An Interview with Leticia’s On Her Remarkable Journey Through Leadership and Empowerment in the Financial Sector
Interviewer: Who is Madam Leticia?
Leticia: Leticia Afful, a professional lawyer, is the CEO of NDL Microcredit Limited, a financial institution that has been in business for the past 14 years. After completing her LLM in banking in the United Kingdom, she worked for five years as a legal officer at Société Générale Ghana. During this time, Leticia had the opportunity to train in credits and worked for some microfinance companies on legal issues. She became interested in finance and noticed that facilities took too long to be approved, frustrating customers. This led to her decision to set up a financial institution that could expedite the process and ensure loans were only disbursed after proper evaluation.
Career Journey, Leadership experiences and challenges
Interviewer: How would you describe your leadership style and approach?
Leticia describes her leadership style as collaborative and consultative, which means she encourages open communication and active participation from each team member. In her approach, everyone’s opinions and ideas are valued, and decision-making is not based on a single individual’s perspective. Instead, Leticia considers input from the staff and other team members before making final decisions. This ensures everyone’s concerns are heard and addressed, promoting a more inclusive and supportive work environment.
Interviewer: Can you share a specific leadership experience that has been particularly impactful to you?
In 2016, Leticia’s institution was audited by the Ghana Revenue Authority. They were given a tax liability significantly higher than expected during the audit. However, Leticia and her team did not take it lying down; they objected to the tax assessment and provided all the necessary documentation. After resolving the matter, they paid the correct amount of due tax. This experience had a profound impact on Leticia’s journey. She realized the importance of thoroughly understanding every process undertaken in the accounts department to avoid similar issues in the future. As a result, her institution’s record-keeping practices have significantly improved. Before the audit, they had faced challenges with record-keeping. However, they took a closer look at that area and made necessary changes, and the results have been quite successful. Leticia now ensures that her institution’s accounts department is meticulous in its operations and prioritizes keeping accurate records.
Interviewer: What are some of the challenges you have faced as a leader in the financial sector, and how have you overcome them?
Leticia: Access to capital is one of the primary challenges faced by microfinance institutions. As customer demand grows, the need for additional funding becomes increasingly pressing. However, obtaining loans from traditional banks is often difficult, and microfinance institutions are usually forced to rely on friends and family for financing at high-interest rates.
In addition, regulatory requirements can pose a significant challenge to microfinance institutions. For example, the Bank of Ghana has raised its capital requirements from an initial amount of GHS300,000.00.00 to GHS 2,000,000.00, significantly impacting many businesses in the sector.
Multiple customer borrowing is another issue that microfinance institutions face. Some customers borrow from multiple institutions without being registered with the credit bureau, making it difficult to identify high-risk customers and leading to loan defaults.
The slow pace of the court system is also a challenge for microfinance institutions, as it can take a considerable amount of time to obtain judgment. Sometimes, when a judgment is passed, the customer may have relocated or left the business, making it difficult to recover the funds owed.
Finally, staff turnover, theft and conflicts of interest can all pose significant challenges for microfinance institutions. High turnover can disrupt operations and lead to loss of institutional knowledge, while theft and conflicts of interest can undermine the institution’s integrity and damage its reputation.
Overall, microfinance institutions face various challenges that require ongoing attention and innovation. By carefully managing risk, staying abreast with regulatory requirements, and building solid relationships with customers and other stakeholders, these institutions can continue to play an essential role in promoting financial inclusion and economic development.
Strategies for Overcoming Barriers and Achieving Success
Interviewer: what strategies have you found effective for overcoming challenges and achieving success in the insurance industry?
Leticia: Capital was a significant challenge when I started my business. I needed the funds to meet the demands of our customers, and banks were unwilling to lend to microfinance institutions. I had to rely on support from friends and family to get started, but the high-interest rate was a burden. This experience taught me the importance of integrity, honesty, and hard work to succeed in this sector. To ensure that those who invested in my business receive their agreed-upon returns, I prioritize managing my funds prudently and living within my means. However, another challenge I faced was accessing professional help. Lawyers, accountants, auditors, and other professionals are vital, but their services can be expensive. To avoid going for cheaper options that may have long-term consequences, I now prioritize seeking professional help to ensure the success of my business. We are currently working with the association to get professionals who will work with us at a reduced fee.
Interviewer: Can you share any advice or tips for other women aspiring to advance in their careers?
Leticia: Firstly, learning and understanding the business or industry you plan to enter is essential. This requires a willingness to undergo training to equip yourself with the necessary knowledge before starting. It would be best to stay updated on the industry’s ever-changing regulatory regime. Investing in obtaining proper professional support and the right software for your business is crucial. In addition, women entrepreneurs must be willing to invest time and effort in managing their human capital. They must be actively involved in their business operations. It’s not enough to set up a business and be absent. They must know and run their business themselves. Understanding their products and their market focus is also crucial. Ultimately, integrity and hard work are critical to success in any industry.
Perspectives on Gender equality and empowerment in the workplace
Interviewer: How do you perceive the current state of gender equality and diversity in the finance industry?
Leticia: Compared to 10 years ago, women are doing well in the financial sector, with many now holding management positions.
Personal motivations and values
Interviewer: What motivates you to continue pursuing excellence in your career?
Leticia: “Regarding my motivations and values, financial reward and flexibility are the key drivers behind my desire to manage my business. Additionally, I am passionate about supporting traders and other women-owned businesses in their growth journeys and creating employment opportunities for others.”
Interviewer: How do your personal values and beliefs influence your approach to leadership and decision-making?
Leticia: “My values include honesty, integrity, trust, reliability, and teamwork. As a leader, I ensure that when my staff achieves their targets, management rewards them accordingly. I focus on being reliable and trustworthy because my employees can count on their salaries being paid promptly (my human capital). When we make a promise to our customers, we always deliver on that promise.”.
Future Aspirations and Goals
Interviewer: What are your aspirations and goals for the future?
Leticia: “My future aspirations and goals are to expand my business to other parts of the country with the approval of the Bank of Ghana. I also aim to ensure the longevity of my business beyond a single generation. Additionally, I hope to provide internship programs for young women and men who aspire to work in the financial sector. Furthermore, I plan to offer training programs for individuals who wish to pursue a career in the financial sector.”
This initiative is brought to you by GIZ’s Support to the Private and Financial Sector (PFS) programme. These interview series aims to empower young women in finance, promote gender equality and inclusivity, and encourage women to pursue leadership roles in their workplaces. The interviewer for this initiative is – Fatima Gberbie, Communications Specialist with PFS-GIZ Ghana.
