ASSESSING THE ROLE OF ROTATING SAVINGS AS A MEANS OF FUNDS MOBILIZATION AND CREDIT SOURCING- CASE STUDY OF OTUASENKAN RURAL BANK LTD.

oai:ojs2.freeprojectwork.com:article/1The primary aim of this study was to assess the role of rotating savings as a means of funds mobilization and credit sourcing with a special focus on Otuasekan Rural Bank (ORB). The study used a sample of 365 respondents who were susu customers and credit officers of ORB. Simple random and purposive sampling techniques were employed in selecting the sample. The study employed survey methodology in which primary data was gathered with the use of structured questionnaire and unstructured interviews. The study employed both quantitative and qualitative methods of research analysis and mainly used primary data in addition to secondary data. Data was processed with Statistical Package for Social Sciences (SPSS) and presented in frequency tables and charts. The study reports that the operation of the rotating savings scheme has benefited the customers in terms of access to loans, education and seminars and safe keeping of savings while the bank gained from the scheme in areas of interest income from lending and investment activities, improvement in deposits and liquidity position as well as a source of low cost of funds. Further, it is reported that embezzlement of customers’ funds by bank officials, high labour turnover of personnel in-charge of rotating savings operations and inadequate personal data of customers are some challenges facing the bank in operating the scheme. The study recommends that a repackage of the scheme could be done so that clients who have been with the institution for long could be given a reduced interest rate which can go a long way to attract new contributors