The former Chief Executive Officer of the defunct UT Bank, Captain Kofi Amoabeng, has hinted at the possible return of the popular ‘Loans in 24 Hours’ service.
Speaking in an interview on PM Express Business Edition, the seasoned entrepreneur stated that while the concept remains relevant to addressing the financing struggles of entrepreneurs and startups, its revival will depend on several critical factors.
“Many entrepreneurs and startups are struggling to secure short-term funding from banks,” Captain Amoabeng remarked.
“These are some of the reasons why I think we may have to come back, but it will still be dependent on a lot of factors,” he added.
The ‘Loans in 24 Hours’ initiative was one of UT Bank’s flagship services, offering expedited financial solutions to businesses and individuals. The service earned widespread acclaim for its efficiency and accessibility, but its closure in 2017 following the collapse of UT Bank left a significant gap in Ghana’s financial sector.
Reflecting on the closure of UT Bank, Captain Amoabeng questioned the approach taken by the Bank of Ghana (BoG) in revoking the bank’s license. He insisted that UT Bank could have been saved with the right measures, adding that the closure led to over 2,000 people losing their jobs.
He further challenged claims by the Governor of the Bank of Ghana, Dr. Ernest Addison, who suggested that the license revocation was a requirement of the International Monetary Fund (IMF) before Ghana could access funds.
Captain Amoabeng described this justification as questionable and emphasized that the collapse of the bank had far-reaching consequences for employees, customers, and the financial sector as a whole.
In highlighting the challenges entrepreneurs face in accessing funding, Captain Amoabeng noted that many banks remain hesitant to support startups and small businesses with the kind of short-term loans they require.
He stressed the importance of bridging this gap, adding that innovative and accessible financial solutions like ‘Loans in 24 Hours’ could play a crucial role in fostering entrepreneurial growth in the country.
He, however, acknowledged that a potential comeback will require careful evaluation of the current financial environment, regulatory considerations, and market demand.
With Ghana’s financial sector evolving and more entrepreneurs calling for accessible funding options, the possibility of a revival of ‘Loans in 24 Hours’ offers hope to many.
However, as Captain Amoabeng emphasized, such a move would require strategic planning and alignment with the current economic climate.
