The Ghanaian government is giving local banks a diplomatic push to start thinking outside the box.
Ghana Web reported the country’s Minister of Financial and Allied Institutions, Fiifi Kwetey, has accused local banks of being monotonous with their financial services and product range. Kwetey complained of a lack of innovation in Ghana’s banking sector, and claimed it was largely due to a lack of long-term investments.
“Most banks preferred to stay at the periphery, engaging in deposit taking and giving loans,” he said.
Kwetey didn’t hold back and said that if banks want to become more innovative and competitive, then they must learn to make bigger investments. Banks are taking the easy route, and opting to take small leaps that result in quick returns.
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“It’s about the mindset of wanting to get quick returns. Most of the banks are not willing to invest or be innovative. All they want is the easy road to profit, and that is deposit-taking and loans,” he added.
The nation’s banks have been encouraged by government officials to start moving away from their heavy concentration on traditional practices. In order for banks to optimize their position in the financial industry and break away from their emerging prospect status, they need to leap farther. It is necessary to transform current operations and start investing in newer technology.
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A Ghana banking survey conducted by PWC reported that electronic banking would become a main source of high income and profit for banks in Ghana. At the moment, the majority of national banks offer some type of electronic banking, however there is still major room for growth and development. Consumer expectations continue to rise, and electronic banking will soon become a minimum requirement for banking services.
Bank customers and merchants play a large role in driving bank competition, which highlights the need to introduce innovative advancements and modern technology to attract business.
Kwetey stated, “They need to invest, to be innovative and do things differently.”
To read the full story at Ghana Web click here, to read the 2012 survey from PWC click here.
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