Dalex Finance to establish ‘virtual banking’ Featured

Jan 18, 2017

The Chief Executive Officer (CEO) of Dalex Finance and Leasing Limited, Mr. Kenneth Kwamina Thompson has hinted of the company’s plan to “grow Dalex Finance into a Virtual Bank.”

Per Mr Thompson, the company’s strategy is to set up the first Virtual Bank in Ghana which he noted will be a departure from traditional banking operations.

“We intend to grow our business and if that leads us into becoming a bank so be it; but we are projecting that within four years Dalex Finance should be at least 20 times bigger, in terms of assets, than it is now,” Mr Thompson said in an interview with this paper.

He disclosed that if the company became a bank, it would move “to a system where all the transactions of the bank would be done online and there will be no physical branches. By eliminating the costs associated with bank branches, the Dalex Bank can make significant savings which it will pass on to clients via higher interest rates and lower service charges”.

He revealed that in 2017, the company will focus on developing products which would be delivered through technology.“ There will be no difference between the products and the technology,” he added. The Dalex CEO stated that these products will be marketed and distributed using the fast-moving consumer goods (FMCG) model. Dalex has applied this model successfully to its salary loan business.

He admitted that due to the severe challenges with the Ghanaian economy in the last three to four years, Dalex revised its strategy. Mr Thompson noted that “the SME sector has collapsed and Government is ‘broke’. We downsized our SME department and focused on salary loans to public sector workers. In three years, at #7, Dalex is now #1 in new loans to public servants”

In its bid to provide extended financial services to the public, with better returns and  long term funds to support its business, Dalex Finance launched SWIFT (Safe Wise Investments for Tomorrow), in August 2016.

The product provides a convenient and easy way for ordinary Ghanaians to save using their mobile phones. This can be done either through the SWIFT App or via USSD by dialing *721#. The minimum deposit is GH¢1.00. Clients can pay by transfer from their mobile money wallets or bank accounts. SWIFT is supported by a 4 language, 22 seater Call Centre that can be accessed by dialing 721, all networks.

Per Mr Thompson, even though the company was yet to meet its targets, SWIFT had been successful. Mr. Thompson said “SWIFT gives you confidence by allowing you to make regular contributions into a secure investment account. It now has over 23,000 clients”.

Credit: The Finder