Nana Dwemoh Benneh, the Chief Executive Officer (CEO) of the Universal Merchant Bank (UMB) has iterated the bank’s drive to focus on digital channels to promote growth.

According to the CEO of UMB, its focus is to empower Small and Medium Enterprises (SMEs) with digitization to promote growth and development of the economy.

Nana Dwemoh Benneh explained that its approach to digitization is called ‘DIGITALL’, which is comprehensive and aimed to encompass all sectors the bank operates in.

“The Bank had purposed to empower SMEs to achieve digitization for growth and development, while contributing to the economy.”
Nana Dwemoh Benneh

Nana Dwemoh Benneh pointed out that the bank has delivered impact, and it would continue in this tradition, since it evolved into a universal bank, “we have continued this tradition of innovation in Ghana.”

Nana Dwemoh Benneh disclosed that the bank is developing an exciting hub of platforms that will deliver world-class digital banking based on current digital innovations.

The CEO indicated that under the leadership of the Ghana Association of Banks and the Bank of Ghana, UMB has stepped up measures to ensure that the economy continues to recover. He said the recovery has become more imminent “as we can see that the quarter-one 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.”
Nana Dwemoh Benneh

Nana Dwemoh Benneh noted that the Bank’s deposits jumped to GHC 4.1 billion versus GHC 3.2 billion in the previous year, and that the bank has seen confidence from customers firmed up in 2023.

Nana Dwemoh Benneh indicated that the uptick in deposits could potentially drive positive interest income, as increased deposits could fund increased loan activity for businesses and individuals. “We have also seen income from our digital transactional platforms increase by double-digit percentage points,” he said.

Significant Increase in Non-interest Income

Nana Benneh opined UMB’s significant increase in non-interest income from 131 million in 2021 to 261 million in 2022 demonstrated the bank’s success in diversifying its revenue sources.

The CEO noted that diversification is a critical strategy for banks to mitigate the impact of declining net interest margins in a highly competitive market amid high inflation and rising costs of doing business.

The CEO Indicated that the impressive growth in fees and commissions, trading, and other income suggested that the Bank had been successful in expanding its operations, developing new products and services, and creating additional revenue streams.

The CEO noted that such achievements bode well for the bank’s future profitability, as a broader revenue base would help offset the challenges from declining net interest margins on interest-earning assets and position the bank well in the market to build a sustainable future. “Overall, we also saw growth of GHC 333 million in our total asset value,” he added.

Nana Benneh made this known at a thanksgiving ceremony as part of activities to round-off the Bank’s Jubilee celebrations.

The Bank, founded as a policy bank in 1972, has since March 15, 2022, been celebrating its 50th anniversary with several events.