BoG warns MoMo operators against high cost of services

Company News of Friday, July 12, 2019

Source: Myjoyonline.com

2019-07-12

The Bank of Ghana (BoG) has urged telecom operators to consider the costs of commercial transactions on the mobile money platform.

The mobile money service has been in place for years, and while revenue margins have doubled, concerns have been raised about the cost of transferring cash.

Dr. Maxwell Opoku-Afari, Senior Deputy Governor of the Bank of Ghana, told a stakeholder meeting on mobile money that the competitive prices of mobile money services would strengthen financial inclusion.

"The success of mobile money transactions on financial inclusion can not be overstated, but there are still opportunities for expansion and we need to focus on areas such as service pricing." to promote competitive practices that promote increased use. Overall, market players are seeking to reduce costs and increase access channels to make digital financial services affordable for the general public, "he said.

According to him; "Banks have tremendous opportunities to leverage the more than 30 million existing mobile money accounts to extend the reach and attractiveness of electronic payments, to offer more innovative payment products that offer convenience." , simplicity and speed at minimal transaction costs, as well as efficiency means of providing financial services even in remote areas.

This will help strengthen financial inclusion, promote the country's monetary agenda and, most importantly, strengthen financial intermediation. "

Eli Hini, head of mobile money services, explained in turn the meeting of MTN stakeholders that the cost components involved mobile money.

He cited "agent requests" and "capital investments" in the mobile money service as crucial considerations in informing decisions about the cost of the transaction.

At the same time, Fidelity Bank CEO Julian Opuni urged banks to take advantage of recent trends in financial technology to help them strengthen their technology.

MTN's mobile money stakeholder meeting aimed to badess its impact on financial inclusion in Ghana.

The technology of mobile money has evolved and has been accepted by the public. In almost ten years, she has made a significant contribution to financial inclusion in the country.

For example, the number of mobile money accounts reached 32.6 million in December 2018, compared with 3.8 million in December 2012. Total floating balances in December 2012 amounted to 19.6 million GH, compared with 2.6 billion GH in December 2018.

Currently, the mobile money portfolio is used for the transfer of funds to the country, the payment of goods and services, the payment of utility bills, the payment of salaries, micro-credit and microinsurance services.

In May 2018, the payment and settlement system is strengthened with the successful implementation of interoperability of mobile money. As a result, banks can now rely on the existing 396,599 mobile money agents to serve the unbanked.

In addition, banks have enormous opportunities to leverage more than 30 million existing mobile money accounts to extend the reach and attractiveness of electronic payments, to offer more innovative payment products. offering convenience, simplicity and speed to minimal transaction costs, as well as effective ways to provide financial services, even in remote areas.