The ARB Apex Bank will soon introduce ICT security policy to help rural and community banks (RCBs) reduce risks associated with the implementation of ICT products.

The Bank’s Managing Director, Mr. K.A Kusi, in a speech read on his behalf at the Abokobi Area Rural Bank’s 2013 Annual General Meeting at the weekend, said work on introducing the security for RCBs network and subsequently the policy had already begun.

Modern banking, he said, has become very competitive and risky; and with the current pace of development in ICT, banks will no doubt assume additional risks and new challenges.

To minimise the risks, he said, there is a need for effective risk-management at all levels of corporate governance, which calls for a risk management policy to identify, assess, monitor and control operational and credit risks, among others.

Mr. Kusi said one major avenue through which RCBs can develop and create a unique marketing niche to strengthen their banks is the micro-finance business.

Although almost all RCB’s are operating some form of micro-finance, he said, they must promote it (micro-finance) to sustain their banks and improve overall results.

Mr. Kusi also announced that the ARB Apex Bank, which is the umbrella-body of all RCBs in the country, is commencing branchless banking with procurement of the Temenos Arc Mobile Platform.

“One of the primary impediments to providing financial services to the poor through branches and other bank-based delivery channels is the high cost inherent in the traditional banking methods.

“In addition, when financial service providers do not have branches that are close to the customer, the customer is less likely to use and transact through their service.

“Branchless banking (BB) represents a significantly cheaper alternative to conventional branch-based banking which allows financial institutions and other commercial actors to offer financial service outside traditional bank premises by using delivery channels like retail agents, mobile phones, etc.”

To ensure that the rural banking system attracts more attention and interest from the public, Mr. Kusi said the ARB Apex Bank will continue to provide strategies that enhance the industry’s image.

He said the bank has reduced the interest rates on its borrowings to the RCBs from 20 percent and above to 15 percent, and urged them (RCBs) to take advantage of the development.

Mr. Kusi said with the assistance of DANIDA, Apex bank has also instituted a merger fund to assist RCB’s intending to merge with paid-for Consultancy services.

Congratulating the Abokobi Area Rural bank, Mr. Kusi said: “Your profits, which increased by over 400% in 2012 as against that recorded in 2011, and other healthy financial indicators…are sufficient evidence of effective and efficient management of the resources of this Bank.”

“It is my hope that you will continue to chalk-up greater successes in the years ahead. I wish to mention that the Abokobi Rural Bank was rated satisfactory in the 1st quarter 2013 report of the Efficiency Monitoring Unit of the Apex Bank.”

He however said the bank can do more by way of deposit and share mobilisation; cost control and reduction; and risk management and compliance.

The Abokobi Bank, a pioneer rural bank in Ghana, made a whopping 519.99 percent increase in profit before tax -- jumping from GH¢58,868 in 2011 to GH¢306,108 in 2012.

Board Chairman of the Abokobi bank, Nii Afutu Brempong III, said the future direction will be to open more branches, expand its microfinance programme, repackage its Susu scheme, provide mobile banking services, intensify loan recovery, and build the capacity of its staff.