Ghana’s economy faces challenges – a volatile currency, rising inflation, and limited access to traditional banking, especially in the vast informal sector.
These factors make it difficult for individuals and businesses to build financial resilience, the ability to weather unexpected financial shocks.
At the University of Ghana Business School’s Management Week celebration, Philip Amoateng, Director of Mobile Financial Services and Digital Transformation at Telecel Ghana, discussed how FinTech (financial technology) empowers Ghanaians to achieve financial stability.
Financial resilience allows people to handle emergencies while maintaining financial health. Mr. Amoateng highlighted the challenges hindering this:
- Large informal sector with limited access to traditional banking
- Banking sector issues
- Domestic debt exchange program’s impact
- Economic volatility
FinTech offers solutions:
- Mobile Money: Services like Telecel Cash allow saving, payments, and reduced reliance on cash, lowering transaction costs.
- Digital Banking Platforms: These broaden access to savings accounts, financial literacy tools, and loan guidance.
- Automated Savings Apps: They encourage saving and provide access to low-cost investments like mutual funds and government bonds.
- Microloans: Offered via mobile platforms, they provide emergency and business support.
- Peer-to-Peer Lending: These platforms offer community-based financial help.
- Microinsurance: Affordable health, life, and property coverage protects users.
Telecel Cash is a successful example. It processes over GH¢3 billion monthly in transactions, from bill payments to remittances. In 2023 alone, they paid GH¢30 million in interest to 2.6 million customers and facilitated over GH¢500 million in international money transfers.
“These benefits significantly improve financial resilience,” Amoateng stressed.
Looking forward, expanding rural FinTech access, integrating it with agriculture and healthcare, and leveraging it for personal financial well-being are crucial.
However, challenges like cybersecurity threats, social engineering scams, high taxes, and infrastructure vandalism need solutions to ensure FinTech’s continued growth.
By harnessing FinTech’s potential, Ghanaians can build a more financially secure future.
