Telecommunications Industry Refute Claims of Making Traditional Banks Unattractive With Mobile Money Platforms

Banks in the country are accusing the telecommunications industry of waving into their working space and making traditional banking system unattractive to the ordinary Ghanaian.

According to these banks, since the introduction of the mobile money system, their client base has reduced and banking transactions have also drastically fallen as a result of the penetration of telecommunications with the mobile money platforms.

The introduction of this platform has made many to subscribe to the system to avoid joining long queues as well as waiting for long hours to cash out money as well deposit money into their respective accounts.

This accusation comes at the back of the launch of the mobile money interoperability in less than a week which will allow a seamless transfer of cash from one network to another as well as from banks account to mobile money wallets.

However, the telecommunication industry players have refuted the claims that, they are taking the place of traditional banks since the inception of the mobile money platform.

However, the Telcos believe that, the new system will help reduce the number of people not captured within the banking population and is upbeat with the move.

Speaking on the issue, the Director of Vodafone Cash, Matinson Obeng- Adjei, disagrees that this is an attempt to take over the role of traditional banks.

Describing this as a complementary service, he explained that, “we are just creating easy access for customers to transfer money from their bank accounts to their wallets and vice versa…I do not think it is an attempt to take over the role of banks.”

Nevertheless, the Business Development Manager of MTN, Abdul Majeed Rufai, revealed that, there is extensive engagement for the industry players to input into the operations of the platform.

Emphasizing that, “We have been heavily involved as operators; all the stakeholders within the telecom industry as well as the Chamber of Telecommunications.”

According to Data from the Bank of Ghana, as at March 2018, the total volume of transactions reached 1,294,491,444 while between 2012 and March 2018, the total value of transactions increased drastically from 594 million cedis to 208.1 billion cedis (GH¢208,197,640,000).

For him, the Chief Executive Officer (CEO) of Ghana Interbank and Settlement systems (GhIPSS), Archie Hesse, he believes the interoperability will help in attaining the financial inclusion drive as targeted by the government hence expectant of the new platform.

 

 

 

Source: Ishmael Barfi/wisetvonline.com