Promotional
activities to drive deposits mobilization abound on the market as part of moves
by the banks to compete with non-bank financial institutions who promise high
interest on deposits.
“There
is some dryness in mobilization of deposits and with 26 of the universal banks,
it becomes very competitive, hence the various promotions that they are all
doing to mobilize savings,” observed banking expert, Nana Otuo Acheampong.
Some
of the banks are currently recording savings’ improvements in their ‘deposit
and win’ promos, though it is not clear how long this will be sustained.
However,
microfinance institutions have not been spared the challenge of mobilizing
savings to boost their capital base.
Luv
Biz Report enquiries also indicate rural and community banks are struggling
over deposits.
“We
are operating from rural communities and savings is a big challenge,” says Isaac
Kwasi Asante, Board Chairman of Amanano Rural Bank. “Therefore driving deposits
to use as the tool to drive your business become a very big challenge.”
According
to him, the banks are however striving to effectively manage the little savings
in order to grant loans to people.
Mr.
Asante entreats financial institutions to be circumspect in managing depositors’
funds to instill confidence in the banking industry.
“People
who are into these businesses use depositors’ funds to finance capital
expenditure; if you don’t have the funds to expand, you don’t use depositors’
funds because a depositor can come at anytime to request for his funds,” he stated.
He
noted the need for banks t plan their expansion projects with at shareholders’
funds to avoid mismanagement of depositors’ funds.
Story
by Kofi Adu Domfeh
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