Selling is pivotal in banking to drive revenue, build relationships, and maintain competitiveness, especially in Ghana’s post-cleanup landscape where banks must comply with BoG recapitalization guidelines like Notice No. BG/GOV/SEC/2023/05.

Four reasons why selling is important in banking:

1. Generates Revenue and Profitability: Selling financial products like loans and investments directly contributes to fee income and interest margins. For instance, at Access Bank Ghana, proactive selling post-2019 cleanup increased non-interest revenue through credit cards, aligning with Basel III adaptations for capital adequacy.
2. Builds and Strengthens Customer Relationships: Effective selling fosters trust and loyalty, turning one-time clients into long-term partners. In GCB Bank, relationship managers sell tailored corporate services, enhancing retention under the transactional vs. relational approach in marketing plans.
3. Enhances Competitive Advantage: Selling differentiates banks in a crowded market. Stanbic Bank Ghana’s sales of digital solutions competes with fintechs, complying with Act 987, and leverages market research to target segments effectively.
4. Supports Risk Diversification and Compliance: Selling diverse products spreads risk, as per BoG’s CRD. Ecobank Ghana sells insurance alongside loans to mitigate defaults, ensuring ethical practices under Act 930 and improving overall resilience.

Discussing these:

• Generates Revenue and Profitability: In practice, selling boosts bottom lines; e.g., during DDEP recovery, banks sold treasury bills to corporates, offsetting losses. It maximizes scarce resources, but requires training to avoid mis-selling fines from BoG.
• Builds and Strengthens Customer Relationships: This leads to cross-selling opportunities, as in Ecobank’s home banking packages, promoting satisfaction and referrals, integral to BoG’s customer protection focus.
• Enhances Competitive Advantage: By understanding competitors via sales planning, banks like GCB gain market share; e.g., campaign selling during economic upturns post-2024.
• Supports Risk Diversification and Compliance: Selling varied services reduces concentration risk, as seen in UT Bank’s collapse due to poor diversification; it ensures BoG approval through governance-aligned sales.