Banks must evolve or be left behind – Analyst

By Rebecca Okine

Banks that fail to adapt to the rising dominance of digital platforms in financial services risk becoming obsolete, economic analyst Emmanuel Boateng has cautioned.

His warning follows the latest World Economic Forum report on the future of global fintech, which projects a major shift from traditional financial intermediaries to digital platforms, especially in emerging markets like Ghana.

Speaking on the Business Breakfast show on Zed 101.9 FM yesterday, Mr. Boateng said the implications are clear: banks must improve customer engagement and adopt digital tools or be overtaken.

“We are talking about platforms that now serve as substitutes for the traditional financial systems we know. If you’re a bank and don’t have a solid relationship with your customers, you’ll lose them,” he said.

The economic analyst stressed that banks fundamentally rely on customer deposits to make loans.

“If you lose your customers, you’re out of business. So this shift is both a threat and an opportunity,” he stated.

Mr. Boateng explained that the opportunity lies in leveraging digital platforms to improve efficiency and accessibility.

He noted that mobile money transactions in Ghana have already surpassed traditional banking activity.

“People prefer using mobile money to carrying large sums of cash into banks. Today, many even store more funds in their mobile wallets than in bank accounts,” Mr. Boateng noted.

While mobile money interoperability between bank accounts and wallets is now common, he criticized fees some banks impose on transfers between a person’s own accounts.

“They aren’t supposed to deduct those charges, but they do. Banks need to address this because it’s a major obstacle,” the economic analyst indicated.

According to the World Economic Forum report, banks that fail to digitize risk becoming mere “utility backbones,” offering back-end services without direct client engagement. Mr. Boateng agreed, saying banks that resist change could easily fall behind.

He pointed out that today’s customers are particularly tech-savvy.

“Anyone aged 45 and below is highly sensitive to digital trends. They prefer mobile money and digital services over walking into bank branches with cash,” the economic analyst emphasized.

To remain relevant, Mr. Boateng urged banks to proactively integrate digital processes.

“Whatever financial trend we see in the near future will build on what’s happening now. If banks don’t align with this shift, they’ll be left behind,” he explained.

The economic analyst added: “The evidence is clear. Flexibility and a willingness to change are no longer optional. Banks must either evolve or risk being pushed out of the financial ecosystem.”