President of the Ghana Association of Bankers (GBA), John Awuah, predicts a seismic revolution in the country’s financial technology (fintech) ecosystem, whereby banks will metamorphose into huge fintechs.
And, to him, that future is not going to be a very distant one. Mr. Awuah noted that the revolution is what will drive value within the banking system.
The president of GBA spoke as a panellist at B&FT’s 3rd edition of the Money Summit event held on Tuesday, on the topic ‘Competition to Collaboration; How fintech is shaping the future of finance’.
He further predicted the extinction of mobile money agents due to less “transaction truncation” needs.
To deepen financial inclusion, Mr. Awuah said a time will come when banks with huge financial strength strategically take over smaller fintechs for greater impact.
Financial analysts, economists and experts in the financial market sector view the financial sector as key, and critical to salvaging the ailing economy.
Managing Director-GCB Bank Plc., Mr. Kofi Adomakoh, seems to agree with this eventual transition view, since the mobile wallet service of GCB Bank, G-Money, has achieved significant growth in customers – surpassing the two million mark as the company now shifts focus toward collaboration and innovation within the financial sector.
“It is through the Fintechs, the technology they present, that we are able to collaborate in delivering improved and more convenient services to our customers. It has become the order of the day in the retail space.”
Mr. Adomakoh stressed the importance of partnering with fintech companies that possess the necessary technology and expertise to deliver services effectively.
“By collaborating with fintechs, we can provide our customers with convenient, cost-effective services,” he observed. Mr. Adomakoh also highlighted the importance of striking the right balance between regulations and fostering innovation.
It is important to have the type of regulation that enables banks to work with fintech within the confines of a fair shake, Mr. Adomakoh emphasised.
The GCB-MD believes G-Money is poised to establish itself as a significant player in the evolving financial landscape. Partnership is one of the key areas wherein banks will ride on the agility of fintechs, and then fintechs will ride on the banks’ strong infrastructure for win-win situations.
