July 23, 2024

Advancing Digital Growth

Pioneering Technological Innovation

Editorial: Financial technology’s ability to improve financial inclusion must be harnessed

2 min read

Ghana’s large informal sector, with its limited access to traditional banking services, can best be assisted through the power of financial technology (FinTech).

This has been amply demonstrated by Telecel Ghana’s Director of Mobile Financial Services and Digital Transformation, Philip Amoateng, who shared some insights at the University of Ghana Business School’s 44th Management Week celebration.

Fintech has laid the foundation for unbanked people to enter the formal financial services economy as mobile money services have improved access and convenience of making transactions. It has allowed customers to access savings and loan products to help achieve their financial goals and aspirations.

Between 2020 and 2021, Ghana recorded an impressive 58.5% growth in mobile money and digital financial services – a testament to the critical role FinTech plays in bridging the financial services gap.

This has largely been achieved because of BOG proactive policies to promote financial inclusion in country.

Mr. Amoateng observed that by integrating advanced technology with financial services, FinTech has democratised access to financial transactions, monetary advice and risk management strategies.

“It continues to help consumers navigate turbulent times with greater resilience – previously the purview of only the affluent and privileged few,” he added.

Also, digital banking platforms are broadening access to relevant products like savings accounts, financial literacy apps and loan guidance.

“FinTech is encouraging a culture of saving through automated savings apps and provides access to low-cost investment options like mutual funds and government bonds. Microloans offered via mobile platforms provide vital lifelines for emergencies and business needs, while peer-to-peer lending platforms give community-based support.”

Amoateng emphasised the need to expand rural access to FinTech services for equitable distribution, integrate the technology within sectors like agriculture and healthcare, and leverage these tools for personal/financial well-being.

Financial inclusion can increase access to financial services like payments, savings, credit, insurance and money transfers, etc.

In the past, banks have typically been less interested in serving lower-income segments of the population, seeing them as less profitable. However, with new technology which can scale more quickly and easily, many FinTechs are well-poised to address this typically under-served market at scale – bringing millions into the financially-included fold.

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