Financial Fair calls for deepening of financial literacy

The fourth edition of the ‘Financial Fair’ has opened in Accra with a call on financial institutions to prioritise the financial literacy of customers to deepen financial inclusion improve financial capacity.

Speaking on the theme, “Making Prudent Financial Decisions in Time of Adversities”, representatives from regulatory authorities in the financial sector urged stakeholders within the sector to take keen interest in the welfare of their customers, who were helping to stabilise the economy with sound financial decisions.

Pro Vice-Chancellor of the Ghana Communication Technology University (GCTU) Prof Ebo Hinson called on financial players to “act in ways that give your customers comfort, that makes them understand that in the relationship you have with them they can bank on a level of knowledge and competence to guarantee their safety in the transactions they do.”

He warned financial institutions to be wary of the fact that “the competition is now across sectors, not confined to one sector and with that mindset, issues about customercentricity come to the fore if we are going to survive.”

According to Prof Hinson, “the days when commercial banks competed with other commercial banks are gone. Nowadays with the same pocket of funds, all you need is short, medium or long term investment horizon, you can go anywhere.”

Mr Benjamin Torsah-Klu, Chief Economics Officer, who spoke on behalf of Mr Ken Ofori- Atta, the Minister of Finance, said the liberalised nature of the financial sector necessitated financial education to supplement financial consumer protection awareness and the promotion of fair and equitable financial services.

Doing so, he noted, would increase transparency and foster consumer confidence in the financial sector.

He observed that there was a huge financial literacy gap among Ghanaians at a time when more financial products and services were becoming more complex with consumers bearing the risk of using those products and services when they took financial decisions.

“A recent survey conducted by the Ministry of Finance on the demands and use of financial services showed that 40 per cent of Ghanaians have low financial capability and in this regard government and regulators continuously work to create financial awareness,” he said.

“The effort in promoting prudent financial decision, therefore, complements other initiatives of government to improve competitiveness and survival rate of our local industries that have remain very low over the years,” he said.

Mr Augustine Amoako Donkor, Head, Conduct Supervision, Financial Stability Department of the Bank of Ghana (BoG), said the Central Bank had an objective of having informed and satisfied consumers that were treated fairly and respected.

He said it was in that regard that the Bank had over the years abolished certain unwarranted fees and charges, embarked on marketing monitoring activities, and introduced consumer protection measures prompting service providers to put mechanisms for collecting and addressing customer grievances.

“These include the product disclosure and transparency rules for credit products and services,” he said.

Mr Samuel Ogyiri Sackey, Chairman of the Executive Planning Committee of the Fair, said the “turbulence” experienced in the form of the financial sector clean up and the Domestic Debt Exchange Programme called for the ceaseless engagement of the Ghanaian public to rebuild confidence in the sector.

“We need to consciously strategise to rebuild confidence in our market and the products thereof,” he said.

The Fair is being organised to promote financial literacy, stakeholder engagement and the showcasing of relevant financial products to the public.

Activities lined up for the event include a two-day seminar at the main auditorium of University of Ghana Business School (UGBS) on October 11 and October 12 and a fair, which will concurrently take place at the UGBS and Accra City Hall from October 11 to October 13, 2023.

There will also be a Gala and Recognition night at the Vice-chancellor’s office on October 20.