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.

Story by Ghana/Myjoyonline.com