RE: “Why are banks closing branches?” (The New Times, March 29).
Any lesson to learn from non-performing branches of commercial banks? What is at stake? Who bears the cost of such discussions if the account holder is made to deal with Muhanga instead of Ruhango?
Any measures to manage customer frustrations from such closures? Do banks often remember all the “enticing words” said while wooing new customers?
All these questions are made to clarify one question: who pays for damages relating to closures of such branches of banks?
Last time when microfinance institutions betrayed customers, unfortunately the government “nursed these wounds” and hitherto, the burden is still on government. This time, who is going to shoulder these closures?
On profitability, I wish to advise commercial banks that this can be managed by improved customer care.
If Umurenge SACCO can make it from scratch, why not commercial banks?
More facilitation to branch managers to reach customers, visit them and plan with them in their bankable projects, you need to forge partnerships with local government in order to unlock enormous potential within our rural people.
Do not ignore investment in financial literacy, this will bring improved financial inclusion and banks will not opt for “Plan B”.
A more modest way is planning for Plan A+, otherwise closures of branches to me seem betrayal to our common cause: poverty eradication. Again, MTN Mobile Money, Tigo Cash as well as Airtel Money should inspire commercial banks to bring financial services deeper into the rural areas.