Speaking on the theme, ‘Capital Unlocking and Standards to Deliver Automotive Industrialization and Transformation’, Mr. Asomaning addressed some challenges facing the banking sector in Ghana, particularly in providing financial facilities to individuals to acquire assets. He explained how data analytics and the adoption of nontraditional sources of information can assist banks in providing more efficient services to their clients. He said

“I believe that the use of the Ghana Card as the sole means of identification for prospective borrowers will bring down the cost of credit. Non-performing loan ratios in banks are quite high and are currently inching towards 20%. It is refreshing to know that there are few emerging firms that use data analytics to help banks credit score applicants. These are companies that use consumer habits such as your purchase of phone credit or the use of mobile money for transactions. This, if becomes the norm, would indeed help banks to make more accurate and informed credit decisions, improve risk assessment, streamline the lending process, and extend credit to a broader range of applicants beyond salary earners,”

 The high cost of finance and limited access to financial services act as formidable barriers to economic inclusion and sustainable development. Home loans and auto loans are two of the most common forms of consumer credit in most parts of the world.  But the cost of finance is increasingly growing, that is why most people invest in second-hand vehicles to meet their aspirations of owning a car.

According to the Stanbic Bank CE, it has become very crucial for banks to invest in data analytics to make the credit process more agile and efficient - from legitimizing a new customer to evaluating the creditworthiness and optimizing the complete credit check process.

Kwamina Asomaning further shared that Stanbic Bank and its parent bank, Standard Bank Group, are excited to be associated with the Automotive Assemblers Association of Ghana (AAAG) initiative as it strongly aligns with the purpose of the Standard Bank Group.  

He said, “Africa is our home, we drive her growth and any endeavor that drives Ghana’s growth fits directly into our purpose. As a bank, we are very excited to see the AAAG initiative launched, after years of active discussions for an assembling plant in Ghana. Stanbic bank has been keenly involved in financing automotive operators in the country for many years; we are even more poised to continue offering our services to support the AAAG in their operations.”

The automotive industry plays a crucial role in driving economic development by creating jobs, stimulating economic output, promoting technological advancements, fostering innovation, facilitating international trade, and contributing to infrastructure development. The maiden Ghana Automotive Summit 2023 was organized to bring together experts and industry professionals in the sector to discuss the latest trends, challenges, and opportunities in the automobile industry. The summit will concurrently run along an exhibition of over 20 vehicle models locally assembled in Ghana by members of the AAAG. The AAAG membership includes Volkswagen Ghana, Japan Motors, Rana Motors, Kantanka Automobile, Silver star Ghana, and Stallion Group Toyota-Tsusho Company. Associate members are Toyota Ghana and CFAO Motors Ghana.