Fintechs can do more to spur economic growth – Oppong
By Isaac AIDOO, Accra
THE Head, Fintech and Innovation at the BoG, Mr Kwame Oppong, says there is more financial technology companies (Fintechs) could do to spur economic growth in Africa and beyond.
Fintechs, he indicated “can drive an effort to bridge the rural –urban divide and enable residents of both regions to participate in the formal sector.”
“The industry can help resolve complexities that are associated with cross-border transactions and trade and support the growing demand for sustainable and responsible finance,” he told his audience at the 2023 Africa Money and DeFi Summit held in Accra on Tuesday.
This is the second edition of the Summit after the success of the maiden one in Ghana in 2022.
Speaking on the theme, ‘Leveraging Fintechs for economic growth,’ Mr Oppong recounted the huge impact fintechs had made on Africa’s financial sector and economies.
According to him, Fintechs had emerged as powerful tools for financial inclusion and economic growth.
“From mobile payments to blockchain technology, African fintech innovators are harnessing digital solutions to overcome long standing barriers to economic progress. Fintechs have advanced financial inclusion by creating access to financial services particularly in underserved and remote areas. Mobile banking, mobile money and digital payment platforms have enabled people without traditional bank accounts to participate in the formal financial sector.
Fintech has enabled access to credit, provided support for Small and Medium Enterprises (SMEs) and increased efficiencies in financial service delivery beyond the fact that it has promoted innovation, competition and enhanced things that are as basic but critical as revenue mobilisation .
Central banks must support responsible growth, operation of industry
Mr Oppong acknowledged that fintechs cannot thrive in a vacuum especially as it is the application of technology and a regulated industry which is finance. As such central banks and financial regulators must see this as a new era and see also as an opportunity and challenge to provide the accommodating and nurturing, regulatory environment for responsible innovation.
BoG’s regular engagement with fintechs commendable
Founder of the Africa Money and DeFi Summit, Mr Andrew Fassnidge, commended the BoG for its increased engagement with the local fintech communities as well as the Bank of Rwanda. The main purpose of the summit, he indicated was to pool fintech leaders, investors, regulators to do business.
eCedi hackathon launched
At the same event, the BoG in collaboration with EMTECH Solutions Inc. announced the launch of an eCedi hackathon, to provide opportunities for developers and innovators to design innovative solutions that explore various use cases of a Central Bank Digital Currency (CBDC).
The initiative is an innovation challenge set to run for a 12-week period, during which innovators will brainstorm to come up with solutions to address financial inclusion challenges in Ghana.
