Western Union offers 80% of commission to Ghana rural banks
The Rural and Community Banks (RCBs) would receive 80 per cent of the commission they collect from the Western Union International Money Transfer (WUIMT), by March 2010, to inject efficiency in their operations.
Cash on demand would also be supplied to the banks to enable them make prompt payment to WUIMT customers.
Mr Eric Osei-Bonsu, Managing Director of ARB Apex Bank Limited, announced this, at the weekend in Accra, at a meeting organised for its frontline staff and supervisors to enable them tackle the challenges facing the bank in the payment of WUIMTs.
The meeting was aimed at mapping up strategies to increase the volume of money transfer transactions and the maximisation of profit.
Mr Osei-Bonsu observed that though volume and value of transactions increased by 200 per cent in 2008 and 255 per cent in 2009, which he said represented a mere three and five per cent of the Western Union Market share in the country.
The volume of transfers for 2008 stood at 32,912 as against the 96,307 gain in 2009, whilst value of transactions for 2008 was GH¢9, 726,949 with a leap to GH¢34, 617,066 in 2009.
“This is not encouraging enough if we consider the fact that the 360 locations of the RCBs and Apex Bank network form about 50 per cent of the total locations of all the Western Union agents in Ghana,” he said.
Mr Osei-Bonsu commended the frontline staff for their hard work but cautioned them not to be influenced by tips offered by clients.
Mr Arona Mousa Diarra, Regional Operations Manager for WUIMT, noted that more than one million transactions were made in Ghana and added that the huge volume of transactions created a platform for fraudsters to operate.
He has observed that eight per cent of transactions paid to customers in Ghana were unverified by the frontline staff and urged them to be cautious in confirming future transactions in order to reduce risks and losses.
The ARB Apex Bank in 2008, entered into business agreement with Western Union International to become one of the union’s agents in Ghana. This made it possible for the bank and all the RCBs to pay the WUIMT directly to customers without partnering with any other bank.
Source: GNA