Ghana: Reform yields 118% Growth for Mobile Money

The total value of all transactions made on the mobile money networks has topped GH¢37.07 billion as at July this year, representing more than 118 per cent growth in value since July 2015.

Dr. Johnson Asiama, the Second Deputy Governor of the central bank, said: “these impressive results are attributed to the passage of the Electronic Money Issuers Guidelines by the Bank of Ghana, which has created an enabling regulatory environment for digital financial services.”

According to the Bank of Ghana’s latest report on the mobile money sector, between last year July  and July, 2016, registered mobile money subscribers increased from 10.4 million to 17.2 million, while active subscribers shot up to more than 5.3 million.

Dr. Asiama, speaking at the 6th Annual General Meeting of the Ghana Association of Savings and Loans Companies, said the mobile finance industry has led to a leap of financial inclusion in many economies globally adding that, “mobile money services are experiencing extraordinary growth, with Africa reported to be leading the world in using mobile platforms for financial service transactions.”

The patronage of mobile money continues to gain high patronage as the various mobile networks compete with each other to make their customers satisfied. This has also reflected in the total value of float this year, with a 93 per cent increase – from GH¢363.7 million in July last year to about GH¢703.6 million in July this year.

Ghana now has 20 savings and loans companies, more than 30 banks and over 500 microfinance companies and the percentage of Ghanaian population with formal banking access now stands more than 50 per cent with about 952 bank branches.

Dr. Asiama added, “We are seeing an increasing collaboration between banks and non-bank institutions such as telcos and financial technology firms for financial service delivery. Products arising from these collaborations include savings, insurance, remittance and investment products. Hence there is no doubt that technology is promoting innovative financial products and a more inclusive financial system.”

“He explained that the central bank has initiated the process to review the e-money issues and agents’ guidelines to ensure that the benefits of digital finance are fully realized. “The draft regulation has been sent to all banks for comments and copies can also be accessed on the bank’s website.”

Dr. Asiama urged Ghana Association of Savings and Loans Companies (GHASALC) to submit comments on the regulation to enable the regulator evolve an enabling legal framework.

“Digital finance is a revolution; not an option, especially to a financial institution. Let us therefore embrace it to promote financial inclusion, save cost and remain in business,” he said.

“In recognition of the enormous benefits of this emerging trend, we as regulators are working to position the country to harness technology for a safe, sound and efficient financial sector through the promotion of innovative financial products without risking the stability of the financial system,” he added.

This post first appeared HERE

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