[ 2015-11-30 ]

Savings and Loans Companies urged to embrace mobile money technology
Savings and Loans companies in the country have
been urged to make use of mobile money
technology.

According to Dr Asare Akuffo, Managing Partner,
Mate-Kole and Akuffo, Chartered Accountants and
Management Consultants, it will help reduce their
transaction cost significantly.

He made the call fifth Annual General Meeting of
GHASALC in Accra.

Speaking on the theme: ‘Inclusive Financing:
A Tool to Strengthening the Savings and Loans
Sector in Ghana”, Dr Akuffo advised them to
reengineer to become attractive to the large
population at the base of the economy.

“Your future survival depends on your
ability to achieve economies of scale through the
attraction of loyal customers and this you have to
do actively whilst patiently creating assets of
acceptable quality,” he said.

Dr. Akuffo also challenged the Savings and Loans
companies to request for documentation as only a
limited number of their customers at the base of
the pyramid had formal identity documents, while a
few had formal residential addresses or utility
bills.

“Your Association should work with the
Banking Supervision Department to have acceptable
Know Your Customer requirements that will not
constrain growth of our business,” he
advised.

Also, the Executive Secretary of the association
Eunice Brako Marfo in her report said the
association operated unfavorable business
environment characterised by high inflation and
inadequate power supply.

“This made our net supply for the year to
be reduced by 61 per cent from GH¢ 40,749 in
2013 to GH¢ 15, 922 in 2014, compared to a 26
per cent increase in the previous year’s of
GH¢ 32,269 from that of 2012” she
stated.

Ms. Marfo revealed that GHASALC’s total
income received in the year under the review
increased by 73 per cent representing GH¢ 140,
577 in 2014 from GH¢ 81, 273 in 2013.

However, she said the total operating cost in the
same period increased by 208 per cent from GH¢
40,524 in 2013 to GH¢ 124,655 in 2014.

GHASALC’s boss indicated that
GHASALC’s balance sheet size continued to
improve marginally as the Association’s
assets increased by 12 per cent from GH¢ 99,
898 in 2013 to GH¢ 122, 284 in 2014.

On the way forward, she said the association would
be focusing on improving income generating
activities as a way to be sustainable and be a
stronger mouth piece for our members.

“Key among our objectives next year is to
champion the cause of our members and advocate for
them in every possible way to ensure they are
heard and seen in the limelight as they strive to
improve financial inclusion in Ghana,”

Eunice Brako Marfo also advised Savings and Loans
Companies to set good examples by storing and
submitting data as they strived to improve live
collectively.

For his part, Chairman of GHASALC Dr. Emmanuel
Owusu encouraged members to utilize the mobile
money service.

He believes it will reduce the opening of branches
and cut down operation cost of companies.

Dr. Owusu pledged better improvement systems among
other activities by the secretariat to help
position GHASALC on a high pedestal not only in
Ghana but on the global market.

Source - MyjoyOnline

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