Consolidated Bank Ghana: History and Future Prospects

Consolidated Bank Ghana has a rich history dating back to 1964, when it was established as a commercial bank to provide financial services to the Ghanaian market.

The bank's early years were marked by significant growth and expansion, with a strong focus on serving the needs of small businesses and individuals.

In 2018, Consolidated Bank Ghana was established through the consolidation of five struggling banks in Ghana: Beige Bank, Heritage Bank, Royal Bank, Sovereign Bank, and UniBank.

This consolidation was a strategic move to create a stronger and more stable banking institution in Ghana, with a wider range of financial products and services to offer its customers.

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In September 2017, the Bank of Ghana directed all universal banks in Ghana to raise their minimum capital reserves from GHS:120 million to GHS:400 million. This led to the merging of five banks that failed to meet the requirements.

The five banks that were merged were Construction Bank, TheBeige Bank, The Royal Bank, UniBank, and Sovereign Bank. Their banking licenses were eventually cancelled on August 1, 2018.

The Government of Ghana issued a bond worth GHS:5.76 billion to retire the debt of the insolvent five banks. This bond was worth US$1.2 billion.

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In September 2017, the Bank of Ghana directed all universal banks in Ghana to raise their minimum capital reserves from GHS:120 million to GHS:400 million.

Five banks, Construction Bank, TheBeige Bank, The Royal Bank, UniBank, and Sovereign Bank, failed to meet the minimum requirements and were subsequently merged.

The merged banks had committed regulatory breaches that made it impossible for them to operate as banking institutions.

On 1 August 2018, the banking licenses of the five banks were cancelled, and their assets and selected liabilities were merged to form Consolidated Bank Ghana Limited.

Their boards and senior management were also fired.

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Recapitalization was a crucial step in Ghana's banking sector recovery. The government issued a bond worth GHS:5.76 billion (US$1.2 billion) to retire the debt of the insolvent five banks.

This bond was a significant financial move, allowing the government to take control of the banks' debt and pave the way for their eventual recapitalization. The government availed Consolidated Bank with GHS:450 million (US$94.76 million) to serve as reserve capital.

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Consolidated Bank Ghana has a robust bank operations system in place.

The bank operates a 24/7 electronic banking system, allowing customers to access their accounts and perform transactions at any time.

With over 4,000 agents across the country, customers can also conduct transactions through the bank's agency banking network.

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Consolidated Bank started with 148 branches in nine regions of Ghana. These branches were all part of the five defunct banks that the Bank of Ghana took over.

The bank's initial branch network was extensive, covering a wide geographic area.

By October 2019, the number of branches had been reduced to 114.

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CBG is an indigenous bank wholly owned by the Government of Ghana, with a staff strength of over 2,300 employees. It's the second largest bank in Ghana by branch network.

The bank has a clear ambition to become the leading SME Bank in Ghana and the West African Sub-Region, leveraging technology to grow its market share and presence. This goal is reflected in its three main lines of business: Wholesale Banking, Retail & Business Banking, and Global Markets.

CBG offers various personal, business, and digital banking products to its customers, including remittance, payments and collections, bancassurance, and investment services. These services are designed to be easily accessible through digital channels.

The bank's digital services are built to cater to all financial and banking needs, with e-bundles, cards, and other solutions available with just a tap, swipe, or click. This focus on digital banking is a key part of CBG's strategy to support the country's SMEs and drive economic growth.

CBG is also setting up SME centres across Ghana to cater to the financial needs of small and medium-sized enterprises. These centres aim to incubate SME businesses with modern practices supported by technology, create sustainable partnerships, and increase employment opportunities for the youth.

The bank has been revamping its technology infrastructure and implementing a new technology reference architecture in the last two years. This project is nearing its end, with the final phase being an upgrade of its mobile and internet banking platforms to give customers a better experience.

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Consolidated Bank Ghana has a strong management team that has been instrumental in the bank's growth. The bank's management team has a proven track record of success, with many years of experience in the banking industry.

The bank's growth strategy focuses on digital transformation, with a significant investment in technology to improve customer experience and increase operational efficiency. This has enabled the bank to offer a wide range of innovative products and services to its customers.

The bank's commitment to growth has led to a significant increase in its customer base, with a strong presence in both urban and rural areas. Consolidated Bank Ghana is well-positioned for continued growth and success in the Ghanaian banking market.

Consolidated Bank Ghana has denied reports that the bank has been sold to a foreign entity.

The bank's management insisted that the Government of Ghana still remains the sole shareholder of the bank.

These reports are entirely false and misleading, according to the bank's statement.

The bank will continue to abide by the banking rules of the country and protect funds and monies of customers.

The bank reassured customers that their funds are secured with the bank and urged the public to rely on the official communication channels for any information.

The Ministry of Finance is not aware of any transactions to dispose off government's interest to any foreign entity.

CBG has seen a tremendous rise in mobile money transactions on its networks as a result of the COVID-19 pandemic.

The bank has entered into partnerships with telcos to offer mobile loans through their platforms, such as the launch of Vodacash with Vodafone Ghana in June.

CBG's USSD sign-ups have increased by over 500 percent since 2020, allowing users without a smartphone or data/internet connectivity to access basic banking services.

The bank has also seen transactions carried out at its branches decrease from 80 percent to 40 percent of the bank's total transactions.

CBG's digital platforms are fast and robust, providing 24/7 support services to customers.

The bank's Loyal Management System application will measure loyalty based on the consumption of its services, rewarding repeat customers with points, virtual gift cards, and coupons.

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Consolidated Bank Ghana offers a range of financial services to cater to different customer needs.

The bank provides current accounts, savings accounts, and fixed deposit accounts, allowing customers to manage their finances effectively.

Personal and Business Loans are also available, enabling customers to access credit for various purposes.

With a wide network of branches and ATMs, customers can easily access their accounts and conduct financial transactions.

The bank's mobile banking service allows customers to perform transactions, check account balances, and pay bills from the comfort of their homes.

Consolidated Bank Ghana's online banking platform provides customers with a secure and convenient way to manage their accounts and conduct financial transactions.