Our customers, our success says Bond CEO

From 2008 when BOND commenced operations as a finance house and acquired a savings and loans licence in its fifth year of operation, the company is now a household name in the industry. Our Editor, Theophilus Yartey had a chat with the CEO of BOND Savings and Loans Limited, Mr. George Ofosuhene on the critical success factors of the company, and the outlook for the future. 

Below are excerpts

GB: The banking industry and the financial sector in general has been impacted negatively, if you look at last year for instant the general economic environment affected it in a way. How did Bond fair last year?

Last year was really a difficult year for most financial institutions in Ghana. We would not deny the fact that we also felt a bit uncomfortable as far as our operations are concerned. But then, we would not say that we did not do well, I think BOND did quite well. 

Profitability was a little higher than what we achieved in 2014. We were able to grow our demand deposits by 200 per cent and that is quite significant. To be able to increase our demand deposits means we were also able to increase our customer base. 

Our balance sheet also grew by about 15 per cent, which was the result of some initiatives that were developed during the year. We also maintained a very good posture as far as our risk assets are concerned. 

GB: What were the main drivers of this success, in terms of core values?

The quality of the human resource at the Board and Management level as well as people in every role across the entire organization has been a very important driver of how far we have come a s a company. 

Secondly, our preoccupation has been to constantly look at what will delight our customers at any given point, once that is done, we move heaven and earth to execute and deliver.

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BOND has also made it a point to reduce the gap between planning and actual execution.  The language we speak here is execute, execute, execute.

We have focused a lot on brand quality and also developed new and innovate ways of doing things driven by our customer demands. 

We have also leveraged on technology over the years to deliver our products and services

GB: Once you operate successfully as a savings and loans company, the natural progression is for you to get a universal banking licence to operate. 

Our focus is clear, what and where we want to be in the next five years has been determined. Having acquired the capability to offer services akin to banking, the next move will be to acquire Universal Banking status. BOND, we see ourselves growing stronger, taking a major position in the market, improving on our profitability year on year, returning good return to our shareholders and delivering value to our customers through technology and superior customer service. So plans are far advanced to operate as a universal bank

But for now, we are focusing on being the best in the savings and loans industry, and we believe that by the time we move towards that we will be in a solid position. 

GB: Recently a number of microfinance companies went through some challenges. Even though Bond did not fall into that category, did those  perceptions and experiences affected you as a company that deals with people’s funds?

I think that what happened in the microfinance sector cannot be ignored. It is not a problem for only financial institutions but a problem for the country as a whole. You will agree with me that many who were affected are the vulnerable in society, and the perception that has been created goes beyond what we can talk about now. 

It did affect us, not in the sense of we having a reduction of business, we had to go out there to conscientise our customers. People will look at all NBFIs as microfinance institutions. I had to personally educate some customers so we will all not be categorized as MFIs. 

Directly, we did not have any level of deposits leaving us because of this issue, but the general perception out there had to be addressed to avoid having a certain categorisation that could potentially affect our business.

GB: Do you have special interest in Small and Medium Enterprises (SMEs)?

Yes, we do have a special interest in SMEs. The bulk of the companies operating in this country are SMEs, if you take out the blue chip corporate organisations. There are no proper structures that have been put in place for the management of that as a country. So every institution has to develop its own institutions to manage it. 

Some of the SMEs have higher risks because of the way they manage their own businesses. We have put in structures to make sure that we drill all the way down to their level, understand the way they operate and provide services to meet their needs. We are doing well as far as this is concerned. For us, it is about developing them to become solid as far as their businesses are concerned. 

GB: You increased demand deposits by 200 per cent. How did you do it?    

We set ourselves in this industry to actually expand our base as far as demand deposits are concerned.  We put together a strategy that helped us drill deep into the area. We organised a raffle that attracted a lot of people, we had roadshows, and went to places where people are very active when it comes to current account operations.

We wanted the business community to realise that, there was a new entrant that could serve them better and ensure that they are satisfied. Because of the fact that we had been a successful finance house over the years we had already develop a clientele base and that presented us solid the platform as foundation. 

We pride ourselves in the fact that we make it a point to understand what our customers want. Once you understand that, you will be able to fully satisfy the customer’s needs. We have ambassadors on the road that are tasked with continuously sending our message to the business community. Customer service is paramount in all our dealings. 

GB: How is technology impacting your operations?

It is actually the bedrock, and even though we are providing banking services, we are not spread all over the place. We believe in the fact that banking is no more where you go, but what you do. So it is important we make it convenient for the customer to do business anywhere. 

Technology is one of the things we focus our attention on. We have a robust system that makes it possible for us to provide services that any company will require as far as banking is concerned. We have a very active and interactive website. You can go through the process of acquiring a loan on our website, and open account right through the interactive medium on the website. 

We have internet banking and that is one of the key things we provide, a customer has the ability to view his or her account without having to call anybody. At the branches, we have ATMs and the purpose is to drive people away from the banking halls.  We have a facility that makes room for mobile payment and mobile banking services in collaboration with the telecommunication companies. For me it is important that my customers become comfortable, banking shouldn’t be a headache. Your time must be used in developing your business, so that we BOND can benefit from the value that is created in the process. 

GB: We are in an election year, and this is expected to impact businesses. What do you make of it?

I think that we cannot overlook the fact election years in this country present challenges. And it is because of the fact that there is a certain level of discomfort which creeps into our system because of the nature of politics we in this country. It is a bit too aggressive and high in terms of tempo. I  believe that we can go through the process without having to worry about what will happen. 

At the end of the day, we are only making a decision on one ideology from the other. We are one nation and one people but we tend to escalate it and that affects businesses. My advice to businesses is that don’t be too worried about the fact that this is an election year. Don’t take money out of the banks and go and put it somewhere because you think there will be trouble. We will go through this period, and the country as a whole will benefit. 

GB: Please provide a brief profile of yourself and your leadership style.

I am a banker and I love banking.  I have been doing it for the past 30 years. I used to work at Universal Merchant Bank in very early days in the 80s. I joined the group that set up Meridian BIAO which turned into the Trust Bank and was later taken over by Ecobank.  

Then in 1995, I joined the group that set up First Atlantic Merchant Bank, which has now become First Atlantic Bank. I was there as one of the pioneers and I worked for 12 years and at the time I was leaving I was the Executive Director in charge of Corporate Banking. 

In 2008, I also joined the group that set up BOND as a finance house. As CEO, I have to make sure that the reason for which it was set up would be realised. I love to develop leaders, so people can wake up every day and come to work feeling that they are coming to contribute to something that is moving forward.