Dr. Maxwell Opoku-Afari, First Deputy Governor of the Bank of Ghana, has underscored the critical role of mobile money services in driving financial inclusion as he addressed the launch of the Electronic Money Issuers (EMI) Chamber of Ghana.
In his keynote remarks, he emphasized that the establishment of the EMI Chamber marks a significant step in the evolution of the nation’s financial landscape, fostering innovation and collaboration in a fast-growing sector.
The formation of the Chamber, which is set to represent the interests of mobile money operators and other electronic money issuers, comes at a crucial juncture as digital financial services have become an indispensable part of daily life in Ghana.
“This launch signals the beginning of a new chapter in our digital financial landscape,” Dr. Opoku-Afari stated, stressing the importance of the mobile money industry in creating accessible and affordable financial services for millions of Ghanaians.
The mobile money sector has seen tremendous growth over the past decade, with nearly 23 million active wallets currently in use. Dr. Opoku-Afari noted that this explosion of digital financial services has played a pivotal role in transforming how Ghanaians transact, moving away from the traditional reliance on cash.
Mobile money has also facilitated access to other financial products, including insurance, pensions, and investment services, which have helped deepen engagement with the broader financial sector.
Dr. Opoku-Afari praised the role of financial technology in reshaping the sector, pointing out how it has revolutionized access to financial services, especially in remote areas.
“In Ghana, the phenomenon of physical cash transactions and long queues at the bank has now been replaced by efficient, safe, and convenient mobile money services,” he said. Mobile money services have, in particular, boosted financial inclusion, driving the country’s overall financial inclusion rate above 90%, according to the 2021 FinScope Report.
At the core of Ghana’s mobile money success is the seamless integration of the service with the broader banking sector. The Ghana Interbank Payment and Settlement Systems (GhIPSS) has facilitated this integration, notably through the introduction of Mobile Money Interoperability. This innovation has allowed users to transfer money between different mobile wallets and even to and from traditional bank accounts, making financial transactions more accessible and efficient.
The creation of the EMI Chamber highlights the need for specialized advocacy in a rapidly evolving sector. As Dr. Opoku-Afari explained, while the Ghana Telecommunications Chamber has played an essential role in advancing the interests of telecom operators in the digital finance space, the complexity and specific challenges facing mobile money operators warrant a dedicated body.
The EMI Chamber will focus on addressing issues related to the regulatory environment, consumer protection, and the unique risks and opportunities posed by the digital finance sector.
Looking forward, Dr. Opoku-Afari acknowledged the potential for future growth in mobile money and other digital financial services, as well as the challenges posed by regulatory frameworks. He highlighted the longstanding collaborative relationship between the Bank of Ghana and the mobile money sector, noting that this partnership has been essential in developing key regulatory guidelines, including the Electronic Money Issuer Guidelines of 2015 and the Payment Systems and Services Act of 2019.
Dr. Opoku-Afari concluded his remarks by reiterating the Bank of Ghana’s commitment to working closely with the EMI Chamber and other stakeholders to ensure that Ghana’s digital finance ecosystem continues to expand. “We look forward to a future where every Ghanaian, regardless of their location or socioeconomic status, has access to affordable and convenient mobile money financial services,” he said.
The launch of the EMI Chamber comes at a pivotal time for Ghana’s digital payments sector, as mobile money services become ever more integrated into the fabric of the country’s economy, offering both opportunities and challenges for the regulatory authorities and industry players alike.
Source:norvanreports.com