Bank of Ghana’s Plans to Expand Financial Access
The Bank of Ghana (BoG) is taking steps to introduce new regulatory frameworks for open banking, digital banking, and digital credit by the end of the year. This move is part of efforts to expand financial access and support small- and medium-sized enterprises (SMEs). According to First Deputy Governor Dr. Zakari Mumuni, the central bank aims to leverage the growing mobile money ecosystem and e-commerce sector to enhance financial inclusion.
Growth of Digital Financial Services in Ghana
Ghana has seen significant growth in digital financial services, driven by advances in technologies such as blockchain, decentralized finance, artificial intelligence, and digital wallets. The central bank has adjusted its policy approach to accommodate this growth and provide a stronger legal foundation for digital financial services. In 2017, the BoG initiated regulatory reforms, which led to the passage of the Payment Systems and Services Act, 2019 (Act 987).
Regulatory Reforms and Innovations
The Payment Systems and Services Act, 2019, has helped streamline operations for the fintech space, promoting innovation and competition in digital finance. The central bank has also introduced an exposure draft on digital assets, aimed at supporting innovation while addressing risks such as money laundering, cybersecurity, and consumer protection. Additionally, the BoG is piloting several innovations, including a Central Bank Digital Currency (e-Cedi) and tokenization projects such as Universal Trusted Credentials (UTCs) and Digital Economy Semi-Fungible Tokens (DESFTs).
Oversight and Supervision
In terms of oversight, the central bank has developed digital supervisory tools, including the Supervisory Intelligence (S.I.) platform and Online Regulatory, Analytics, and Surveillance System (ORASS). These systems collect granular data from financial institutions, conduct pattern analysis, and support real-time, evidence-based policy decisions.
Closing Financial Access Gaps
The initiatives come as Ghana continues efforts to close financial access gaps, particularly for SMEs that often struggle to secure affordable credit or fully participate in the digital economy. The BoG’s plans to introduce new regulatory frameworks and innovations are expected to enhance financial inclusion and support the growth of SMEs.
Conclusion
In conclusion, the Bank of Ghana’s plans to introduce new regulatory frameworks for open banking, digital banking, and digital credit are a step in the right direction. The central bank’s efforts to leverage technology and innovation to enhance financial inclusion and support SMEs are commendable. With the growth of digital financial services in Ghana, it is essential to have a robust regulatory framework that promotes innovation and competition while addressing risks. The BoG’s initiatives are expected to have a positive impact on the economy and improve financial access for all.
