Credit Unions to Devise strategies for competition.

1/12/11
Credit Union (Finance)
Story: Alice Aryeetey
Credit unions have been urged to devise strategies to stay ahead of the competition they face from the formal financial institutions.
According to the Metro Director of Cooperatives Department, Mr John K.Nyarko, the competition should provide an impetus for credit unions to devise strategies to attain their targets which are being wooed by the formal institutions, in the fields of both urban and rural financial inter mediation.
He disclosed this at the 5th Annual General Meeting of the Associated Teachers Co-operative Credit Union Limited (ATCCUL) in Accra today(Thursday).
The ATCCUL, since its inception has had an aim of empowering its members by providing a means of self-help and mutual help, which would have a positive and lasting impact on the members’ livelihoods through improvements in their conditions of living, through savings and borrowing activities.
Mr Nyarko advised that credit unions adhere strictly to their lending policies. He stated that when members of the union borrow against their savings, and a charge is placed on such savings, such members are still allowed to withdraw their savings.
This, he said threatens the liquidity situation of credit unions and prevent the satisfaction of the needs of members in need.
According to Mr Nyarko, the empowerment of the members can be created only through the collaboration of the various players in the credit union industry. “There must be integration of our individual efforts in order for us to achieve our collective goal of life time benefits for each other”, he added.
He further stated that the union needs to stay in touch with the members and not become unspecified with growth in business and membership, because the members must derive tangible benefits in order to want to continue to belong to and sell the credit union idea to others.
The General Manager of Credit Unions Association (CUA), Mr Emmanuel Darko made said the social and economic waves blowing throughout the country calls for credit unions to sharpen their managerial and technical skills to be more competitive and be able to keep abreast with time.
He entreated all credit unions to examine the need to increase the capital base, profitability, and improve liquidity to be able to meet demand of members at the right time, and increase membership base.
Mr Darko advised members of the ATCCUL to examine their expenditure patterns, and learn how to use money profitably for the benefit of the next generation to come.
The ATCCUL, was formed in 1996 to help both teachers and the general public to gain resources from the union to reduce poverty and ensure a sustainable livelihood for their dependents through the co-operative credit union concept. The union currently have a membership of 1004, comprising of teachers, traders, and people from other business sectors.