MD of ARB Apex Bank optimistic of RCBs closing financial intermediation gap through technology growth

The Managing Director of the ARB Apex Bank has bemoaned the failure of the banking sector, particularly operators of rural community banks (RCBs) to fully bridge the rural financial intermediation gap. Mr. Alex Kwasi Awuah while lamenting over the delay in bridging the gap, attributed the situation to the failure of the banking sector to fully embrace and integrate the tools needed to help it bridge the yawning gap between those who have access to financial services and the unbanked population. The MD made the remarks during a two-day event of the 21st Annual CEOs Conference of the ARB Apex Bank held between Friday, October 14th and Saturday, October 15th, 2022 at Ho, the Volta Regional capital which brought together top management of the Apex Bank, the Bank of Ghana and other related financial institutions. The conference was held on the theme: “Positioning Rural Banking at the Center of Financial Services Delivery in Ghana – the Role of Stakeholders.” The Bank of Ghana, as part of efforts to bridge the rural financial intermediation gap, established the first Rural and Community Bank (RCB) at Nyakrom in the Central Region in 1976. 46 years on, however, this vision is yet to be realized. “Firstly, the Bank of Ghana Rural Banking concept with the establishment of the first RCB at Nyakrom in the Central Region in 1976 with the view to bridging the rural financial intermediation gap. However, almost fifty years down the line, the gap remains palpable, on the one hand, due to no fault of the rural banks, but on the other because we have not fully embraced and integrated the tools needed to help us bridge the yawning gap between those who have access to financial services and the unbanked population,” said the MD. He however expressed optimism that the advent of digitalization and the growth in financial technology would serve as the catalyst for the banks to fully embrace the digital revolution by deploying the right products and services to fill the yawning gap in the RCBs’ sub-sector through digital solutions such as Agency Banking, Mobile Banking, and the soon to be implemented Internet Banking Project. Underscoring the relevance of the theme of the event, Mr. Alex Kwasi Awuah explained that “As the nation and the entire world begins to weather the storm beyond the COVID-19 pandemic by redesigning and integrating their systems to help them cope and live with the after-effects of the pandemic, Rural and Community Banks (RCBs) need to be realigned and positioned to become more resilient in the face of the economic uncertainties facing the world.” Appeal for retrieval of locked up funds Lawyer Larry Kwesi Jiagge, President, of Volta and Oti Chapter of the Association of Rural Banks pleaded with the Second Deputy Governor to use her good offices to help the banks retrieve their locked-up funds from the Securities and Exchange Commission (SEC) Regulated institutions. Stressing on the effects of the lock-up on the funds on the activities of the financial institutions, he said, “The locked-up funds are seriously affecting the operations of the RCBs. Governor, please help us retrieve the funds to help shore up the liquidity and the financial strength of our banks.”

The Managing Director of the ARB Apex Bank has bemoaned the failure of the banking sector, particularly operators of rural community banks (RCBs) to fully bridge the rural financial intermediation gap. Mr. Alex Kwasi Awuah while lamenting over the delay in bridging the gap, attributed the situation to the failure of the banking sector to fully embrace and integrate the tools needed to help it bridge the yawning gap between those who have access to financial services and the unbanked population. The MD made the remarks during a two-day event of the 21st Annual CEOs Conference of the ARB Apex Bank held between Friday, October 14th and Saturday, October 15th, 2022 at Ho, the Volta Regional capital which brought together top management of the Apex Bank, the Bank of Ghana and other related financial institutions. The conference was held on the theme: “Positioning Rural Banking at the Center of Financial Services Delivery in Ghana – the Role of Stakeholders.” The Bank of Ghana, as part of efforts to bridge the rural financial intermediation gap, established the first Rural and Community Bank (RCB) at Nyakrom in the Central Region in 1976. 46 years on, however, this vision is yet to be realized. “Firstly, the Bank of Ghana Rural Banking concept with the establishment of the first RCB at Nyakrom in the Central Region in 1976 with the view to bridging the rural financial intermediation gap. However, almost fifty years down the line, the gap remains palpable, on the one hand, due to no fault of the rural banks, but on the other because we have not fully embraced and integrated the tools needed to help us bridge the yawning gap between those who have access to financial services and the unbanked population,” said the MD. He however expressed optimism that the advent of digitalization and the growth in financial technology would serve as the catalyst for the banks to fully embrace the digital revolution by deploying the right products and services to fill the yawning gap in the RCBs’ sub-sector through digital solutions such as Agency Banking, Mobile Banking, and the soon to be implemented Internet Banking Project. Underscoring the relevance of the theme of the event, Mr. Alex Kwasi Awuah explained that “As the nation and the entire world begins to weather the storm beyond the COVID-19 pandemic by redesigning and integrating their systems to help them cope and live with the after-effects of the pandemic, Rural and Community Banks (RCBs) need to be realigned and positioned to become more resilient in the face of the economic uncertainties facing the world.” Appeal for retrieval of locked up funds Lawyer Larry Kwesi Jiagge, President, of Volta and Oti Chapter of the Association of Rural Banks pleaded with the Second Deputy Governor to use her good offices to help the banks retrieve their locked-up funds from the Securities and Exchange Commission (SEC) Regulated institutions. Stressing on the effects of the lock-up on the funds on the activities of the financial institutions, he said, “The locked-up funds are seriously affecting the operations of the RCBs. Governor, please help us retrieve the funds to help shore up the liquidity and the financial strength of our banks.”