RCBs advised to reconsider staff remuneration

Rural banks in the country have been advised to take a second look at the remuneration of staff which has described to be very low to avoid the growing tendency where commercial banks take advantage to poach experienced personnel from the rural banks.

It was noted that considering the current competitiveness of banking currently among other things the boards and management of rural banks should make effort to introduce incentive packages to motivate their staff to remain more committed particularly after exhausting reasonable share operating expenses to train them.

RCB’s were again reminded of the need to continuously strengthen the competence of their staff to enable them to position themselves to be able to confront the challenges of the modern day banking while also cautioning them to improve upon customer service practices. This was asked to be considered as a strategic measure to make the sector more attractive to potential customers and to maintaining the corporate image as well.

Customers are ‘key’ to the operations of rural banks without whom no bank can survive or continue to stay in business. ‘It is therefore appropriate for banks to endeavor to build a good corporate image to ensure the loyalty of customers and patronage of the products and services from rural banks.’

The advice comes in the wake of increasing reports of poor customer services within the rural banking sector which is said could adversely affect the corporate image of rural banks in the country if no measures are put in place to curtail this unfortunate occurrence.

Some staff of rural banks are observed to consider their position as ‘a right, and not a privilege’ and for this reason turn to operate with some level of highhandedness which does not conform to banking rules and regulations. This behavior is noted to affect customer relations and to a large extent the reputation of such banks.

Mr. Yaw Sarpong, speaking on behalf of Mr. Kwadwo Aye Kusi, Managing Director of the ARB Apex Bank Limited, at the 28^th Annual General Meeting of shareholders at Juaben, noted to boards and management of RCB’s to institute effective risk management policies to address the risk associated with the current trend of banking.

He highlighted on a number of products and services on offer at the Apex Bank notably the current interest rate which is said to have been reduced from 20% to 15% to equal the BoG policy rate and plans of further reduction.

Shareholders were also encouraged to buy more shares to add up to their shareholdings to provide rural banks with a solid foundation, and put in their maximum to payback their loans on time to strengthen the financial capabilities of their banks.