The ministry of finance affiliated company of Gargaara and KIB on Thursday 25 ,04 ,2024 concluded a 5-day training program for Bankers representing Somali financial institutions mainly Banks and MFIs.  The training which took place at Istanbul Hotel was held under the auspices of the World Bank.

The program has covered a range of topics pertinent to the Banking sector including Credit management processes which includes loan origination, credit processing and approvals considerations, risk management (as per PFI request from last year’s training and in line with IDP).

Training participants were drawn from various departments within the MFI’s and the Banking sector. Our Corporate Excellence and Business Development manager Faysal M.Hassan along with the Mogadishu Branch manager have participated in the training which has also focused on product development , Sharia compliance and women’s inclusion in accessing affordable and efficient credit services.

Kenya Institute of Bankers instructors unlocked a wide range of insights regarding stages in strategy formulation, market analysis, Business acumen and customer relationship management to address matters on the implications of the ever-changing market competition and credit allocation systems.

Here are key takeaways of the Training:

Credit Management

This refers to any company’s action plan to fend against late payments or defaults by its customers, which is necessary for the institution’s short term and long-term survival. Key areas the training touched was credit analysis, risk management, dynamics of risk and compliance and credit mentoring and recovery.

One of the main significances of credit management is that it increases the customer base and the purchasing activity of the clients which notably makes the institutions more profitable in the long run.

Product Development/strategic planning

This section of the training mainly focused on strategic planning and product development. The main goal of the strategic planning is to take a company from its current state to its desired state through a series of Business actions that align with the company’s mission.

It largely showcased components of a strategy, the strategy development processes, key challenges in strategy implementations and the best practices in strategy execution.  The product development section highlighted product development stages including conceptualization, idea screening, product testing, marketing strategy and finally commercialization of the product.

AML/CFT/KYC Compliance

Introduction to anti Money laundering (AML) and counter financing terrorism (CFT) was a major part in the training. In these modern technologies, there is no single anti money laundering strategy that will protect organizations from criminals, but it can be reduced to an extent that their penetration is difficult.

A robust and comprehensive approach is the only option institutions can erect to protect their organizations.  In the training, participating Institutions are advised to increase their bandwidth to identify and assess risks that associate with their operations.  Increased and tailored process controls combined with management oversight, risk assessment and fraud will help the organization to respond to the multiple AML CFT risks.

Furthermore, the training was concluded while the participants were able to implement strategies for SMEs to run successful institutions and also design and pilot products suitable for their clients, mainly women who are categorized as under -versed in accessing financial opportunities.