President of the Ghana Association of Bankers (GBA), John Awuah, is predicting a seismic revolution in the country’s financial technology (fintech) ecosystem, whereby banks will metamorphose into huge fintechs.
“This future is not going to be a very distant one; banks in the very near-future are going to be gigantic fintechs, banks,” he stated.
This evolution is what will drive value within the banking system, Mr. Awuah said while speaking at this year’s The Money Summit themed Africa’s robust financial sector; the catalyst for sustainable economic growth.
Speaking as a panellist on the topic, Competition to collaboration; how fintech is shaping the future of finance, the GBA president further predicted the extinction of mobile money agents due to less “transactions truncation” needs.
“Transactions and the supply of money, or the velocity of money, will move seamlessly. So, there’ll not be a point to cash out; when the money hits your account, you’ll transact using the same mechanism to improve on the velocity of money. This is the future we should anticipate…,” he stated.
Collaboration key to driving value
Touching on the need for collaboration, Mr. Awuah said one key strength of fintechs is their ability to anticipate customer needs faster with very little internal constraints – a trait he said makes them ideal partners for banks.
“So, partnership is one of the key areas wherein banks will ride on the agility of fintechs and then fintechs will ride on the banks’ strong infrastructure, so that the two can together work on driving value to the customer,” he said.
To further deepen financial inclusion, Mr. Awuah said a time will come when banks with huge financial strength strategically take over smaller fintechs for greater impact.
This, he said, will help with capitalisation and drive the banks’ products to their customers. “The fintech proposition is a very profitable one, and most of them do not have the financial muscle to invest in key infrastructure in order to drive the volumes of transactions that are out there. So, as banks we can strategically also invest in some of these fintechs; giving them the financial strength to do the right thing and contribute positively to the ecosystem”.
The Money Summit 2023
Under the theme Africa’s robust financial sector: the catalyst for a sustainable economic growth, The Money Summit is a strategic platform powered by the Business and Financial Times (B&FT).
This year marks the third edition, and at a time when the global economy – and more significantly, the local economy – is going through challenges. Many financial analysts, economists and experts in financial markets hold the view that the financial sector is key, and critical to salvaging the ailing economy.
Expected to act as the most comprehensive source of forward-thinking predictions that will be sure to shape the next wave of fintech and future of finance, experts at the Money Summit discussed the forces and ideas reshaping the future of money and the significant role of insurance, pensions and fund managers among others in building a robust financial sector.