[ 2016-10-26 ]

Mobile Money sees 118% growth
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
percent growth in value since July 2015.

The growth in the value of transactions is also
matched by a similar rise in the number of mobile
transactions over the given period – rising from
132.5 million to about 265.2 million transactions,
a 100 percent jump.

According to the Second Deputy Governor of the
central bank, Dr. Johnson Asiama, “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.”

Mobile money has over the years seen great
patronage since its inception in 2009. Rising in
value, volume and registered customers, the
service is now recorded to have a quantum
increment in registered users.

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 93percent
increase – from GH¢363.7 million in July last
year to about GH¢703.6 million in July this
year.

With the presence of more than 20 savings and
loans companies, more than 30 banks and over 500
microfinance companies in the country, the
percentage of Ghanaian population with formal
banking access now stands more than 50percent with
about 952 bank branches.

But Dr. Asiama said, “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 also added 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 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.

The Deputy Governor emphasized that the future of
financial service delivery is going to be driven
by technology. “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.

Source - Joyfm

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