FinTechs partner banks — BOG director
THE Director of FinTech and Innovations at the Bank of Ghana (BOG), Kwame Agyapong Oppong, has emphasized that Financial Technology (FinTech) payment platforms and systems can only operate in partnership with local banks in the country.
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This is according to the BOG's Inward Remittances Guideline of 2021.
As a result, the BOG only licenses payment service providers with a banking partner in Ghana, allowing for tracking by the central bank.
Mr Oppong noted that Ghana does not operate a remittances regime, and, therefore, remittance companies are not licensed in the country.
He stressed the need for a policy change to ensure sector stability and resilience in the financial ecosystem, given the impact of remittances on economic growth.
FinTechs and payment service providers require only one license to serve consumers in Ghana, Mr Oppong explained.
He highlighted the significant growth of the remittance space and the vital role FinTechs play in the financial sector, citing the example of mobile money and enhanced payment service providers.
Mr Oppong debunked the notion that FinTechs needed multiple licenses to operate legally, emphasizing that his outfit has put in place policies to nurture the sector's growth.
He also discussed the importance of tracking and capturing remittances, noting that Ghana only operates an inward remittance regime, with the BOG as the sole authority supervising and authorising the sector.
Dr Richmond Atuahene, a banking expert, called for the government to train and empower technical persons to track and monitor remittance inflows, ensuring the central bank receives its due.
He emphasized the need for a strategic agenda to regulate FinTechs and maximise foreign exchange earnings.
Mr Yaw Appiah Lartey, a financial advisor at Deloitte Ghana, noted that remittances contribute 6.4% to Ghana's GDP, highlighting their significance in Africa.
He called for stakeholders to bring more Ghanaians into the banking system and reduce the cost of regulating FinTechs.
The Managing Director of the Graphic Communications Group Limited, Ato Afful,underscored the importance of remittances in Ghana's balance of payments, citing their substantial rise and direct impact on poverty reduction.