Cape coast: The Ghana Co-operative Credit Unions Association (CUA) has urged Ghanaians to embrace digital technology to improve access to financial services and foster financial inclusion. Reverend Joshua Akwetteh, the Head of Development Services at the Association, highlighted the transformative impact of technology on financial services, emphasizing the need for credit unions to enhance their digital capacity.
According to Ghana News Agency, Rev Akwetteh stressed the importance of members improving their technological knowledge to fully utilize modern financial services. He stated, "All the financial services that cooperatives or microfinance institutions are providing are technology driven, and so we encourage them to also upgrade themselves in terms of their knowledge in technology to advance the inclusivity we are all seeking."
Rev Akwetteh made this call during the 30th Annual General Meeting of the University of Cape Coast Co-operative Credit Union, where stakeholders gathered to review the Union's performance, promote accountability, and chart a future course. He noted that the Association had introduced technology-based products and services, allowing members to conduct business without visiting credit union offices. This initiative aims to make transactions faster, more convenient, and accessible from any location.
The Reverend also pointed out the importance of responsible borrowing for the sustainability of credit unions, urging members to honour their financial obligations. Citing Psalm 37:21, he reminded members of their moral responsibility to repay loans, cautioning that defaulters would face creditworthiness challenges. He expressed optimism about ongoing reforms by the Bank of Ghana, including linking credit unions to a credit bureau, which could enhance loan recovery.
Mr Vincent Yamoah, CEO of the UCC Credit Union, reported significant growth in total assets and membership, attributing the expansion to the establishment of new branches. However, he acknowledged challenges with loan repayment, especially following the union's expansion beyond the UCC community. He noted that members outside the university posed higher repayment risks, with many defaulting on their obligations.
Mr Yamoah explained that the union had tightened loan security measures to address repayment issues, despite some complaints. He emphasized the need for a balanced approach to ensure a win-win situation for both the union and its members. On compliance, he stated that regulatory compliance was a top priority as the Bank of Ghana prepared to oversee credit unions.
Mr Theophilus Attram Nartey, Board Chairman of the UCC Credit Union, celebrated the union's selection by the Bank of Ghana for licensing as a major milestone. He announced the introduction of the Golden Pension Plan, an intervention to enhance members' retirement income through regular contributions. Unlike regular savings, funds from this plan would only be accessible six months before retirement, ensuring financial comfort during retirement.