Ghana’s banking sector may soon witness significant transformations, with the potential return of UT Bank or GN Bank and the anticipated full-fledged entry of MTN into the banking space.

These developments, predicted by David Ofosu-Dorte, Senior Partner at AB & David Africa, could lead to heightened competition and a reshaped financial landscape.

Speaking at the 2025 Crystal Ball Event, Ofosu-Dorte indicated that at least one of the two defunct banks—UT Bank or GN Bank—might regain its operating license. “UT Bank and GN Bank—one of them will get their license back,” he stated, suggesting a broader shift in Ghana’s banking ecosystem.

This prediction signals a potential reversal of the financial sector cleanup initiated in 2017, which led to the collapse of several banks and financial institutions due to insolvency and regulatory non-compliance. If realized, the return of either UT Bank or GN Bank would mark a significant policy shift, raising questions about the government’s stance on financial sector reforms and the criteria for restoring banking licenses.

MTN’s Planned Entry Into the Banking Sector

Alongside the possible return of UT Bank or GN Bank, Ofosu-Dorte also highlighted the imminent transformation of MTN Ghana into a full-fledged bank. “MTN has already announced becoming a bank. It will look more real soon, and a lot of banks will be scared,” he remarked.

MTN Ghana, already a dominant player in the country’s mobile money sector, has the potential to disrupt the banking industry with its extensive customer base, digital expertise, and innovative financial products. The company’s transition from a telecommunications giant to a full banking entity could present serious competition for traditional banks, especially in retail banking, digital transactions, and financial inclusion.

The potential return of UT Bank or GN Bank, coupled with MTN’s entry into the banking sector, is poised to intensify competition within Ghana’s financial industry. Traditional banks may face increased pressure as MTN leverages its advanced fintech solutions and extensive customer base to offer seamless financial services. Additionally, the re-establishment of a previously recognized banking brand could reshape market dynamics, forcing existing banks to innovate and refine their strategies to retain customers and market share.

Beyond competition, these developments could significantly enhance financial inclusion, particularly for Ghana’s unbanked and underbanked populations. MTN’s mobile technology infrastructure provides a unique opportunity to bridge the financial gap by making banking services more accessible to rural and underserved communities. This shift aligns with broader efforts to expand financial accessibility, fostering economic participation across various demographics while enabling businesses and individuals to engage more effectively with the formal banking sector.

To accommodate these changes, regulatory adjustments may be necessary to maintain financial stability. The Bank of Ghana may need to refine its oversight mechanisms to integrate MTN’s banking operations while ensuring compliance with industry standards. Furthermore, the resurgence of a defunct bank could prompt revisions in banking regulations to prevent past financial mismanagement.

Development Bank Ghana (DBG) and Capital Market Growth

Beyond banking, Ofosu-Dorte also hinted at possible changes within Development Bank Ghana (DBG), a state-owned financial institution. While he did not provide details, any shake-up at DBG could have implications for long-term credit availability for businesses and infrastructure development.

Additionally, he forecasted robust growth in Ghana’s capital market, attributing this to ongoing reforms and innovations that continue to bolster investor confidence. A well-developed capital market is crucial for economic expansion, providing businesses with alternative funding sources outside traditional banking.

The possible return of UT Bank or GN Bank, coupled with MTN’s full-scale entry into banking, could redefine the competitive landscape of Ghana’s financial sector. While these developments promise increased financial inclusion and innovation, they also present regulatory and market stability challenges that must be carefully managed.

As Ghana’s financial sector continues to recover from the regulatory interventions of 2017, the coming years could usher in a new era of competition, technological advancements, and policy shifts.