<\/p>\n
Elsie Addo Awadzi<\/strong><\/p>\n The Second Deputy Governor of the Bank of Ghana (BoG), Elsie Addo Awadzi has implored Rural and Community Banks (RCBs) to leverage growing digital technology to maintain relevance within the financial services space.<\/p>\n According to her, commercial banks were riding on digital technology and the government\u2019s digitisation drive to increase appeal among rural and local communities.<\/p>\n The Deputy Governor, who was addressing the 21st Annual CEOs Conference of the ARB Apex Bank in Ho on Friday, said the reach and acceptance of digital technology should encourage the RCB sector to re-strategise.<\/p>\n She noted that \u201cDigital technology is redefining the financial landscape. Commercial banks now can reach communities cost-effectively using technology.<\/p>\n \u201cThat divide between what belongs to the RCB sector and the commercial banks are gone. There is no boundary in the financial market, and it\u2019s a wake-up call for the RCB sector.\u201d<\/p>\n Mrs Addo Awadzi said customers would be forced to rethink the use of rural banks as commercial banks continued to break ground in a space that was considered exclusively for RCBs.<\/p>\n She said RCBs must consider digital technology an \u201cenormous growth area,\u201d and leverage their strengths in penetrating local communities, in seeking to revise strategies to add value to the products and services to suit customers.<\/p>\n \u201cRepositioning RCBs means it\u2019s essential to take stock of the strengths and weaknesses of the industry. Customers are driving innovation. They are asking for ways of banking that are more suitable and deliverable to their taste.<\/p>\n \u201cAny financial institution that has not adopted digital transformation technology is clearly behind the curve. RCBs should endeavour to reorganize their business modalities to remain relevant,\u201d the Deputy Governor added.<\/p>\n She said the Government and its stakeholders recognised the place of RCBs within the nation\u2019s financial security structure, and that the Ministry of Finance and the BoG would continue to support the sector to grow along the digital transformation path.<\/p>\n Mrs Addo Awadzi said the Government and the World Bank would work together to strengthen the Apex Bank to scale up and revive RCBs and help enhance technology exposure for the sector.<\/p>\n She urged the management of the sector to \u201ckeep in mind the compliments and the risks,\u201d and said with \u201cstrong governance, and strong risk management systems,\u201d the risks should be mitigated.<\/p>\n She said RCBs would have to augment their capital base to be able to implement the appropriate systems and strategies.<\/p>\n The BoG deputy Governor noted that several RCBs were yet to implement the BoG\u2019s 2018 cyber security strategy and that CEOs must ensure their institutions took the line.<\/p>\n She further said the BoG\u2019s sustainable banking principles launched in 2019 should be embraced by RCBs, which are expected to use their lending power to promote clean and more environmentally sustainable ways of doing business.<\/p>\n The three-day conference was on the theme: \u201cPositioning Rural Banking at the Center of Financial Services Delivery in Ghana- the Role of Stakeholders\u201d, and brought together top management of the Apex Bank, the Bank of Ghana and other related financial institutions.<\/p>\n Alex Kwasi Awuah, Managing Director of the ARB Apex Bank, said the rural financing gap, which formed the rationale behind the establishment of the rural banking system in Ghana by the BoG, had not been addressed 50 years on.<\/p>\n He said it was because the sector had not embraced the tools available.<\/p>\n \u201cDigitisation and growth in financial technology solutions would help fully embrace the digital revolution by delivering the right products and services to bridge this yawning gap in the rural and community banking sub-sector,\u201d Mr Awuah said.<\/p>\n The Managing Director said the ARB remained confident that with its agency and digital banking systems, the sector\u2019s needs would be met.<\/p>\n He said CEOs remained the guarantors of the successes of the banks and should focus on saving banks from deterioration.<\/p>\n Dr Toni Aubynn, Board Chairman of the Apex Bank, challenged RCBs to \u201cuse turbulent times to seek innovative thoughts and skills to bear in withstanding global whirlwinds and be able to emerge stronger.\u201d<\/p>\n By Vincent Kubi<\/strong><\/p>\n \n\t<\/div>\n","protected":false},"excerpt":{"rendered":" Elsie Addo Awadzi The Second Deputy Governor of the Bank of Ghana (BoG), Elsie Addo Awadzi has implored Rural and Community Banks (RCBs) to leverage growing digital technology to maintain relevance within the financial services space. According to her, commercial banks were riding on digital technology and the government\u2019s digitisation drive to increase appeal among […]<\/p>\n","protected":false},"author":1,"featured_media":1227102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[1274,1084,4177,1278,3779,985],"class_list":["post-1227100","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-banks","tag-bog","tag-leverage","tag-rural","tag-technology","tag-urges"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1227100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1227100"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1227100\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1227100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1227100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1227100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}