FEATURED: The Most Befitting Memorial In Honor Of The Late J. J. Rawlings...

06.06.2008 Business & Finance

Rural Banks urged to use new technologies to curb bank fraud

Listen to article

The Managing Director of the Association of Rural Banks (ARB) Apex Bank, Mr. Eric Osei-Bonsu, on Friday, urged rural and community bank (RCB) managers to be abreast with the operations of the E-ZWICH, technology, in order to minimize fraud within the rural banking sector.
He pointed out that the introduction of the E-ZWICH was a development which could take the banking sector and the entire financial system onto the international platform.
Mr. Osei-Bonsu, made the call at the 7th Annual ARB Apex Bank and Community Managers Conference' on the theme: “Transformation of national payment system- The role of the rural and community banks”, at Elmina.
Topical issues being deliberated upon include; “ Strategies to minimize fraudulent activities within the rural banking industry, and “meeting the challenges of change in the banking industry- the strategies, plans and programmes of RCBs.
He said, “sufficient thought and work” was therefore going into the development of the technological platform which would ensure the participation of the rural banks and increase the variety of products available.
Touching on the Bank's financial performance, he said for instance, between 2002 and 2007, the Apex Bank achieved a lot, in terms of fund transfer after collaborating with seven institutions to receive a total remittance of GH¢34,96,983.86.
He said through this venture, the rural banks earned a total commission of GH¢70,101.29 and that in 2006, a total of GH¢21, 654.00, was remitted, while the commission earned was GH¢51,710.

Mr. Osei-Bonsu noted that as at December 31, 2007, the bank had also moved a total of 601.12 million Ghana cedis by its bullion van, adding that the amount, excluded monies moved during the redenomination exercise, and said this had given credence to the viability and efficiency of rural banks.
The Managing Director stressed that the recognition and growing public confidence in the rural banking system were as a result of the services provided by the Apex Bank in support of the entire rural banking sector.
He noted that it was imperative for them to pool their expertise and resources to enable them face the emerging competition in the banking sector.
According to him, the Bank of Ghana (BOG) was now more interested in the provision of financial services by accredited financial services providers and has as such, removed all barriers to those who hold universal banking licenses, which meant that rural banks would no longer be protected against the “intrusion” by the big commercial banks.
He said the Apex Bank had therefore trained some personnel in all the rural banks in microfinance for them to be more effective and efficient since the strength of the rural banks within the banking fraternity was in their microfinance activities.
The Central Regional Minister, Nana Ato Arthur paid glowing tribute to the founders of the Apex Bank and said its contribution towards the successes being chalked by rural banks in the country could not be over-emphasized and urged rural banks to offer more support to the development of agriculture in the country.
The chairman of the Central Region Chapter of the Association of Rural Banks, Mr. Kweku Acquaah, who presided, said the role of rural banks was now being recognized by high profile institutions such as the universities and the MDAs, and urged the banks to be more innovative and efficient to sustain public confidence.

Modern Ghana Links