A financial economist and Senior lecturer at the University of Ghana Business School, Dr Lord Mensah has stated that mitigating lapses in our banking system to gain customers’ trust is mainly dependent on how the current mishaps in the sector are handled and resolved.
He suggested that until properties of individuals responsible for the current banking crisis are confiscated and such persons are possibly shamed the trust in the banking sector cannot be restored.
Speaking as panel member at the maiden edition of NiBS Breakfast meeting themed “Rebuilding Trust in Banking and Financial Service Industry in Ghana”, the financial economist stated that the manner by which the current banking crisis is being handled will have a ripple effect on future occurrences. Further, if people are not made to face law publicly for offenses, customers’ trust in the banking sector will keep dwindling.
He also advanced that, clear cut punitive measures should be outlined in the Banking Act for individuals in high positions, and enforced when necessay to serve as deterrant to others from engaging in activities that will negatively affect banks. Such policies should be intentionally publicised to the general public, particularly through avenues that will reach the informal sector. Activities that will ease anxiety in the informal sector will help build confidence in the banking sector.
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“It’s about time we make the public to know that these are the level of punishment for anyone in the banking sector who breaches the law. Corporate governance should not remain in the lecture halls.”
He further stated that lack of information from banks to individuals also plays a role when it comes to customers trust in a bank. He therefore called on banks to, as a matter of urgency budget for financial education aside the usual corporate social responsibility to educate customers on their activities and products through short videos in the media.
