Managing Director of Consumer Finance Business, afb Ghana, Arnold Parker, has said, data analytics is key in reducing Non-Performing Loans (NPLs) by banks and other financial institutions.
Speaking to the Goldstreet Business on the debt recovery strategy of afb, a member of the Letshego Group, Mr. Parker explained that the company has built a strong credit history of every customer and that curtails the possibility for customers to default.
“People find value in the loans we give out and that enables more customers to access extra when the loans are paid on time. Data is very key in what we do in ensuring that customers don’t mess up credit profiles,” he explained.
Current NPLs statistics
Non-Performing Loans in the entire banking sector has reached GH¢8.74 billion in June this year, according to BoG’s recent banking sector report.
The report indicated that since April this year, the figure has seen a sharp increase by some GHS11 million. From April 2017 to April 2018, NPLs have increased from GHS7.1 billion to GHS8.63 billion.
Arnold Parker however said, “It is imperative for banks and other financial institutions to have accurate data in order to make informed decision on how to analyze customers in a less risky manner. That can go a long way to reduce NPLs.”
He said it was important for government to also pay contractors in order to relieve to the banks, adding, “at the retail side, the sector will work more on data analytics to reduce NPLs.”
afb’s one million customer celebration’
Mr. Arnold Parker, speaking at an event to mark afb’s one million customer reach, said afb has so far disbursed over GHS700 million to one million customers.
“One million customers, that is about 10 percent of the adult population of this country and that is very exciting for us”, he reflected.
afb currently offers a loan limit of GHS1, 000 to individuals and SMEs, payable over a month. The company indicated the tenure for repayment would be stretched to a three-month period and subsequently increased to GHS2, 000.
Deepening Ghana’s financial inclusion agenda
The feat has been touted by the business as remarkable in contributing to the country’s financial inclusion agenda of widening access to finance for individual and corporate businesses.
Letshego Group CEO, Smit Crouse maintained that the company has seen some success in the shortest time due to its tailored-made services.
By Wisdom Jony-Nuekpe