5G rollout demands tighter FinTech regulations — Expert

A FinTech expert has said the introduction of 5G internet in Ghana will require substantial regulatory adjustments within the FinTech space to ensure consumer protection and data security.

The President of Ghana FinTech and Payment Association (GFPA), Martin Awagah, who said the above, however, admitted that 5G would revolutionise Ghana's FinTech sector, stressing again that there was a need for comprehensive regulations to govern the FinTech industry in an increasingly connected world.

He was speaking in an exclusive interview with Graphic Business, following the formal launch of the new technology in the country and how that could bring more flexibility, efficiency and speed to transform the FinTech space in the country.

"Existing regulations like the Data Protection Act provide a foundation, but the FinTech industry requires updated, stricter guidelines on data encryption, storage and transfer to protect sensitive financial information in this high-speed, connected environment," he said.

Monitoring

Giving further details to buttress his call, he drew the attention of policymakers to the nature of the new technology, saying that 5G would enable instantaneous transactions and faster service delivery; hence, it would require regulators to monitor activities and compliance in real time.

"Regulatory bodies may need to invest in more advanced monitoring systems and technologies that can match the speed of 5G-enabled FinTech services, ensuring swift detection and response to fraud or regulatory breaches," he said.

Consumer protection focus

On consumer protection, Mr Awagah highlighted the importance of reviewing consumer protection regulations, explaining that faster and more accessible financial products powered by 5G innovations could expose consumers to new risks.

To mitigate these risks, he advocated clearer and more transparent disclosure of fees, terms and conditions on FinTech platforms. 

He also proposed setting caps on fees and interest rates to protect consumers from potential exploitation such as predatory lending or hidden charges that could harm financial stability.

 
5G Launch

Ghana launched its high-speed 5G internet service last Friday, initially covering Accra, Kumasi and Takoradi. 

The technology, described as "more than just faster internet" but rather "a leap forward in connectivity", aligns with Ghana's vision to become a digital economy hub.

The government plans to extend coverage to underserved areas by 2026 and has committed to working with service providers to develop affordable data plans. 

The initiative aims to integrate the Internet of Things, artificial intelligence, and data analytics across all sectors of Ghana's economy.

While the new technology has been acknowledged worldwide as the way to go, some have cautioned against cost.

They argued that unless the poor and marginalised can also afford it, it will rather widen the gap, either financially or knowledge, between the haves and the haves not.

They also called for accelerated efforts to roll 5G nationwide, learning from the experiences of the 4G, which is still limited to a few areas in the country.