The Bank of Ghana (BoG) is pushing for a major transformation in the country’s remittance market as it urges commercial banks to embrace digital solutions and develop innovative financial products tailored to Ghanaians living abroad.
The call comes as the central bank seeks to ensure that the billions of dollars flowing into Ghana through remittances do more than support household consumption. The BoG wants a greater portion of diaspora funds to enter the formal financial system and support savings, investment and broader economic development.
Governor of the Bank of Ghana, Dr. Johnson Asiama, made the call during an engagement with Chief Executive Officers and heads of banks as part of efforts to strengthen collaboration between the central bank and the banking industry.
BoG Identifies Major Gap in Diaspora Banking
According to Dr. Asiama, a recent survey conducted by the Bank of Ghana revealed a significant gap in the banking sector.
He disclosed that commercial banks currently do not have dedicated, off-the-shelf investment products specifically designed to meet the needs of Ghanaians living abroad.
The Governor said this gap is limiting the ability of Ghana’s financial system to capture the full investment potential of remittances.
“The findings broadly indicate that banks currently do not have dedicated off-the-shelf investment products, products specifically designed to meet the needs of the Ghanaian diaspora,” Dr. Asiama said.
The absence of such products means many diaspora Ghanaians continue to rely primarily on traditional remittance channels when sending money home.
While these channels remain important, the BoG believes they do not provide enough opportunities for recipients and senders to save, invest and build long-term financial assets.
Remittances Still Flow Through Basic Channels
Dr. Asiama explained that remittances are largely entering Ghana through basic money transfer services instead of being channelled into structured financial instruments.
“As a result, remittances continue to flow largely through basic transfer channels rather than being channelled into structured savings products, bonds or other investment vehicles.”
Dr. Johnson Asiama
The situation presents both a challenge and a major opportunity for the banking industry.
With more attractive and accessible products, banks could potentially encourage Ghanaians abroad to invest directly in financial instruments linked to Ghana.
Such products could include diaspora savings accounts, investment funds, bonds and other digital investment solutions designed around the unique financial circumstances of people living and working outside the country.
BoG Wants Banks to Go Beyond Money Transfers
The Governor stressed that banks must look beyond their traditional role of facilitating remittance transfers.
He urged financial institutions to broaden their offerings by combining banking services with technology-driven solutions capable of attracting more diaspora funds.
“I want to urge banks to take advantage of the significant potential within the remittance space by broadening their offerings beyond traditional transfer services to include bank-led investment products, mobile money solutions and digital remittance platforms.”
Dr. Johnson Asiama
The call places digital finance at the centre of Ghana’s strategy to deepen diaspora participation in the domestic economy.
Mobile money and digital banking platforms could make it easier for Ghanaians abroad to send money, monitor investments, save and participate in Ghana’s financial markets without relying heavily on physical banking processes.
Digital Platforms Could Transform Diaspora Finance
The growing use of digital financial services presents banks with an opportunity to redesign how diaspora customers interact with Ghana’s financial system.
A well-designed digital platform could allow a Ghanaian living abroad to send money home while simultaneously choosing whether a portion of those funds should go into savings, bonds or other investment products.
This could transform remittances from short-term financial support into a more structured source of capital for the economy.
The approach could also strengthen financial inclusion by giving diaspora customers greater control and visibility over their funds.
For banks, the development of such products could create new revenue opportunities while strengthening relationships with a potentially lucrative customer base.
BoG Targets Productive Use of Diaspora Funds
Dr. Asiama believes that a stronger focus on diaspora investment could deepen financial intermediation and mobilise additional capital for productive activities.
“This presents an opportunity to deepen financial intermediation and mobilise diaspora funds for productive investment in the Ghanaian economy,” he noted.
The potential impact could extend beyond the banking sector.
If more remittance inflows are directed toward productive investments, the funds could contribute to business expansion, infrastructure development, capital market growth and household wealth creation.
The strategy could therefore provide another avenue for mobilising domestic and international capital to support Ghana’s economic ambitions.
National Remittance Strategy in the Works
The BoG Governor also disclosed that the central bank remains committed to working with relevant stakeholders to develop a national remittance strategy.
The proposed strategy is expected to focus on enhancing remittance flows while ensuring that a greater proportion of inflows is directed towards savings, investments and broader economic development.
“The Bank of Ghana remains committed to working with relevant stakeholders to develop a national remittance strategy, a strategy that’s aimed at enhancing remittance flows into the economy and ensuring that a greater proportion of these inflows are channelled towards savings, investments and broader economic development.”
Dr. Johnson Asiama
The strategy could mark an important shift in how Ghana approaches diaspora finance.
Rather than viewing remittances primarily as money sent to families, policymakers and financial institutions are increasingly looking at them as a potential source of long-term capital.
Banks Face a New Opportunity
Ghana’s banking sector cannot afford to overlook the diaspora market.
Banks that successfully develop convenient, competitive and digitally accessible investment products could position themselves to capture a larger share of diaspora funds.
For millions of Ghanaians abroad, the opportunity could provide easier ways to save and invest in the country they continue to support financially.
The proposed digital transformation of the remittance market could therefore reshape the relationship between Ghana’s diaspora and the domestic financial system.
If successfully implemented, the initiative could turn remittances from simple money transfers into a powerful engine for savings, investment and economic development.
READ ALSO: Ghana’s Economic Engine Keeps Running Despite Slower Momentum
