Rebuilding GN Savings & Loans will be difficult due to trust and customer loss – Joe Jackson

The Chief Executive Officer of Dalex Finance, Joe Jackson, has said the process of reviving GN Savings and Loans following a Court of Appeal order for the restoration of its licence will be extremely challenging, given the length of time the institution has been inactive.

According to him, although the court ruling effectively restores the company’s licence, rebuilding a functioning financial institution goes far beyond legal authorisation.

Speaking on The Key Points on TV3 on Saturday, May 23, he explained that a licence alone does not automatically translate into a viable banking operation.

“It is important for us to differentiate between two things: a functioning bank is not a license, a functioning bank is credibility, trust, it is capital, liquidity, staff who work with them, the premises that are used,” he said.

He added that what has been restored is primarily legal status, not the operational capacity of the institution.

“So in truth, what has happened is that a license has been restored but the bank has not been resurrected,” he stated.

Joe Jackson further noted that rebuilding confidence and restoring operations would require significant effort, especially after seven years of inactivity.

“That license alone cannot create a financial institution… you still have to be in compliance, you still have to fulfil the BoG rules, you still have to get the public to trust you,” he said.

He stressed that many former customers have already moved on to other financial service providers, while staff have been out of employment for years, making recovery even more complex.

“One big issue we have is that it has been seven years since this institution was not functioning… so it is a tough one. Resurrecting this institution is a tough one,” he added.

His comments come after the Court of Appeal ruled that the revocation of the GN Savings and Loans licence was unfair and unreasonable, ordering that control of the institution be handed back to its shareholders.

Founder of Groupe Nduom, Dr Papa Kwasi Nduom, has welcomed the ruling, expressing optimism about the company’s future revival and commending staff who remained committed during the difficult period.

He said efforts would now focus on rebuilding the institution, despite acknowledging that some losses, including jobs and assets, may not be recoverable.