Leverage digital platforms for easier access to credit — CBG MD to SMEs

THE Managing Director (MD) of Consolidated Bank Ghana (CBG), Daniel Wilson Addo, has advised small and medium enterprises (SMEs) to adopt digital platforms to enhance their cash flow visibility and improve their chances of accessing credit.

He said digital platforms could offer greater transparency in transactions, which reduces the risk for banks and simplifies the process of securing funding for business growth.

“SMEs are the backbone of our economy, but the challenge is that technology is either not readily available to them or they are unaware of its potential.

“The growth of payment and collection platforms in Ghana has made it easier for SMEs to manage transactions digitally. When banks have complete visibility of cash flows, it de-risks lending and provides businesses with easier access to finance,” he said.

Mr Addo was speaking to the media on the sidelines of the bank’s Thought Leadership Event on the theme: “Harnessing Emerging Technologies for SME Growth” in Accra last Thursday.

The event brought together stakeholders, regulatory institutions, FinTechs, SMEs and policymakers to explore innovative solutions and shape the future of technology for SME growth in the country.

Initiatives

The MD highlighted CBG’s initiatives to support SMEs, including the establishment of an SME Centre that offered advisory services and a "Smart Advance" loan product tailored for short-term financing.

He added that the bank was also working on launching a virtual SME marketplace to help businesses expand their reach and boost sales through digital channels. 

Mr Addo further stressed that businesses must take advantage of emerging technologies, highlighting the importance of using platforms such as Instagram and YouTube to market their products and services to a wider audience.

“By leveraging these tools, SMEs can increase their chances of obtaining credit from financial institutions, as well as enhance their overall growth potential,” he said. 

The Chief Executive Officer (CEO) of Heritors Labs Ltd, Derrydean Dadzie, emphasised the importance of SMEs adopting effective strategies to ensure that their digital marketing investments deliver measurable returns.

He outlined key steps that businesses could take to assess their return on investment (ROI) and optimise the use of technology.

He stressed the necessity of clearly defining the problems a business was trying to solve before adopting any technological tools.

“If you don’t define your problem well and bring in the wrong technology, failure is inevitable," he said.

He also urged businesses to seek expert advice when determining which digital tools best fit their needs rather than relying solely on brand names.

"Underutilisation is a widespread issue, even among banks and big corporations, to ensure ROI, it’s vital for companies to not only resolve their immediate problems with the technology but also continuously refine their processes and business models based on insights gained from active usage,” Mr Dadzie added.

For his part, the Programme Manager for Enterprise Support and Trade in Finance at the National AfCFTA Coordination Office, Divine Kutorste, said technology was no longer a luxury but a necessity for the future.

He added that emerging technology was a game-changer that every business should embrace.