Kojo Addae-Mensah, Group CEO, Databank
Databank says it’s not a universal bank and therefore cannot be part of the ongoing consolidation exercise of commercial banks in the country.
“It has come to our notice that sections of the general public are misinterpreting Databank’s relationships with its partner banks as part of the ongoing consolidation exercise of commercial banks, otherwise known as universal banks.
“We wish to inform the general public and our esteemed customers that Databank is not a commercial bank, and is therefore not part of the ongoing sanitization exercise taking place within the banking industry.”
Kojo Addae-Mensah, Group Chief Executive Officer (CEO), who disclosed this in a press statement, said Databank, founded in 1990, is Ghana’s premier and largest independent investment firm.
“We are regulated by the Securities and Exchange Commission (SEC) and governed by the Securities Industry Act, 2016 (Act 929) and its regulations thereof. Commercial banks are regulated by the Bank of Ghana and governed by the Banks and Specialized Deposit Taking Institutions Act 2016, Act 930.”
Custody bank
Identifying itself as a custody bank, it said by law (Section 72, Act 929 and Regulations 69, LI 1695), the investments are held with commercial banks, which act in the capacity of a custodian and independent of the investment firm.
“This is to ensure that client funds are not comingled with operational funds of the fund manager. When the investment firm (Databank) needs to make an investment on behalf of its clients, instructions are sent to the Custodian for the transfer of funds for the said investment. In this regard, Databank began its custody relationship with Barclays Bank in 1996, and currently has custody relationships with Standard Chartered Bank, Guaranty Trust Bank (GTBank) and Stanbic Bank.”
Collection bank
Describing itself as a collection bank, it said it has collection relationship with a number of commercial banks to enable clients to walk into any of such partner bank branches and deposit into Databank Mutual Fund accounts.
“We have such partnerships with Access Bank, Barclays Bank, GCB Bank, GTBank, Fidelity Bank, Standard Chartered Bank, UBA and Zenith Bank. Through these partnerships, Databank’s clients have access to over 470 bank branches across the 10 regions of Ghana through which they can top up their investments.”
Partner-location bank
“This form of partnership is a strategic partnership that Databank embarked on with GTBank in 2015 where licensed Databank staff are located in a number of GTBank branches across Ghana to allow clients to open investment accounts onsite. Through this partnership, clients can find Databank staff in 10 GTBank branches in cities like Accra, Ashaiman, Cape Coast, Tamale and Tarkwa, as well as the UBA branch on the KNUST campus.”
“We wish to therefore allay any concerns that the investing public, general public and our esteemed customers may have about the implications of our partnerships with the various commercial banks. It’s in no way a consolidation nor a signal that Databank is merging with any commercial bank. That is not a part of our strategic vision currently. Our goal is to focus on our core mandate of providing investment solutions to Ghanaians.
“We encourage you to top up your investments at any branch of our partner banks. There are over 470 branches to choose from.”