FinTechs to Lead Customer Finance as Banks Reposition for Back-End Dominance – Fintech Association President

Ghana’s financial services landscape is undergoing a quiet but powerful transformation as FinTechs are steadily becoming the go-to providers of customer-facing financial solutions, even as traditional banks recalibrate their roles.

According to the President of the Ghana Fintech and Payment Systems Association, Mr. Martin Kwame Awagah, this shift is not a passing trend but a structural evolution that is redefining how Ghanaians engage with financial services.

“Banks are not going anywhere; they’ll be with us for the long haul, but their operations and business models are changing. Banks will focus more on back-end compliance and regulatory obligations, while FinTechs take the lead in delivering innovative, customer-focused solutions,” Mr. Awagah said in an interview.

Digital Infrastructure Driving FinTech Expansion

Ghana’s burgeoning FinTech ecosystem has flourished on the back of widespread mobile penetration, improved internet connectivity, and transformative platforms like GhIPSS, GhanaPay, and mobile money interoperability. As of 2023, the Bank of Ghana reported over 19 million active mobile money users, with more than 1.5 billion digital transactions annually, numbers that underscore the shift in consumer preferences.

“Even feature phones can now access mobile money services. This was impossible years ago when traditional banks couldn’t reach certain segments of the population,” Mr. Awagah noted.

He emphasized that mobile-based services have bridged gaps that conventional banking could not, especially in rural and previously excluded communities. The ability to use just a mobile number to access financial services has significantly deepened financial inclusion across Ghana.

FinTechs Empowering the Everyday Consumer

Beyond access, FinTechs are empowering Ghanaians with real-time financial management tools.

“In the past, you had to queue at the bank or even pay for a printout of your transaction history. Now, your mobile phone gives you instant access to your financial records at no cost, with more convenience, speed, and transparency,” Awagah explained.

This shift has democratized finance, giving individuals more control and visibility over their money and allowing them to make smarter, faster financial decisions.

However, the rise of digital finance has not come without risks. Awagah acknowledged that digital fraud has seen a 5 – 7% uptick, according to recent Bank of Ghana reports. He called for increased public education around cybersecurity and safe digital finance practices.

“As more people manage their own banking through mobile devices, we need to ensure that they’re equipped with the knowledge to do so securely and responsibly,” he cautioned.

Collaboration, Not Competition

While FinTechs have stated that they are taking the lead in innovation, Mr. Awagah dismissed the notion of banks and FinTechs being at odds.

“This is not a turf war. It’s an ecosystem shift. Collaboration between FinTechs and traditional banks will be key to building a resilient and inclusive financial future,” he noted.

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