Momo Transactions Beat Cheque Transactions In First Four Months Of 2021

 Momo Transactions Beat Cheque Transactions In First Four Months Of 2021

Mobile money transactions far outstripped cheque transactions by approximately GHS232 billion in the first four months of 2021, President Chartered Institute of Bankers(CIB), Patricia Sappor, has disclosed.

She said according to the data from the Bank of Ghana, the value of mobile money transactions for the first four months of 2021 totaled GHS301.1 billion, while cheque transactions over the same period amounted to GHS68.3 billion.

Rt Rev. Sappor, speaking at the 25th National Banking Conference, said if the trend continued, the total value of mobile money transactions would surpass cheque transactions by more than the GHS389 billion recorded to end 2020.

The conference provided the forum for an in-depth interrogation of topical issues in relation to the economy in general and the banking industry.

The event was on the theme: “The Digital Economy of Ghana: The Strategic Role of the Banking Industry.”

She said, “I must quickly add that the above developments have also enhanced the country’s quest to continue to improve financial inclusion among citizens.”

The CIB President said in view of the above “we saw many banks in Ghana rise to the occasion at the height of the COVID-19 pandemic by ensuring that digital platforms were readily available and working seamlessly to prevent any interruption in banking services to customers.”

She said it was important to note that the banking industry was among the few in the country which was future-ready for COVID-19 by actively driving the adoption of digital products across its customer base.

Ms Sappor said” this buttresses the strategic role of banks in Ghana’s Digital Agenda which the Vice-President, Dr Mahamudu Bawumia is impressively leading.”

“The Governing Council congratulates you on your drive to see a fully digitized economy for Ghana,” she added.

She said many banks were working with the National Identification Authority to create Application Programming Interfaces to connect to the national database which would assist in on-boarding clients as well as the implementation of Know-Your-Customer requirements and reviews.

Rt Rev. Sappor said with the national database in place, issues of banking fraud, as well as the risks associated with lending to clients should be mitigated considerably thereby reducing the costs of borrowing by banks.

The President said deepening the digitalization in the banking industry would enhance the ability of many more individuals and businesses to access credit irrespective of their locations once they meet the necessary credit criteria required by banks.

Chief Executive Officer, Ghana Association of Bankers, John Awuah, said, “we live in a world, when digital knowledge has become imaginably vast.”

He predicted that sooner than later, banks would turn to other means to transform and perform the services undertaken at branches.

The CEO said community banking, particularly from large institutions, would become more cost efficient and less personal.