Nsotreman Rural Bank to leverage micro finance for growth

The Nsoatreman Rural Bank Limited at Nsoatre in the Sunyani West District of the Brong Ahafo Region has earmarked micro finance as a key operational strategy to drive its growth for 2017.

With a 20 year experience in the micro finance sector under its belt, the bank is optimistic of roping in more customers, especially small-scale traders and farmers within its operational area. The bank has set a target of at least attracting about 10,000 new clients into its fold in the next twelve months.

Briefing the B&FT on its operational Mrs. Agnes Grimmon-Intsiful, General Manager of the Bank said: “We have outlined all the necessary measures needed to expand ol outlook for 2017,ur micro finance subdivision to stimulate growth. We have what it takes to make Nsoatreman a leading force in the microfinance sector in Brong Ahafo.”

She also alluded to the collapse of many Ponzi schemes in the region, under the guise of micro finance as a blessing in disguise for rural banks that will strategically position themselves well, saying “the people have now realized the true blue-chip financial institutions that can support the course of their businesses instead of trading with sham micro finance institutions.”

In recent years, the microfinance sector among rural and community banks (RCBs) in the Brong Ahafo Region took a nosedive which adversely affected the books of the banks. The situation was largely caused by mushroomed Ponzi schemes that lured the people with juicy but unrealistic interest rates; they [Ponzi schemes]ended up swindling unsuspecting customers with millions of Ghanacedis.

“Coming from the backdrop of what happened; the public is now well-informed about financial investment. Many of our customers who left for the seemingly goldmine are returning to trade with us. This gives us the sense of hope that our micro finance sector will rediscover its past glories,” the Manager stated.

The bank, she noted, has also identified some resident cocoa farmers within its catchment area,whose farms are located in the Western Region. The bank will strike acquaintance with these cocoa farmers scattered in communities like Nsoatre, Jinijini and Yamfo; the bank will therefore do fruitful business with them, she explained.

The aforementioned strategies among others, Mrs. Grimmon Intsiful indicated are expected to propel the bank to achieve its operational targets for 2017. The bank targets a profit of one million Ghana cedis; it is also expected to raise about GH¢500,000 as share capital to help meet the one million Ghana cedis minimum capital requirement.