Rural Banks in Ghana are leveraging the digital payment platforms built and managed by the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS) to promote digital financial transactions in rural communities.
GhIPSS’s app payment platform GhanaPay has been key in supporting these banks retain their customers mostly in rural communities and offer them innovative digital payment services.
Launched in June 2022, GhanaPay allows customers to register for mobile money services and choose the financial institution with which they wish to own a wallet.
With this wallet, they are able to make and receive payments, enhancing their digital financial activities.
Rural banks no longer face the threat of losing their customers because they are unable to offer digital financial services like major commercial banks in urban areas.
Banks in Ghana are being forced to re-invent themselves to respond positively to the competitive nature of the digital payment systems, characterized by increased consumer preferences for convenience and frictionless payment options.
By leveraging digital innovations like GhanaPay, rural banks also advance financial inclusion and economic development in remote parts of the country.
And the transition is reaping some benefits. Linda Manu, a customer of Amantin Kasei Community Rural Bank, in the Bono region can now access her bank account even when she is outside the region.
Before GhanaPay’s launch, customers of rural banks could not access their accounts, and banking services were often limited by geographical constraints.
However, the adoption of GhanaPay by rural banks in the Bono and Ahafo Regions has brought some relief.
“I can now withdraw money from my account wherever I find myself,” Akosua said, echoing the sentiments of many satisfied customers.
Bright Ampaabeng, a worker at Dormaa Akwamu also speaks on the usage of the Ghanapay platform, recommending it highly.
“Nsoatreman Rural Bank PLC is the bank I transact business with. The coming on board of Ghanapay has helped me save my transportation fares from my current station to the destination of the bank. This is because I am able to transfer my money from my bank account to my wallet,” he said.
Ampaabeng however revealed that he encountered some challenges while using the Ghanapay platform.
“Sometimes, the system tells you application is down while you urgently need to withdraw money. They have to look at the system well so that it works efficiently.”
Seventeen rural banks in the Bono and Ahafo Regions are thriving despite the competitive banking sector, thanks to their embrace of innovative digital platforms like GhanaPay.
This technology has enabled them to expand their financial services, improve customer experience, and promote financial inclusion.
GhanaPay has been instrumental in facilitating seamless digital transactions, making banking services more accessible and convenient. By integrating such technologies, rural banks are not just surviving but also competing effectively with larger financial institutions.
Suzan Boateng, Bono and Ahafo Regional Manager of ARB Apex Bank, the body that oversees activities of rural banks speaking on the introduction of Ghanapay and adoption by rural banks in the region, said, “It has helped to increase financial inclusion in the regions and has made the banks competitive.”
Madam Boateng disclosed that “Customers of these rural banks are able to transact their business seamlessly no matter where they find themselves. Customers are able to access their account even outside the region of jurisdiction.”
She added, “It has helped the banks to extend and expand their customer base across the regions,” Suzan Boateng noted.
Martin Odame Antwi, Head of Operations at Nsoatreman Rural Bank PLC, speaks on the benefits the Ghanapay has brought to the bank said, “GhanaPay has really helped the bank to retain most of our customers who have moved away from our catchment areas and was finding it difficult to access their accounts. It has also increased the means by which customers access their accounts. The bank, after increasing customer satisfaction with it, gets little commissions on customers’ transactions.”
On challenges using using the platform, he disclosed, ” Sometimes the system fails, there is an Error in connecting to the server.”
Ghanapay users are currently facing challenges with poor mobile connectivity, hindering their ability to access the platform seamlessly.
Suzan Boateng acknowledged this issue and revealed that discussions are underway with telecommunications companies to enhance connectivity.
Another challenge arose from inadequate publicity prior to the platform’s launch, resulting in limited awareness among rural bank customers. To address this, GhIPSS as well as the banks, have intensified sensitization efforts to ensure more customers are informed about the platform’s benefits and services.
