![S&L sector assets hit GH¢7.6bn](http://news.ghheadlines.com/images/default.png)
By Rashidatu IBRAHIM
Total assets for the savings and loans (S&L) sector grew to GH¢7.6billion as at the end of 2023 from GH¢5.7billion in the previous year.
The growth, according to Kwame Owusu-Boateng – Chairman-Ghana Association of Savings and Loans Companies (GHASALC), is driven primarily by growth in loans and advances to customers from customer deposits.
The year concluded with 25 companies being members of the association.
Delivering his speech at GHASALC’s 14th annual general meeting in Accra, he elaborated that as of end-2023 the Association’s members collectively served more than 5.5 million customers with over 7.7 million accounts.
Additionally, the Chairman revealed that the sector’s gross loan portfolio amounted to about GH¢5.4billion with services leading at over GH¢3billion, followed by commerce/trading, agric/fishing and manufacturing respectively.
“There has been an improvement in the 2023 deposit mix compared to 2022, indicating that member companies are increasingly growing their deposits through Current Accounts and Savings Accounts (CASA), which have traditionally been cheaper sources of funds for the sector,” he stated.
The14th annual general meeting was themed ‘Advancing financial inclusion for all: The role of savings and loans companies’.
Mr. Owusu-Boateng underpinned the role of savings and loans companies for deepening financial inclusion in Ghana.
According to him, financial inclusion is not merely a goal but a cornerstone of sustainable economic development that empowers individuals and communities by providing them with the tools and resources necessary to improve their livelihoods and build a more secure future.
At the heart of this endeavour, he noted, are savings and loans companies playing a vital role in bridging the gap between traditional banking services and unbanked or underbanked populations.
“Savings and loans companies have a unique ability to reach segments of society that are often overlooked by traditional financial institutions. By offering tailored savings products, micro-loans and other financial services, individuals are empowered to save, invest and secure loans for entrepreneurial ventures or personal development.
“As a sector, our dedication to broadening access to financial services across most, if not all, sectors of society remains significant in the financial inclusion agenda during these challenging times,” he explained.
He reaffirmed the sector’s commitment to promoting financial inclusion, urging stakeholders – including shareholders, regulators, employees and development partners – to join in the initiative.
“Together, we can build a more inclusive financial ecosystem where every individual can prosper. Surely, the number of unbanked and underbanked clients is many; and we have to continue finding innovative strategies and solutions to bank those at the pyramid’s base who have been left out of the formal financial services sector.
“To government, development partners and other donors, we seek your support and increased attention toward non-bank financial institutions, particularly Savings and Loans Companies. As a critical sector driving financial inclusion, we actively support youth, women, MSME entrepreneurs and farmers. We call for more collaborative efforts to strengthen our sector, ensuring we continue to serve as agents for inclusive finance across Ghana,” he added.
Delivering his report at the AGM, Tweneboah Kodua Boakye – Executive Secretary, GHASALC, also urged savings and loans companies to adopt more innovative strategies to ensure resilience given the current economic situation.
“Considering the current economic situation, it is important that Savings and Loans Companies implement more adaptive strategies to ensure resilience.”
He implored members to prioritise, among others, strengthening regulatory compliance, particularly ensuring timely reporting; innovating and differentiating products; exploring opportunities in climate and green financing; as well as enhancing cybersecurity systems to safeguard operations and customer data.
Also, improving risk management frameworks and internal controls to mitigate uncertainties; optimising operational efficiency by controlling costs effectively; and deepening market engagement and understanding customer needs.
Challenges
Despite the progress recorded in 2024, he cited the regulatory landscape adopting innovative technologies and continuously enhancing operational efficiencies to better serve customers and clients as a challenge.
The post S&L sector assets hit GH¢7.6bn appeared first on The Business & Financial Times.
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