Technological advancement and the use of internet has become very indispensable in the present day banking environment.

It is therefore in this regard that rural and community banks have been encouraged to embrace technology in banking so as to attract and retain clients as most of them are technologically knowledgeable and therefore must begin to invest in e-banking products, such as Automatic Teller Machines (ATMs), electronic payment cards among others.

However, directors and managers of rural and community banks have been cautioned on the deployment of electronic banking products with the best risk-mitigating measures in deploying these electronic products and have further been urged to do so with the maximum security to avoid losses that can occur through security lapses.

The National President of the Association of Rural Banks, Dr Nana Akowuah Boamah gave the advise at the 19th Biennial General Meeting of rural banks held last Friday on the theme ‘Forty years of Rural Banking-Achievements, Challenges and Prospects'.

According to him, Rural and Community Banks have contributed significantly to the development of Ghana over the past forty (40) years in spite of the numerous challenges posed by the economy. The industry currently employs about 4000 people, most of who are in rural communities.

In the area of education, the industry has not only constructed classrooms and science laboratories, but has also provided computers to schools and awarded scholarships to brilliant but needy students in their operational territories

Rural and Community Banks have also supported financial literacy development in communities through the organization of road shows and radio and television discussions as well as supporting such national events as Farmers’ Day and best teacher awards among others.

The aforementioned contributions of rural banks have not gone unnoticed by both national and international bodies and institutions. At the latest prestigious Ghana Club 100 awards, twenty-two rural and community banks were in the top 100 Companies in Ghana.

However the industry has been confronted with some major challenges which include weak corporate governance, competition from micro finance and savings and loans companies, liquidity, and mismanagement. Member banks have therefore been encouraged to implement requisite strategies to address these challenges by supporting one another in these times of difficulty.

The National President reiterated that the destinies of all individual banks are linked and this regard, the Association is designing measures to shore up the performance of member banks.