Accra, Aug. 25, GNA – Banks that would win in
this era will be those that have partnerships with telcos and other technology
companies and develop products and services around mobile and other new
The findings of the PwC 2016 Ghana Banking
Survey: ‘How to win in an era of mobile money’, has stated. The report was
launched in Accra, on Thursday.
The survey sought the perspective of Chief Executive
Officers of Banks as to the extent to which mobile money is expected to affect
their business and the importance bankers attach to critical success factors in
the delivery of mobile money service.
While the bankers surveyed perceived mobile
money as an opportunity to be explored, they also viewed it as a potential
threat should non-banks be allowed to provide the service in competition with
the traditional banking services.
The survey also identified favourable
Regulations, Technology and partnerships as critical success factors.
“Rather than being viewed as taking part of a
fixed pie, MNOs should be viewed as contributors to an expanding pie,” it says.
“With new solutions come new products, services and new revenue channels.”
Bank executives were unanimous in their view
that Mobile Money has had some impact on the way the business of banking is
There were, however, differences in how bank
executives perceive the scale of impact that mobile money has had on the
business of banking.
More than half of respondents are of the view
that mobile money has moderately impacted the way they conduct business,
raising questions for banks with regard to whether the impact is going to get
stronger or not and how they will respond to it.
“Overall, it became obvious from the
discussions that bank executives are feeling the impact of mobile money on
their business, either positively or negatively,” the survey states.
Despite the opportunities mobile money
presents, a large percentage of respondents viewed it as a threat.
The major threat, according to the banks,
emanates from the potential for telcos and other mobile money operators to
enter into the banking space.
“To most respondents, mobile money is evolving
into ‘banking on your phone,’ it says. “This provides customers with
alternatives to traditional banking and customers are taking advantage of these
“Mobile money is significantly threatening the
payment solutions offered by banks.
Executives believe both bill payment services and point of sale (POS)
payment offerings are currently under threat.
“Bank executives believe that should current
trends continue; banks will soon command a smaller portion of the payments
market compared to mobile money operators”.
Dr Johnson Asiama, a Deputy Governor, Bank of
Ghana, encouraged the banking industry not to see the mobile money operators as
competitors but rather complementary and a vital channel in achieving the
financial inclusion agenda.
He said the BoG would continue to dialogue and
to finetune the regulatory and supervisory framework to ensure that the risks
and vulnerabilities in the system were dealt with.
Mr Vish Ashiagbor, the Country Senior Partner,
PwC Ghana, said three critical factors – Regulation, Technology and Partnership
– were critical.
He said regulation was critical to address and
influence the Bank of Ghana towards any future changes to regulation, while
technology would continue to be pivotal in the era.
Banks must continually evaluate the long-term
benefits of their investment in technology and choose solutions that offer the
best returns on investment, he said.
Mr Ashiagbor said banks could no longer
operate in isolation but they needed to build partnerships with other banks and
with other service providers to expand their reach and deliver services to the
customer in a timely manner.