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The Bank of Ghana’s (BoG) 2023 FinTech Sector Report has highlighted remarkable progress in the country’s digital financial sector, revealing that mobile money accounts have now exceeded GH¢65 million, with transaction values surpassing GH¢1.9 trillion. This milestone represents a key development in Ghana’s drive toward becoming a more inclusive, cash-lite economy.
The significant growth is attributed to the widespread adoption of mobile financial services, providing millions of Ghanaians, particularly those in underserved and rural communities, with reliable access to essential financial services. Mobile money has emerged as a transformative force in Ghana’s financial ecosystem, with transaction volumes consistently experiencing exponential growth.
The Bank of Ghana also emphasized the critical role played by Rural and Community Banks (RCBs) in the national financial inclusion agenda. The central bank noted that RCBs, as key service providers in rural areas, have a unique opportunity to integrate digital technology into their operations to enhance financial access for rural populations.
Mrs. Elsie Addo Awadzi, the Second Deputy Governor of the BoG, delivered a message through Mr. Yaw Sapong, Director of the Other Financial Institutions Supervision Department, at the 23rd Annual Chief Executive Officers’ Conference in Ho. In her address, Mrs. Awadzi underscored the importance of digital transformation within the rural banking sector, urging RCBs to leverage technology to improve service quality and broaden their reach.
She highlighted the BoG’s commitment to advancing financial inclusion through digital initiatives such as the Ghanapay platform, a national digital payment system designed to improve financial service delivery, particularly in rural areas. Mrs. Awadzi encouraged RCBs to embrace Ghanapay and collaborate with FinTech companies through ARB Apex Bank to further innovate and develop tailored services that meet the unique needs of their customers.
Additionally, Mrs. Awadzi emphasized the need for RCBs to move beyond offering generic financial products. She noted that, to effectively serve rural communities, RCBs must create customized financial solutions that address the specific needs of local populations, such as the financial cycles of farmers, small-scale traders, women, and persons with disabilities.
By offering savings and loan products that align with agricultural and business cycles, RCBs can ensure that their services are relevant and accessible to their target clientele. Mrs. Awadzi pointed out that this approach would not only strengthen the financial well-being of rural populations but also position RCBs as the primary contact point for financial services in these areas.
To sustain this momentum, she urged RCBs to invest in capacity building and uphold good corporate governance practices. Enhancing staff skills and establishing sound governance structures would allow RCBs to adapt to the evolving financial landscape while ensuring long-term stability and accountability.
Mr. 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 played a crucial role in operationalizing digital banking platforms for RCBs, enabling them to deliver seamless and secure digital financial services.
Mr. Awuah noted that the digital transformation of RCBs has not only improved operational efficiency but has also expanded their customer base, integrating more Ghanaians into the formal financial system.
The 23rd Annual CEOs Conference, which brought together 147 leaders from RCBs across the country, provided a platform for discussions on the challenges, opportunities, and future direction of the sector. The event, themed “Positioning Rural Banking at the Centre of the National Financial Inclusion Agenda,” featured representatives from the Bank of Ghana, the Association of Rural Banks, and ARB Apex Bank’s Board Chairman, Dr. Toni Aubyn.
As technology and a customer-focused approach continue to reshape rural banking in Ghana, these advancements will be essential for promoting sustainable growth and ensuring broader financial inclusion across the nation.
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