The 2023 FinTech Sector Report by the Bank of Ghana (BoG) has revealed remarkable growth in the country’s digital financial ecosystem, with mobile money accounts surpassing 65 million and transaction values exceeding GH¢1.9 trillion. This milestone reflects Ghana’s progress towards becoming a more inclusive and cash-lite economy.
The report attributes this growth to the widespread adoption of mobile financial services, which have proven to be a reliable and efficient means of providing millions of Ghanaians, particularly those in underserved and rural areas, with access to financial services. Mobile money has now emerged as a dominant force in Ghana’s financial sector, with transaction volumes experiencing exponential year-on-year growth.
The Bank of Ghana also highlighted the crucial role of Rural and Community Banks (RCBs) in driving the country’s financial inclusion agenda. As key providers of financial services in rural areas, RCBs are uniquely positioned to harness the power of digital technology in their operations, bridging the financial access gap in remote communities.
Speaking at the 23rd Annual Chief Executive Officers’ Conference in Ho, Mrs. Elsie Addo Awadzi, the Second Deputy Governor of the BoG, in a speech delivered on her behalf by Mr. Yaw Sapong, Director of the Other Financial Institutions Supervision Department, emphasized the importance of digital transformation within the rural banking sector. She urged RCBs to leverage technology to expand their reach and enhance service quality.
Mrs. Awadzi reiterated BoG’s commitment to advancing financial inclusion through digital initiatives like the Ghanapay platform, a national digital payments system aimed at improving financial service delivery, especially in rural areas. She encouraged RCBs to embrace the platform and collaborate with FinTech companies, through partnerships facilitated by ARB Apex Bank, to innovate and customize their services for local communities.
She further emphasized the need for RCBs to go beyond generic financial products by developing tailored solutions that address the unique needs of rural populations. This includes understanding the financial cycles of farmers, small-scale traders (especially women and persons with disabilities), and local businesses. By offering services aligned with agricultural and business cycles, such as savings and loan products, RCBs can ensure their offerings are relevant and accessible to their clientele.
Mrs. Awadzi noted that adopting this approach would not only improve the financial well-being of rural populations but also position RCBs as the primary point of contact for financial services in these regions. She encouraged RCBs to invest in capacity building and good corporate governance, as developing staff skills and maintaining sound governance structures are key to adapting to evolving financial needs and ensuring long-term financial stability.
Alex Kwesi Awuah, Managing Director of ARB Apex Bank, also praised the successful implementation of the Financial Sector Development Project (FSDP). Supported by the Government of Ghana and the World Bank, the FSDP has helped operationalize digital banking platforms for RCBs, enabling them to provide seamless and secure digital financial services to customers.
Mr. Awuah highlighted that the digital transformation of RCBs had not only enhanced their operational efficiency but also expanded their customer base, bringing more Ghanaians into the formal financial sector.
The 23rd Annual CEOs Conference, which brought together 147 CEOs from RCBs across Ghana, provided a platform for rural banking leaders to discuss sector challenges, opportunities, and future strategies. Held under the theme “Positioning Rural Banking at the Centre of the National Financial Inclusion Agenda,” the event featured representatives from the Bank of Ghana, the Association of Rural Banks, and ARB Apex Bank’s Board Chairman, Dr. Toni Aubyn.
As rural banking continues to play a vital role in Ghana’s financial landscape, the adoption of technology and a customer-centric approach will be key to sustaining growth and expanding financial inclusion across the country.
SOURCE: https://dew360.net
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