He said the companies could thrive if they take advantage of digital revolution to build the capacity of staff.

Dr. Amediku was speaking at the seventh Annual General Meeting (AGM) of the Ghana Association of Microfinance Companies on the theme, ‘Re-positioning microfinance companies in the midst of digitisation; The opportunities and threats’, in Accra, yesterday.

He said technology offers financial service providers the opportunity to effectively serve the financially excluded with a “Customer-Centre” approach.

He noted that reducing operational risk through the use of technology can reduce risk and increase operational efficiency.

Although microfinance companies provide essential services in the financial sector, Dr. Amediku identified misuse of depositor’s cash, diversion of funds to unprofitable ventures, money laundering and terrorist financing as some challenges that confronted the sector.

He mentioned weak management, weak internal controls, poor documentation and record keeping, poor understanding and lack of appreciation of the concept of micro-credit and micro-savings as other challenges.

Mr. Joseph Kwame Donkor, the Executive Secretary of the association said microfinance companies continued to create jobs in the midst of challenges.

He said the association built and trained the capacity of its members, in the areas of leadership and governance, financial management, credit management, market research, microfinance operations and marketing.