Expanding Financial Access in Ghana
The Managing Director of FirstBank Ghana, Victor Yaw Asante, has emphasized the bank’s commitment to expanding its physical presence across the country. This initiative aims to bring essential financial services to underserved communities and improve accessibility for all customers.
Speaking to the Business and Financial Times (B&FT), Mr. Asante highlighted that while digital migration is a significant focus for the bank, maintaining a strong physical footprint remains equally important. He revealed that the bank has successfully doubled its number of branches from 15 to 30 within five years.
“Banking is moving to digital, and we’re doing more on the digital side than at the brick-and-mortar side; but I recognize that there must be touch points with customers,” he said. “For the whole of the northern Ghana, we did not have one branch. Tamale was our entry.”
Following the recent commissioning of FirstBank Ghana’s branch in Tamale, which marks the first in northern Ghana, Mr. Asante noted that the bank now has 70 percent physical coverage. He stated that the bank is committed to covering the remaining 30 percent and providing unmatched digital solutions and its FirstMonie agent network to drive financial inclusion.
According to him, this two-pronged approach will help improve customer experience and make FirstBank accessible to underserved communities.
A Strategic Move for Financial Inclusion
The branch in Tamale, which Mr. Asante described as the most beautiful in the town, showcases FirstBank Ghana’s commitment to financial inclusion. “It is a catalyst to a whole lot of things, especially economic,” he said, emphasizing that physical branches are a critical component of building trust and accessibility.
“We went to Tamale as part of our plan to expand to bring physical banking to the doorstep of our clients,” he stated, stressing that “it is not the last.”
Despite being deemed high-risk, Mr. Asante stated that small and medium-sized enterprises (SMEs) are the primary focus of his bank. He mentioned that FirstBank Ghana provides SMEs with affordable and tailor-made products. Having started as a trade-focused bank, he noted that FirstBank’s DNA is intertwined with SME banking.
“We have bespoke products and services for every segment – everything for everybody, but we were primarily an SME bank before we added retail, commercial and corporate,” he explained.
Mitigating Risks in SME Lending
To mitigate the risks associated with lending to SMEs, the FirstBank Ghana MD revealed a philosophy of “control over the core inventory, having title over what we finance.” He stated that instead of relying on traditional security, the bank employs a “hands-on approach that helps it to track the journey of its financing.”
“We pay directly to the supplier for you. We monitor you, we look at your debtors list and we make sure inventory management is okay,” he said.
“It is a mixture of control of production process and inventory management,” Mr. Asante asserted. “When people know that they are being scrutinized, they behave. So, we give them a reason to behave. Once you make profits, you can go and do what you want to do with your money. But once you have our money, we will not give you the chance to misapply.”
However, he maintained that FirstBank Ghana has a supportive model for SME growth. This includes providing financial advisory services and teaching SMEs how to keep proper books.
Supporting SME Growth Through Innovation
The bank also offers specific products like First Trader Solution, which is a short-term overdraft facility offered to traders in pre-approved market locations who deal in fast-moving goods. This product is designed to meet the unique needs of traders and support their daily operations.
FirstBank Ghana continues to evolve and adapt to the changing financial landscape in Ghana. By combining its physical presence with innovative digital solutions, the bank is making significant strides in promoting financial inclusion and supporting the growth of local businesses.