By Prince Acquah
Cape Coast, Aug 03, GNA – The Ghana Co-operative Credit Unions Association (CUA) has urged Ghanaians to embrace digital technology to improve access to financial services and foster financial inclusion.
Reverend Joshua Akwetteh, the Head of Development Services at the Association, said technology was transforming financial services, making it necessary for credit unions to strengthen their digital capacity.
In that regard, he said members also needed to improve their knowledge of technology to fully benefit from modern financial services.
“All the financial services that cooperatives or microfinance institutions are providing are technology driven and so we encourage them to also upgrade themselves in terms of their knowledge in technology to advance the inclusivity we are all seeking,” he said.
Rev Akwetteh made the call at the 30th Annual General Meeting of the University of Cape Coast Co-operative Credit Union which assembled stakeholders to review the Union’s performance, promote accountability and chart a course for its future.
He said the Association had introduced a range of technology-based products and services to enable members to transact business without visiting credit union offices.
The initiative, he said, would make transactions faster, more convenient and accessible from any location.
“So we are encouraging and taking our mobile bankers through rigorous training so that when they meet these members face to face, they can explain things to them in a way that they would understand,” he added.
On loan repayment, he urged members to honour their financial obligations, saying responsible borrowing was essential to the sustainability of credit unions.
Quoting Psalm 37:21, Rev Akwetteh reminded members that borrowers had a moral responsibility to repay loans, saying it was only “the wicked borrows and does not repay.”
He expressed optimism that ongoing reforms by the Bank of Ghana, including linking credit unions to a credit bureau, would improve loan recovery.
He cautioned that borrowers who defaulted on their loans would become credit-unworthy, making it difficult for them to access credit facilities in the future.
Mr Vincent Yamoah, the CEO of the UCC Credit Union, accounting to the members, reported that the union recorded its highest-ever growth in total assets, surpassing the annual growth rates of less than 30 per cent achieved in previous years.
He said the credit union also experienced substantial growth in membership, largely driven by the establishment of new branches at various places, projecting a continued growth in both asset and membership in the coming years to further strengthen the union.
Mr Yamoah corroborated the challenge with loan repayment particularly following the union’s expansion beyond the UCC community.
He noted that unlike university staff whose loan repayments are deducted at source, members outside the university posed higher repayment risks, with many defaulting on their loan obligations.
“The major challenge with loans is that some of the members are not being truthful. You give them the loan, and then they refuse to pay,” he lamented.
“Because of that, we have tightened our security for the loan and they also come up complaining. But we have to do it in such a way that there will be a win-win situation,” he said.
On compliance, Mr Yamoah said the union had made regulatory compliance a top priority as the Bank of Ghana prepared to assume oversight of credit unions.
He said management was working to grow the union’s assets to meet future regulatory requirements and remain resilient against possible sector reforms or policy changes.
Mr Theophilus Attram Nartey, the Board Chairman of the UCC Credit Union, described the union’s selection by the Bank of Ghana for licensing as a major milestone.
He announced that the union had introduced an intervention, the Golden Pension Plan, to help shore up members’ retirement income by making regular contributions of GH¢100 daily, weekly or monthly before retirement.
Unlike regular savings, he explained that members could not withdraw funds from the Golden Pension Plan until six months before retirement, when they may access part of their savings, with the balance available upon retirement.
“We have interest on it and that is going to be juicy and will help you to live a life that is comfortable at the end of your retirement,” he said.
GNA
Edited by Alice Tettey/Benjamin Mensah
Reporter: Prince Acquah
Reporter’s email address: [email protected]