Government’s agenda to reduce the unbanked population and increase financial inclusion is gaining significant ground.
Over the years small and medium scale enterprises (SMEs) have been an important pillar in the growth of the Ghanaian economy, providing employment to over 60 per cent of the Ghanaian both in the formal and informal sectors.
A recent World Bank report indicated only 30 to 40 per cent of Ghanaians have a formal business relationship with banks and financial institutions.
This means between 60 to 70 per cent of the nation’s population unbanked, which a significant chunk of it falls within the SME sector.
Prudential Bank, like other hanks, has a huge potential clientele to explore with the creation of a micro-savings account to boost informal sector confidence.
Many universal banks have been compelled to produce banking products to save the trend.
Prudential Bank has therefore created the Prudential Micro Savings Account.
Deputy Managing Director, Richard Acolatse, is optimistic the move will increase financial inclusion.
“There is the need to provide comprehensive and accessible financial product to meet the needs of this segment of the population to increase financial inclusion agenda,” he said.
Access to credit and the ability to save are major challenges faced by SMEs that need attention without disturbing their income generating activities.
Many have often complained they do not have acceptable collateral securities to enable them to access formal credit facilities from banks and other financial institutions to support their working capital and to grow their businesses.
Their earnings are inconsistent which makes it difficult for them to continuously build up savings.
Mr. Acolatse says the product gives customers the opportunity to easily access an affordable credit facility from Prudential Bank without providing a collateral security.
“The Prudential Micro Savings Account will assist micro to small business owners and individuals to save daily towards growing their business as well as meeting their personal financial commitment.
“The micro savings account also gives you the opportunity to easily access an affordable credit facility from Prudential bank without providing a collateral security,” he explained.