The association believes embracing digital technologies and advocating supportive policies are crucial steps towards creating an inclusive financial ecosystem.

“Our association acknowledges the transformative impact of digital financial services in advancing financial inclusion. Digitalisation has expanded our ability to provide financial services to individuals in remote and underserved areas, offering lower costs, improved accessibility and enhanced customer experiences. 

We commend member Savings and Loans Companies for embracing digitalisation and encourage others to do the same, recognising its significant benefits. As Savings and Loans Companies, we reaffirm our commitment to promoting financial inclusion,” the Board Chairman of GHASALC, Kwame Owusu-Boateng, said.

He was speaking at the 14th Annual General Meeting (AGM) of the GHASALC in Accra last Tuesday on the theme: “Advancing Financial Inclusion for All: The Role of Savings and Loans.”

 Performance 

He explained there has been an improvement in the 2023 deposit mix compared to 2022, indicating that member companies were increasingly growing their deposits through Current Accounts and Savings Accounts (CASA), which have traditionally been cheaper sources of funds for the sector.

During the year under review, the association made a surplus of GH?1,963 as compared to last year's 2022 Surplus of GH?39,813. The association's net assets increased to GH?478,648 in 2023 compared to net assets of GH?476,685 in 2022. 

He disclosed that as of the end of 2023, members of the association collectively served more than 5.5 million customers with more than 7.7 million accounts.

“The total assets for the sector increased from GH?5.7 billion in 2022 to GH?7.6 billion in 2023, driven primarily by growth in loans and advances to customers from customer deposits. 

The sector's Gross Loan Portfolio also amounted to about GH?5.4 billion, with Services leading at over GH?3 billion, followed by commerce, trading, agric, fishing and manufacturing, respectively,” he said.

 
Challenges 

The Executive Secretary for GHASALC, Tweneboah Koduah, mentioned significant challenges for many savings and loans companies, as the sector encountered various issues that hindered operational efficiency and growth prospects. 

He said economic uncertainties, including inflationary pressures and currency fluctuations, had a profound impact on lending rates and overall financial stability.

Moreover, he said there was notable margin compression due to rising interest rates, affecting the financial performance of several member companies, adding that the sector experienced an increase in non-performing loans, partly influenced by the departure of mainly health workers and other public sector employees travelling abroad. 

“Some member institutions continue to face delays in refunding loans granted to government workers (Controller Loans), leading to customer dissatisfaction due to their inability to access credit from other financial institutions and liquidity constraints. These challenges have persisted throughout the year, causing significant operational difficulties,” he said.

Despite these challenges, Mr Koduah said member companies have demonstrated resilience through innovation, expanding their outreach and crafting tailored products and services to meet the diverse needs of both current and prospective customers. 

“I take this opportunity to encourage S&Ls to capitalise on the opportunities within the sector and stay resolute,” he added.