…doubts it offers enough protection of local firms
The Fintech Association in the country has questioned the effectiveness of the draft policy on digital financial services.
At the 10th edition of the Knowledge Forum, themed; ‘The Role of Fintechs In Driving Ghana’s Cashless Economy’, the representative of the Association, Albert Nana Dapaah-Yeboah said the association doubts if the draft policy provides protection to local fintech firms.
Dapaah Yeboah said the policy, when accepted will give a lead to fintech firm from other countries to come into the country.
“The policy is silent on the protection of the fintechs in Ghana, who are making frantic efforts to build the ecosystem,” he stated.
“We are not afraid of competition, but we ask that as we dialogue, there should be clear policy to protect the gains that we have made.”
He said some fintechs, starting in 2007, have struggled in terms of capacity, recognition in the market and collaboration with the banks, which some time ago, were very reluctant to partner the fintech firms.
During the launch of the mobile money interoperability, the Vice President, Dr. Muhammadu Bawumia announced that merchants in the country would be able to use PayPal by the second half of 2019. It is also expected that by first half of 2020 Ghanaian consumers will be able to make payments for goods and services online by their PayPal accounts
Outlining some expectations of the association, Dapaah-Yeboah called for some strategic measures including making it possible for fintechs to grow through regulations and policies.
However to further strengthen the payment systems in the country, the Bank of Ghana is introducing an omnibus Payment Systems and Services Bill, which is currently before Cabinet.
The passage of this bill into Law is expected to further improve the regulatory environment and provide additional support for emerging digital financial services while minimizing related threats associated with financial inclusiveness.
This new law will provide for non-banks to establish, own and manage e-money business in the form of a separate entity to be supervised by the central bank.
This will promote innovation in the design of new secure electronic money products and payment services and increase competition in the electronic money business; which is expected to open up the electronic money space to engender financial inclusion and help to reduce poverty.
By Joshua W. Amlanu |goldstreetbusiness.com
