More cooperatives and non-government organizations (NGOs) now operate in the countryside with relatively lower costs than most rural banks. As such, these entities may acquire portions of your market – not only from frontier areas but possibly even those you have nurtured through time. We also see the increasing presence of larger financial institutions in various municipalities.
While larger banks may have their own reasons for expanding their branching footprint, the net effect is that rural banks now face more competition. Furthermore, the passage of legislations allowing the infusion of foreign equity in rural banks is also bound to be a game changer. Ladies and gentlemen. All these call for decisions on the part of your rural banks.