Mobile Money Operators, fintechs and businesses engaged in online digital transactions in Ghana have been ordered by the Bank of Ghana (BoG) to acquire business licenses before June 2020 to enable them operate in the electronic payment space, or be forced out of business. This directive according to the apex bank is in line with is one of the requirements in the country’s Payment Systems and Services, 2019 (987Act).

The Act which was passed in March this year is to ensure effective monitoring and regulation of digital transactions following an increase in such services. Although critics say that this may stifle business especially start-ups who may not have the funding to pursue the strident registration process, analysts say it is necessary to achieve a certain level of sanity within the system.

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In a bid to monitor real time all electronic transactions of banks in the country, the Ghanaian central bank introduced the database monitoring application called the Vizor which has helped to step up the monitoring of digital transactions within the system.

Statistics from the Bank of Ghana shows that while mobile money accounts have increased to 32 million, Bank accounts currently stand at 12 million with a lot of them being inactive. According to the Head of Payment Systems Department at the Bank of Ghana, Dr. Settor Amediku, consumer protection issues have gained prominence in the digital financial service on account of complexity of digital ecosystem. For this reason, regulatory guidance is required for effective consumer protection.

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Dr. Amediku says they are already in talks with the banks to facilitate the introduction of the database. “Vizor will provide end-to-end solution which permits the bank to collect, process, store as well as report on macro and micro prudential data, statistical data or any other data required as part of the supervisory process” he added.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry