The role of rural banks in promoting financial inclusion of individuals in Gomoa West District

Abstract

The purpose of this study is to examine the role of rural banks in promoting financial inclusion among individuals in the Gomoa West District of the Central Region of Ghana. The research objectives that guided the study were as follows: to examine the specific financial products and services offered by rural banks in the Gomoa West District, to investigate the level of financial literacy and awareness among individuals in the district, and to determine if rural banks are actively engaged in financial education and awareness programs in the district. The study revealed that savings accounts, loans, and current accounts are the most utilized financial products by rural bank customers in the district, with mean scores significantly above the ground mean (3.24). However, despite the prevailing satisfaction of the financial services rendered, as expressed by 54.32% of surveyed respondents, there is a call for continuous improvement in rural bank services. Key areas identified for improvement included, wealth management services, educational loans, small business loans, savings accounts with higher interest rates, financial literacy and education programs, and mobile banking and online services, all scoring a mean above the weighted mean (3.44). Addressing these areas is deemed crucial for promoting financial inclusion, stimulating economic growth, and enhancing customer satisfaction. The findings of the study revealed that savings accounts, loans, and current accounts are the most used financial products, while mobile banking, insurance products, and remittance services are used less frequently. The study also indicated that a majority of surveyed respondents have a strong perception that wealth management services, educational loans, small business loans, savings accounts with higher interest rates, financial literacy and education programs, and mobile banking and online services are key areas for improvement to enhance financial inclusion services in the district, thereby stimulating economic growth and enhancing customer satisfaction. Additionally, the study revealed the necessity for rural banks to organize additional financial education programs to enhance financial literacy among individuals in the district. The findings also indicate that a majority of individuals lack sufficient financial literacy. In line with these findings, it is recommended that rural banks and other financial institutions in the Gomoa West District actively promote and organize financial education programs. These programs should be designed to enhance financial literacy, tailored to the specific needs and preferences of the target audience, empowering individuals to make informed financial decisions. Furthermore, efforts should be directed towards increasing awareness about the existence and availability of financial education initiatives. Rural banks and financial institutions can also leverage various communication channels to reach their customers and the broader community.