UMB focused on digital channels, strategy to deepen SME reach
The Universal Merchant Bank (UMB) recently held a Thanksgiving service at the ICGC Holy Ghost Temple as part of activities to round-off the bank’s jubilee celebrations.
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The bank, founded as a policy bank in 1972, has since March 15, 2022 been celebrating its 50th anniversary.
On the sidelines of the service, the CEO, Nana Dwemoh Benneh, engaged the Graphic Business in a question-and-answer.
The following is the interview between Graphic Business (GB) and Nana Dwemoh Benneh (NDB), the CEO of the Bank.
GB: How does it feel to be 50 years old and what is your message to your customers and the nation?
NDB: It is a humbling experience.
We are proud to be one of the surviving indigenous banks in the market, coupled with the fact that 50 years of sustaining a successful business in Ghana, is an achievement.
This is why we have embarked on this round of Thanksgiving to Providence, for seeing us through.
We reserve our greatest appreciation in this anniversary to our customers, a significant percentage of whom have been with the Bank for over 30 years.
We are grateful to each and every customer.
GB. What are some of the key highlights of your time banking in Ghana? Have you delivered impact ?
NDB. As you will recall, UMB was established as the Merchant Bank for Ghana, to push forward the agenda of helping Ghanaians seize the controlling heights of this economy.
We have largely delivered on that mandate.
UMB has been key to the thrive-in-Ghana story for many corporates in the country.
This is why perhaps we bank 35 per cent of all Cocoa LBC’s to date.
UMB was significant in the establishment of the Ghana Stock Exchange and in the 1970’s and 80’s we effectively handled all investment banking in Ghana.
We played significant roles in key floatations in this market, for example the famous Ashanti Goldfield floatation in the 90’s.
Many of the famous names in Ghanaian banking are alumni of the bank and we spawned institutions like the Home Finance Company that is now Republic Bank .
Clearly, we have delivered impact and we continue in this tradition.
Since we evolved into a universal bank, we have continued in this tradition of innovation in Ghana.
At this point we are developing an exciting hub of platforms that delivers world class digital banking to Ghana.
This is based on our current digital innovations- the UMB SpeedApp and UMB SpeedPay.
It has been an exciting 50 years, made possible by our PEOPLE- Staff, Partners and more importantly, Customers.
GB. It is interesting that you are undertaking this Thanksgiving in the financial release period for the banking industry.
The numbers are not encouraging - are they?
NDB. the Ghana Association of Banks has provided quite detailed and accurate commentary on the numbers which we support fully.
As indicated by the CEO of GAB, the 2022 numbers are not a cause for alarm as the trajectory of the numbers was anticipated and had been prepared for.
The key call-out from the numbers is the fact that the banking industry in Ghana, under the leadership of the Association and the Bank of Ghana has stepped-up to ensure that the economy continues to recover.
This recovery is becoming more eminent as we can see that the Quarter 1 numbers for the industry are positive.
In the case of UMB, our numbers had significant strong lines that are a testament that our medium - term strategic journey is on course.
For instance, our liabilities (deposits) grew to GHS 4.5billion versus GHS 3.4billion in 2021 and we have seen this confidence from customers firm up in 2023.
The uptick in deposits could potentially drive positive interest income, as increased deposits can fund increased loan activity to businesses and individuals.
We have also seen income from our digital transactional platforms increase in double digit percentage points. Overall,we saw a growth of GHS 790 in our total assets value.
Our analysis based on a total appreciation of the foregoing is to conclude that we are confident of recovery and growth in Ghana in 2023.
GB. Is the growth strategy for Ghanaian banking now digital?
NDB. Our research indicates that the Ghanaian banking industry still has massive headroom for growth.
Ghana remains the second largest economy in ECOWAS and regional integration efforts like AFCTA will bring up new business opportunities.
The census indicates that we have a huge youth bulge , who will continue to need banking services. Each bank thus has to play to its strengths to serve this market.
We are clear that a digital-led strategy will lead to sustainable and resilient growth for us.
To emphasize our ‘Ghanaianess’, we are undertaking a lot of these app and software developments in Ghana, and we are steadily building a bank of the future in the cloud.
We led the process of delivering an online platform for Ghana card linkages through our EZUPDATE product.
Today you can open an account at UMB in less the 20 minutes with almost no paper generated or required.
Our UMBSPEEDPAY omni-channel transactional banking systems allows any organization to generate a QR code, USSD , online and mobile payments on one platform.
We have seen this result in a 20%+ improvement in revenue collection for clients who sign onto the platform.
So digital is a key growth vector from our point of view , but there are other viable areas of growth for the entire industry.
GB. So where does your SME focus play here , considering your elaborate digital strategy?
NDB. Our SME focus is integrated into our developments on digital.
Indeed, a key plank of our unique selling proposition is to assist SME’s on the journey to digitisation, towards sparking growth.
UMBSpeedPay is a great example here .
On one platform, Aunty Mercy, a leading wax print outlet in Okaishie can receive all her payments, view and reconcile her accounts on her phone, see the sales hit her account and make statutory payments (tax,etc), buy FX and transfer to her suppliers in China and so much more without having to move from managing and promoting her shop.
Digital for us is ‘DIGITALL’ in all the sectors we wish to play in .
GB. Any final words for Ghana from UMB.
NB. Thank you for 50 years.
We promise to continue to strive and give you the best uniquely Ghanaian perspective on banking, since 1972.