existing association with the rural banking sub-sector.

Similarly, the Managing Director of ARB Apex Bank PLC, Mr. Alex Awuah, acknowledged that the creation of the Association of RCB’s CEOs will help to mobilise the leaders in the rural banking industry at any given time to take certain critical decisions that matter to the industry.

Against this background, he indicated the readiness of the ARB Apex Bank to support the work of the association.

However, he advised that the association should be made complementary to existing structures within the industry “so that it doesn’t create rival positions within the industry”.

“With your support, we can build a very formidable institution that will be alive to the needs of the Ghanaian public because we are there to offer financial intermediation services to the masses,” he said.

Compared to the universal banks, he observed that RCBs are at every nook and cranny of the country and therefore, to democratise financial services delivery to every Ghanaian will depend on the work of RCBs working together with a common purpose.

This, he believes, will contribute significantly to realise the financial inclusion agenda of the state.

Furthermore, he asked the CEOs to be abreast with the economic situation, regulatory and governance issues “to enable us shape our banks better”. He also encouraged the constant improvement of knowledge, as well as leadership qualities to help meet the demands of contemporary RCBs management.

To this end, he said it is a key pillar of his administration to support any policy intervention within the ARB Apex Bank toward the personal and professional career development of RCB CEOs.

Among others, he announced the setting up of a dedicated Strategic Business Unit as part of the newly approved 4-year strategic plan of the ARB Apex Bank toward ensuring the effective management of distressed RCBs.

“The unit will be dedicated to troubleshooting our challenged RCBs, and profiling them for effective and pragmatic remedial actions to bring them back to their feet.”

The first elected President of the Association of RCBs CEOs, who is also the CEO of Bessfa Rural Bank Limited in the Garu District of the Upper East Region, Alhaji Hayatudeen Awudu Ibrahim, speaking in an interview on the side-lines of the maiden AGM, said the association presents an opportunity to become one of the leading forces backing the growth of RCBs in the country.

Source: B&FT