'Banks must review dress code of staff in villages'

The seeming crisis in the microfinance sector in Ghana could inure to the advantage of commercial banks if the right measures are taken, a former deputy governor of the Central Bank has stated.

Emmanuel Asiedu Mantey says it is high time universal banks changed their "modus operandi" in rural areas in order to attract more customers.

His comment follows the Central bank’s decision to revoke the licenses of seventy microfinance companies for failing to meet the conditions precedent to the issuance of a final license.

In an interview with Starr Business, Mr. Asiedu Mante said perceptions that microfinance companies offer cheap loans are misleading.

“They are not soft loans at all; they will tell you if they give you money they will give you five percent per month, multiply that five percent by twelve; five multiplied by twelve, you are in the sixty percent range meanwhile the banks are taking twenty five, thirty percent so they are not soft loan at all” he analysed.

He is proposing that universal banks relax documentation, extend business hours and change their dressing codes in rural areas to appeal more to the people.

“… There has been a long debate as to people operating in rural areas as to whether they should be wearing ties and coats to the office as the banks do normally; because that alone can scare the rural farmer and some of them get discourage by those things, so they will rather approach somebody in a little corner where there is a money lender or a microfinance institution; quick deal then they are gone”.