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Microfin Rural Bank targets aggressive digitisation for growth

WhatsApp Image 2020 12 22 At 12sasa.jpeg Kwabena Owusu-Mensah, Board Chairman of Microfin Rural Bank

Tue, 22 Dec 2020 Source: thebusiness24online.net

Microfin Rural Bank (MRB) is currently working with a fintech to roll-out innovative cashless products and services whilst deepening its technological platforms as part of the shift towards 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 board chairman of the bank, Kwabena Owusu-Mensah, these interventions form part of the bank’s strategy to strengthen its operational resilience and to ensure business continuity in the face of the numerous threats posed by the coronavirus pandemic to the rural banking sector.

“The bank is committed to leveraging technology to promote operational efficiency and to 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 whilst providing the needed financial services to clients,” he said at MRB’s seventh annual general meeting in Gomoa Pomadze.

Mr. Owusu-Mensah admitted that RCBs are facing unparalleled risks and challenges due to disruptions to economic activities as a result of the pandemic but MRB has taken multiple measures to support employees and clientele as well as helped to strengthen the rural banking environment.

The bank posted a loss 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¢11.2 million in the year under review representing a 12.6 percent growth over the 2018 figure of 9.9 million whilst its stated capital also grew from GH¢1.09 million to GH¢1.12 million for same period.

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

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

“I am very confident of the team that 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.

Source: thebusiness24online.net