Odotobiri Rural Bank Makes Novel Move To Develop App For Credit Transfer

Managers of Odotobiri Rural Bank has revealed plans to develop a mobile application to enable customers to transfer credit to other branches of the bank and to rural banks.

It will also enable the transfer of funds from the rural bank to a commercial bank on the same platform.

Chief Executive of the rural bank, Mr Siaka Baba Ahmed, says the initiative will strengthen the capital base through deposits and enhance fund mobilisation.

“Mobile banking is the order of the day, so if you don’t give your client the opportunity to do that they will move to another bank”, he explains as another reason for the mobile application.

He revealed this during the 31st Annual General Meeting of the bank held in Jacobu.

The During the 2017 financial year, deposits increased by 22.26 per cent.

Investments in Treasury Bills and other short-term securities also recorded an increase of 23.4 per cent.

During the period, the bank extended total loans and overdraft facilities of 31, 790,000 Ghana cedis to customers; a 25.48 per cent increase from the previous year.

The 2017 annual report revealed the increase was due to intensified mobilisation coupled with growing public confidence in the bank’s operations.

To sustain the gains, Mr. Siaka Ahmed says the bank is also introducing bankassurance as part of new financial services.

“We are looking at a one-stop shop so we are looking at doing bankassurance, introducing all manner of insurance packages like child education, investments for clients and funerals insurance because in Ashanti Region if you don’t do anything about funerals you will lose out,” he said.

He explains that often the bank’s loses out on a chance to increase its deposits because clients continuously request insurance policies which they do not have.

Omanhene of Jacobu Traditional Area, Nana Fosu Kwadwe-Abiri II, has been asking persons he described as detractors of the bank to channel their efforts in helping to build the rural bank.

“We have built this bank for close to 35 years, and because the manager is strict with financial practices, some people especially some debtors of the bank -- the detractors -- want to tarnish his image and that of the bank,” he laments.

According to him, in the face of the current liquidation challenges of some commercial banks, it is important to work together in the rural banking sector and guard against false information that may result in panic withdrawals.

“Even these big commercial banks are collapsing but we have managed the banks for close to 35 years. Please, let us support and protect our banks,” he said.

Financial performance
During the year under review, the bank extended total loans and overdraft facilities of 31, 790, 000 Ghana cedis to customers representing an increase of 25.48 per cent

Sector 2017 (GHANA CEDIS) 2016 (GHANA CEDIS)
Agriculture 2,501,467.00 1,357,143
Small Scale Industries 3,265,733.00 3,086,072
Transport 1,469,495.00 1,684,202
Trading 14,390,764 1,778,207
Others 10,644,653 17,951,579
Chairman of the Board of Directors, Mr B. Asamoah Boateng appeals to customers that, “beneficiaries of these loans who have defaulted should make positive efforts to repay their loans to enable others also benefit from such facilities”.

The bank recorded a net profit of 3, 355, 078 Ghana cedis in 2017 representing a decline of 15.28 per cent from 2016 financial year.

Total assets recorded an increase of 22.14 per cent moving from 87,504,000 Ghana cedis in 2016 to 106, 880, 000 Ghana cedis in 2017.

Share capital also grew by 33.34 per cent, that is increasing from 1,917, 880 Ghana cedis in the year 2016 to 2,557,382 Ghana cedis as at 31st December 2017.

A total of 551, 208. 08 Ghana cedis was paid as dividend to customers which translates into 0. 020 pesewas per share.

The bank spent 216,140.50 Ghana cedis on corporate social responsibility activities.

Future outlook
The Board is poised to intensify the loan recovery efforts in order to improve the portfolio quality of the bank.

Also, several measures have been instituted to strengthen the Bank’s microfinance operations.

New branches
The bank has applied for a license from the Bank of Ghana and awaiting approval for construction of branches at Satasi by October and Abuakwa early next year.

Feasibility studies were conducted in the year 2017 at Tarkwa and Techiman and the board has settled on Techiman as the location to open a branch.