Banks in Ghana are developing innovative means aimed at collaborating with schools in the country to facilitate the payment of school fees.
The move is gradually growing, with more banks placing advertisements in daily newspapers urging students and parents to pay fees through special accounts created by the banks for these schools.
Speaking to Citi Business News the Customer Services Manager for the GCB Bank, Muniru Muktar stated that the move is not necessarily aimed at increasing liquidity but a response to solve challenges associated with the bank draft system.
According to him, the bank draft system was cumbersome and took a lot of time to complete.
“If you understand what bank drafts do, you will have to go the bank’s branch and buy this draft and then go and present it to the school and the school will also compile and pay at the bank into their account. This takes a lot of time,” he said.
Mr. Muktar explained that the new system of creating a special account for schools removes all unnecessary processes, adding value to operations of the bank.
“When schools reopen and the bank draft system is used, you will see long queues in the banking hall because the bank draft system requires a lot of steps,” he said.
He however pointed out that the new system allows the schools to access the list of students who have paid school fees just from a click of a button.
“With this system with a click, the school is able to know how many people have paid their school fees. The old system is not like that,” he said.
He stated that it also enhances the financial report of the schools since every transaction is accurately captured and immediately relayed to the schools’ system
“Another important feature about this platform is that it allows parents to make part payments. Some of the schools make arrangements with us and allow the parents to make part payment,” he said.
Interaction with students
Some students who interacted with Citi Business News stated that the new system is convenient and allows students to pay school fees with ease.
“The system where you pay your fees straight into the school’s account is convenient and fast. This system is fast and reduces the long hours we spend at the banking hall,” a student said.
Another student stated that some banks provide rewards such as mobile airtime and exercise books for paying through the system.
Move to encourage it
Meanwhile, Banking consultant and Head of the Osei Tutu II Centre for Executive Education and Research, Nana Otuo Acheampong was of the view that the development does not necessarily mean banks are desperate for deposits hence they must be encouraged.
“Definitely this is a good thing. If you can pay your school fees through a special account, I think it is good for the banking industry. We must encourage it and applaud the banks for bring up such innovative products,” he said.
He maintained that it is important to urge the banking sector to develop innovative means to solve modern problems.
By: Lawrence Segbefia/citibusinessnews.com/Ghana