Home | Goldstreet Business
Friday, March 24, 2023
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result

Understanding digital financial services

April 3, 2019
in Uncategorized
0
Share on FacebookShare on Twitter

All over the world, there are over 2.5 billion adults who do not have access to banking and financial services effectively excluding them from the formal economy, and making them unable to extricate themselves from the poverty cycle.

Digital financial services (DFS) can drastically transform the lives of many of the World’s poor and present an opportunity for including unbanked populations without them having to access traditional banking and financial infrastructure as we know it.

RELATED POSTS

DDEP presents a silver lining we must grab with both hands — Abena Amoah 

Restore confidence in the economy — GUTA 

Digital financial services can be described as an array of financial services, which are offered and delivered through digital means, including savings, insurance, payments, credits to remittances.

Increasingly, we are recording mobile financial services (MFS) as one of the dominant digital channels in the digital financial services ecosystem.

One critical advantage of digital financial service is its ability to drastically cut the cost for the client as well as the service provider.

How does it work?

The core of digital financial services is a heavy dependence on new digital technologies to provide services to the unbanked population.

It relies on alternative distribution channels (ADC) enabled by digital technologies.

In practice we can name online or internet banking, electronically enabled cards, Point of Sales (POS) devices, tablets, biometric devices, automated teller machines (ATMs), near-field communications (NFC)-enabled devices, mobile apps, mobile phones (feature phones and smartphones) as well as other digital agent networks all combine to provide on the go financial service and ensure that end users can consume financial services without setting a foot in a traditional bank.

There are three essential components of digital financial services; a digital transactions platform, retail agents and devices.

Typically, a customer can connect electronically to the platform directly or indirectly using third-party intermediaries and an appropriate device to perform a myriad of financial services.

A combination of software and hardware and related systems enable clients to perform transactions on devices such as making or receiving payments, transfers or store value if connected to a regulator-approved bank or non-banking system.

The Digital transactional platform comes with a number of capabilities such as payment systems, which enable transactions between clients and related parties, voice and data communication network and identity systems. Some DFS systems support the use of biometrics as part of an authentication system which recognises and validates identities using biometric data.

Another key component of digital financial services system is an electronic device such as POS, mobile or tablet, which serves as the interface for transactions. Such devices connected to communication networks enable financial and client data to be transmitted electronically during transactions.

Retail agents are also a very important component of the digital financial services ecosystem, they provide services to clients using digital services, you can think of them as a teller in the bank.

Digital financial services provide advantages such as easier access to formal financial services using electronic means, lower costs of the transaction, reduced risk of loss, theft occasioned by cash-based transactions and increasing savings culture which can support access to credit facilities in the long run.

On the flip side, digital financial services can pose challenges such as novelty risk where end users with low digital literacy are not able to independently access digital financial services, so have to rely on third parties who they have to share account passwords with; an unsafe practice.

Furthermore, some agents in the digital financial value chain, may not operate under any customer care standards, therefore, clients are not given the best of services and often do not have any formal complaint mechanism in place when they have challenges with these agents.

Lastly, since digital financial services rely heavily on technology, any disruption of the network or damage to device will mean clients are not able to access services.

There is a need to strengthen the Digital Financial Services ecosystem which is made up of users, businesses, government agencies and non-profit groups; the providers (banks, other licensed financial institutions, and non-banks), supporting parties such as technology and other infrastructure providers such as mobile phone companies and regulatory bodies, by effectively coordinating activities to ensure they can all work seamlessly together.

Using new digital technology, especially mobile phones, presents a huge opportunity to offer cost-effective financial services to millions of persons who are excluded from the formal financial services sector.

It means this previously unbanked population can now access financial services through digital channels providing them with opportunities for wealth creation.

Although digital financial services cannot solve all the issues related to making the economy more cash-light, it presents a huge potential to transform our predominate informal economy to a more formal one and thus increase economic growth and sustainable development of our country.

The writer is the Director of Innovations at Penplusbytes.org e-mail: kwami@penplusbytes.org 

By Kwami Ahiabenu

facebookShare on Facebook
TwitterTweet
ShareTweetShare

Related Posts

DDEP presents a silver lining we must grab with both hands — Abena Amoah 

DDEP presents a silver lining we must grab with both hands — Abena Amoah 

March 22, 2023
Restore confidence in the economy — GUTA 

Restore confidence in the economy — GUTA 

March 22, 2023
Ghana’s economic outlook to remain negative until fiscal economy improves – Fitch

Fitch upgrades Ghana’s rating to ‘CCC’

March 22, 2023
Global Chamber of Business Leaders Appoints Laila Rahhal El Atfani As Member of Board of Advisors

Global Chamber of Business Leaders Appoints Laila Rahhal El Atfani As Member of Board of Advisors

March 22, 2023
GRA monitoring team recovers over ¢85m revenue shortfall

GRA monitoring team recovers over ¢85m revenue shortfall

March 20, 2023
Next Post

Public Procurement Authority rolls out Annual Procurement Forum for stakeholders

Tema Port ready to deploy Ghana Trade App for online duty payment - Veep

Archives

<
March 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
  12345
6789101112
13141516171819
20212223242526
2728     
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

DDEP presents a silver lining we must grab with both hands — Abena Amoah 

DDEP presents a silver lining we must grab with both hands — Abena Amoah 

March 22, 2023
Restore confidence in the economy — GUTA 

Restore confidence in the economy — GUTA 

March 22, 2023

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.