South Akim Rural Bank PLC: Pioneering Financial Inclusion in Ghana
South Akim Rural Bank PLC stands as a beacon of financial inclusion in the Eastern Region of Ghana. Established in 1984, the bank has dedicated itself to empowering local communities through innovative microfinance schemes that cater to the diverse financial needs of its clientele. Under the leadership of CEO Stephen Yamoah Nteful and Board Chairman Dr. Theophilus K. Oware, the bank has made significant strides in promoting economic growth and stability in its catchment areas.
Microfinance Schemes: A Catalyst for Growth
At the heart of South Akim Rural Bank’s mission is its microfinance scheme, which comprises two key products designed to provide financial support to the underserved populations. The first product, Susu Dwetri Savings and Loans, has been instrumental in fostering a culture of savings among individuals while simultaneously offering them access to loans for business expansion. This initiative has successfully enrolled over 24,202 individuals, empowering them to cultivate savings habits and secure funding for their entrepreneurial ventures.
The impact of the Susu Dwetri product is evident in its impressive financial mobilization, with deposits totaling GH₵40,551,185.68 and loans disbursed amounting to GH₵89,340,800. The bank’s commitment to reaching a broader audience is reflected in its employment of 50 mobile bankers and 10 field monitors, who actively promote this product across various communities.
The second product, Adwumapa Dwetri Savings and Loans, launched in 2011, focuses on empowering women by facilitating the formation of solidarity groups. This initiative allows members to save collectively and access financial support without the burden of collateral. Currently, 346 groups comprising 4,782 members benefit from this product, which has disbursed a total of GH₵91,953,600 in loans. The bank further enhances the sustainability of these groups through educational seminars that equip members with essential skills to navigate health and socio-economic challenges.
Financial Performance: A Testament to Growth
The financial performance of South Akim Rural Bank for the year ending December 31, 2023, showcases its robust growth trajectory. Key indicators reveal a significant increase in deposits, investments, and profits compared to the previous year. Total deposits surged to GH₵134,492,012, up from GH₵105,691,864 in 2022. Investments also saw a remarkable rise, reaching GH₵95,084,276, while loans and advances increased to GH₵40,622,178.
The bank’s pre-tax profit climbed to GH₵4,878,624, reflecting a substantial increase from GH₵3,092,243 in the previous year. Post-tax profits also rose to GH₵3,031,066, underscoring the bank’s effective management and strategic initiatives. With total assets now amounting to GH₵158,134,268, South Akim Rural Bank is well-positioned for continued growth and sustainability.
Embracing Technology: E-Banking Services
In an era where technology plays a pivotal role in banking, South Akim Rural Bank has embraced e-banking initiatives to enhance customer convenience. Collaborating with ARB Apex Bank PLC, the bank has introduced a range of e-banking products, including USSD Mobile Banking and Ghana Pay. The establishment of a dedicated desk to coordinate these services has resulted in the bank being recognized for having the highest number of customers onboarded onto the USSD Mobile Banking platform for several consecutive months.
Corporate Social Responsibility: Giving Back to the Community
South Akim Rural Bank is not only focused on financial growth but also on making a positive impact in the communities it serves. The bank actively engages in corporate social responsibility initiatives, providing donations such as knapsack spraying machines, wheelbarrows, wellington boots, and sewing machines during National Farmers’ Day celebrations. These contributions extend to educational and health facilities, where the bank supports building and rehabilitation efforts.
Additionally, the bank plays a vital role in supporting traditional authorities during local festivals, reinforcing its commitment to community engagement and development.
Looking Ahead: The Creation of an SMEs Desk
As part of its ongoing efforts to support local businesses, South Akim Rural Bank is in the process of establishing a special desk dedicated to small and medium enterprises (SMEs). This initiative aims to coordinate financial assistance and training for SME customers, fostering an environment conducive to business growth. Preparations are underway for an SME Business Incubation Seminar, which will focus on identifying and nurturing SMEs within the bank’s catchment areas.
Through these initiatives, South Akim Rural Bank PLC continues to exemplify the essence of financial inclusion, empowering individuals and communities while driving economic development in the Eastern Region of Ghana.
