Ghana has made remarkable progress in expanding access to financial services, but the Bank of Ghana says the country now faces a tougher challenge: turning access into meaningful usage.
With financial inclusion estimated at about 96 percent under Ghana’s National Financial Inclusion Development Strategy, the country appears close to universal access. However, the central bank says account ownership and mobile money access do not necessarily translate into deeper participation in the formal financial system.
The next phase of Ghana’s financial inclusion drive will therefore focus on encouraging people to use digital financial services for savings, insurance, pensions, credit and investment.
BoG Shifts Focus From Access to Usage
Hayford Kumah, Head of the DEMI and PSP Office at the Bank of Ghana’s FinTech and Innovation Department, said the country had performed strongly in expanding financial access.
“By and large, in terms of access, we have done well. The challenge now is usage,” he said.
His comments highlight a major shift in the country’s digital finance strategy.
For years, mobile money and digital payment platforms have been celebrated for bringing millions of Ghanaians into the formal financial system. People who previously had limited access to bank branches can now send and receive money, pay bills and conduct transactions using mobile devices.
However, the Bank of Ghana believes the benefits of digital finance will remain limited if customers use these platforms primarily as channels for receiving and withdrawing money.
The central bank now wants digital finance to become a tool for building financial security and wealth.
Ghana’s 96% Financial Inclusion Figure Under Spotlight
According to Mr Kumah, Ghana’s National Financial Inclusion Development Strategy puts the country’s financial inclusion rate at approximately 96 percent.
He also cited a World Bank estimate of 81.4 percent, explaining that the difference is largely due to the methodologies used by the two institutions.
Despite the variation, both figures point to significant progress in expanding access.
The bigger question is what people actually do with the financial services available to them.
A person may own a mobile money wallet or bank account without regularly saving through it. Another customer may use a digital platform for transfers but never access insurance, pensions, investment products or responsible credit.
This gap between access and effective usage could become one of Ghana’s biggest financial inclusion challenges.
BoG Backs Innovation-Led Regulation
To encourage greater usage, the Bank of Ghana is adopting what it describes as a balanced and proportionate risk framework.
Mr Kumah said the objective is to create room for innovation while protecting consumers and maintaining the stability of the financial system.
“We are trying to bring on board as much innovation as possible while also ensuring that this is safe and sound,” he said.
The approach represents an important change in how regulators view technological innovation.
Rather than treating fintech innovation primarily as a threat, the central bank wants regulation to create an environment where new products and business models can develop safely.
Mr Kumah stressed that innovation and regulation should not be viewed as opposing forces.
“Rather, regulation should help safeguard innovation,” he said, particularly for informal sector workers, less educated customers and other users of digital financial services.
Informal Workers Could Become Major Beneficiaries
The informal economy is likely to be at the centre of Ghana’s next financial inclusion push.
Millions of traders, artisans, transport operators and other informal workers earn irregular incomes and often operate outside conventional payroll banking and employer-based pension arrangements.
Digital platforms could provide these workers with more flexible financial products.
Instead of requiring a fixed monthly contribution, for example, digital savings and pension products could allow workers to make smaller and more frequent payments according to their income patterns.
The same approach could potentially expand access to micro-insurance, investment products and carefully designed credit facilities.
If successful, such products could help households withstand unexpected financial shocks while building assets over time.
Fraud Threatens Ghana’s Digital Finance Growth
However, the expansion of digital finance comes with significant risks.
Mr Kumah identified fraud and cybersecurity as major barriers to wider adoption.
As digital transactions increase, consumers face growing threats from identity theft, social engineering, unauthorised transfers and other forms of electronic fraud.
A single major incident can damage confidence in digital financial services far beyond the customers directly affected.
For this reason, cybersecurity, data protection, transaction monitoring and rapid incident response will become increasingly important.
Consumer protection will also have to remain at the heart of the regulatory framework.
Customers need clear information about fees, interest charges, penalties and their responsibilities when using digital products. Complaint-resolution systems must also be accessible, particularly for customers with limited financial literacy.
The Next Battle Is Trust
The success of Ghana’s next financial inclusion phase could ultimately depend on trust.
Customers are unlikely to maintain larger balances, purchase insurance or make long-term investments through platforms they consider unsafe, expensive or difficult to understand.
Financial institutions and fintech companies therefore face pressure to develop products that are simple, affordable and relevant to ordinary customers.
The Bank of Ghana’s proportional approach could also help smaller fintech companies avoid unnecessary regulatory burdens while ensuring that larger and riskier institutions face stronger oversight.
Yet proportional regulation cannot mean weak regulation.
As banks, mobile money operators, payment service providers, telecommunications companies and technology firms become increasingly interconnected, problems at one institution could potentially affect the wider financial ecosystem.
Ghana Must Turn Access Into Real Financial Participation
Ghana has already achieved significant progress in bringing people closer to formal financial services.
The next challenge is much harder.
The country must transform mobile wallets and bank accounts from simple transaction tools into gateways for savings, insurance, pensions, credit and investment.
The Bank of Ghana’s innovation-led regulatory approach could play a crucial role in making that transition possible.
But regulation alone will not be enough.
Financial institutions must create products people actually need. Consumers must receive practical financial education. Digital platforms must become safer and easier to use. And the fight against fraud must intensify.
With financial access already reaching impressive levels, Ghana’s next financial inclusion battle will not be about getting people through the door.
It will be about making sure they actually use the financial system to improve their economic security.
READ ALSO: Ghana Faces Staggering $37bn Annual Urban Infrastructure Investment Gap- World Bank
