Leverage FinTech to create more inclusive stock market — Expert to GSE
FINTECH solutions could transform Ghana's capital market by making stock market participation more attractive, accessible and inclusive through innovative tools such as mobile applications and digital wallets, the President of the Ghana FinTech and Payments Association, Martin Kwame Awagah, has said.
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He said while Ghana's FinTech ecosystem had evolved to include many players enhancing financial inclusion and integrating with capital market operations, the country's capital market itself remained in a developmental phase.
"The GSE, while pivotal, has seen an appreciable growth, with market capitalisation increasing by 14.54% from GH¢64.51 billion in 2022 to GH¢73.89 billion in 2023.
However, market penetration, particularly among retail investors, remains low, with a global average exceeding 45%," he said.
Mr Awagah made these revelations while delivering the keynote address at the launch of this year's 'Ring the Bell for Financial Literacy', on the theme: "Technology and Digital Finance: A Catalyst for Capital Market Growth", in Accra.
Citing the World Bank's 2023 Report on Financial Sector Development in Sub-Saharan Africa, he said Ghana's capital market contributed less than 5% to the country's Gross Domestic Product (GDP), a figure significantly below the global average.
Additionally, he said retail investor participation remained below 20%, as many Ghanaians still perceived the stock market as a domain for the wealthy.
This limited participation, he said, signalled a massive gap in untapped potential, particularly among the youth and the unbanked.
Solution
Proposing a solution, he emphasised the role of technology in bridging this gap, adding that "to curb this problem and make the GSE very attractive to all age groups, businesses, and individuals, we strongly believe that technology and fintech deployment hold the key to unlocking the full potential of Ghana's capital markets.
This is possible by reducing barriers to entry, providing innovative financial products, and enhancing market accessibility for all demographics."
Financial literacy
The Chief Executive Officer (CEO) of the Central Securities Depository (GH) LTD, Joseph Oko Abumah Lartey, said technology was not just a luxury but a vital tool for creating an inclusive financial ecosystem, adding that, there was an urgent need for increased financial literacy.
He cautioned that without adequate knowledge, investors might struggle to capitalise on the advantages of these new digital tools.
Digital advancements
For her part, the Managing Director (MD) of the Ghana Stock Exchange (GSE), Abena Amoah, said the local bourse had made significant strides in digital transformation, having launched its first massive digital Initial Public Offering (IPO), which had attracted over 100,000 investors worldwide subscribing and paying for shares electronically.
That, she said, marked a key step in Ghana's push for financial inclusion and market accessibility, as the GSE continued to introduce innovative trading tools.
However, she said, the success of these digital advancements was heavily reliant on improving financial literacy across the country.
Mrs Amoah further urged stakeholders such as investors, businesses, financial institutions, and regulators to leverage technology to drive growth in Ghana's capital market.
"We must embrace technology as a powerful tool to create a more accessible, inclusive, and resilient financial ecosystem for development. Technology isn't just a tool—it's a catalyst for exponential growth,” she said.