Mobile Money poses no threat to banking industry

Iddi Yire, GNA

Accra, Sept. 02, GNA – The Mobile Money
Service poses no threat to the future of the traditional banking industry in
Ghana, Mr Mike Nyinaku, the Chief Executive Officer of BEIGE Capital, has said.

He said the recent surge in the patronage of
the mobile money services was making some people apprehensive about the future
of the banking sector.

Mr Nyinaku made the remarks at a media
engagement in Accra in reaction to a media report, which paints a glowing
picture of the growth of Mobile Money service in Ghana.

Media reports indicate that mobile money
penetration had seen an astronomical move for the fourth year running with the
2015 value of transaction reaching GH₵35.4 billion, an increment of more than
216 per cent over the previous year’s.

According to the report, in 2014 Airtel,
Tigo and MTN, which are engaged in mobile money service were able to do
transactions worth about GH¢11.2 billion across the country.

The report of a 2016 banking survey,
conducted by PriceWaterhouseCoopers, (PwC Ghana) in collaboration with the
Ghana Association of Bankers, heightens the apprehensions and thus extending
the debate on the future and the direction of the Mobile Money service as
against the traditional role of the banking sector.

However, Mr Nyinaku said notwithstanding the
successes chalked by mobile money service there was no way the role of the
banking sector would be overtaken by mobile money service.

“Mobile Money service is a transaction
enabler, it is not banking so the traditional importance of banking will not be
replaced by the upsurge of the use of mobile money service,” he said.

He noted, however, that the mobile money
service would increasingly become a transaction process enabler in the delivery
of goods and services; and thus, complementing the effort of the traditional
role of the banking sector.


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