By Solomon Davids

It has been said over and again the savings culture of Ghanaians is not all that encouraging. It is estimated that less than 40% of the entire population save their money at the bank, whilst the rest find other means of saving their cash.

This attitude of keeping money elsewhere beside the bank is due to several reasons, some of which could be put at the doorsteps of the banks or better still the regulations governing banking in the country. In spite of the numerous banks across the country, many Ghanaians still find it prudent safeguarding their currencies outside the banking system, damning the consequences. Some of the reasons include the ease with which one could gain access to their own monies without any “bureaucracy.” To the average Ghanaian it makes no sense queuing in the banking hall to cash one’s own money after filling forms designed for literates. Illiterates are therefore compelled to thumbprint with the assistance of others. What happens during an emergency case on a Sunday? It would be better to have one’s own money at home to spend as and when needed, risk or no risk. For those who hold savings accounts, isn’t it annoying to be restricted on the amount one could withdraw from their own money? (Current accounts are not attractive to some of them due to monthly charges); these are some of the arguments advanced by those who fail or refuse to save, much as they know the benefits derivable from it.

One of the deterring factors to savings in the country was the huge sum required to start an account. However, with the influx of Nigerian banks which introduced cashless accounts and ridiculously low start ups, most, if not all the banks in the country, have drastically reduced their minimum requirement; and some of the “untouchable banks” have embarked upon strong marketing drives to woo more customers into their fold, especially those who did not previously “qualify” to save with them.. It is no stranger to see marketing executives from the “almighty” banks walking into your shop or market, convincing you to sign up to one account or the other. Hardly does a day pass without hearing of a new product from the banks. Truly, competition has brought about a race to the bottom with the customer benefiting tremendously.

Despite these developments, the savings habit of Ghanaians still remains low and many still wonder what could be wrong. Only about 3.2 million people have bank accounts and about 80 percent of Ghanaians are financially illiterate. Funnily enough, there is a strange clause in the banking regulations that deters a lot of people from saving: the provision of a copy of utility bill, electricity or water bill. It is believed that the intention of the drafters of these regulations is to prevent clients of the banks from engaging in any fraudulent act, knowing that they could be traced to their residences. It is also apparent that, this requirement was copied from a developed country, where the system is well structured to make it easy for a person to be tracked. It is also very surprising that the clause was adopted without any modification to suit our local circumstances. Far from looking down on the idea behind the requirement, I must say that, instead of helping the banking system, it is rather discouraging a lot of prospective account holders from walking into the banks to save.

It is common knowledge that majority of the people living in cities like Accra and Kumasi stay in rented apartments, most of which are compound houses. Many of them live in fear of ejection at the least “provocation” of the landlord or lady. In fact, it is forbidden to ask for your right in such compound houses and the “too known” tenant risks having his/her room allocated to “a relative returning from abroad.” There are tenants who have never seen their utility bills ever since they entered their rooms. All they know is that, the landlord or lady announces what they have to pay at the end of the month. In some cases, the monies are collected but never paid, only for the service to be disconnected and the “boss” is not answerable to any tenant. You enquire about the cause at your own peril. Against this background, it is a taboo to ever ask your landlord or lady for a copy of the bills to open an account. What this implies is that it is not possible for such tenants to ever open an account, because they will not dare ask the house owner for it. Does it not make sense in this circumstance to rather open an account in the bedroom? After all, no requirements are needed.

Interestingly, some of the houses in some areas do not have proper demarcations and for that matter, proper house number; one house leads to the other, the other’s beginning or end is unknown and some bedrooms are just like an extension of the road. In case of fraud, it would be difficult locating such houses.

Even when one is able to provide a bill, there is the demand for proof of relationship with the house owner to clear any doubt. If you don’t share the same surname with the owner, you have a problem because you may be presenting a strange bill. You would therefore have to get clearance from the landlord or lady via a written note.

Some time ago, I was refused the opportunity to renew my account at one of the banks in Accra just because I could not provide a utility bill. I walked into the bank, filled the slip and presented it and amount of money to the teller only to be told my account had been closed for lack of activity. I asked if it could be activated and she referred me to customer service personnel. She fidgeted with her computer and told me I would have to re-open an account; I accepted it. Then came the “funny requirements;” a voter’s or national identity card (another problematic requirement), a utility bill among others. The other requirements were affordable. I then had to explain my case. I live with an Auntie in a house built by her mother; the utility bill is in the name of her brother who bears the name of their father. She (my Auntie) bears the name of her husband and I have an entirely different name. I told the bank official that there is no relationship between my name and the one on the bill. She said I would have to get clearance from her. Unfortunately, she was indisposed and moreover does not bear the name on the bill; so how can I prove that I live in the house in question? She could not do anything and I understood her because of the system we live in. we have a “zombie” system where officers are told to do one thing or the other with any discretionary consideration. “Master says” or “order from above” is all you hear from them. I have tried many other banks and the same issue kept cropping up.

I may be wrong but I think this requirement is a hindrance to the quest to get as many people as possible to save at the bank. Security is very important but when it becomes a blockade to the flow of a system, then it becomes a problem. May be, with the introduction of the e-zwitch system, all these things would be a thing of the past soon. But, how many people are switching to the e-zwitch system as at now. Since the e-zwitch would rely on the data in the banks to be effective, there is the need for a review of requirements for opening an account; else there would be more people outside than inside the system.

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