uniCredit and the story of microfinance in Ghana

In the early 1900’s we witnessed the introduction of a new credit scheme called Susu. This originated from Nigeria and became popular in Ghana where the practice for people to take loans from individuals for personal or business reasons was thriving.

The microfinance sector has over the years evolved into its current state due to implementation of various financial policies, regulations and framework. Rural and community banks are regulated under the Banking Act 2004 (Act 673). Savings and Loans are legally regulated under the Non-Bank Financial Institutions (NBFI) Law 1993 (PNDCL 328).

What are microfinances? They are business which provide financial services and manage small amounts through a range of small products. And also through a system of intermediary functions that are for low income clients. This includes insurance, savings, loans, transfer services and other financial products and services.

uniCredit Ghana Limited, a non-bank financial institute was launched by the Finance Minister in 2009. Formerly known as Kantamanto Savings and Loans Company Limited has been operation since 1995 but considered the name change in 2007. It currently has twenty-five branches across six regions, where ATM’s and Saturday banking are available.

Since its inception uniCredit has proved to be the first of its kind in the industry. Its leap in business growth has placed it on the list of Ghana Club 100. Which serves as a guideline for investors looking to invest in Ghana. The company’s core values used as measuring tool for the delivery of their services are fiercely on top of their game. They aim not to only offer financial services at an institutional level but by providing capital to the poor to combat poverty. It seeks to deliver financial support to the poor who are constantly ignored by the big banks. This action is in the right direction as the alleviation of poverty is a development goal and can facilitate the achievement of Millennium Development Goals (MDG’s).

In 2014, uniCredit invested 1.6 million in developing its IT infrastructure to deliver top notch customer service. This development included mainly centered on electronic banking saw new additions such as Visa Card, ATM services, SMS alerts among other electronic banking products/services. Staff was also trained in order to better manage and keep abreast of the T24 IT platform which the bank is currently running on. In 2016 it picked the Best Enterprise by the European Business Assembly (EBA) at International Socrates Gala Ceremony.

Over the years, uniCredit has provided Business Advisory Services, Financial Planning, Business Planning and Cash Flow Forecast for micro, small and medium enterprises (SME’s). A product such as Adamfo (U- trade loan) is designed to offer loans to traders especially those engaged in buying and selling, and which is a key driver of women empowerment. Not forgetting the legendary making saving practice, susu. Susu allows the client to make a daily deposits of their choice which is a minimum of GHC 2.00 for their personal needs. And after 3 months they are eligible for a loan for their business.

The provision of hassle free loans has facilitated the growth of SME’s and overall a significant growth in the economy. unicredit has helped start and sustain many small and medium businesses in Ghana with their accessible loans called u-Cap (Dwetire) and better loan replacement rates. This has led to the creation of jobs and improved the local economy. With rippling effects on our health care, welfare and education. U-Kid account (Mmofra Yiey3) is geared towards securing the future of our children.

RATING

8/10. uniCredit Ghana has been and continuous to be a great addition to the finance industry of Ghana.

CREATED BY

Samuel Sakyi-Hyde