The Bank of Ghana has permitted 50% of the prescribed minimum capital required for existing Fintechs to be held in non-current assets, and the remaining 50% to be deposited in a designated account at the Central Bank, Governor Ernest Addison had said.

The Central Bank in furtherance of its objectives of fostering financial innovation has also taken into consideration the size, nature and characteristics of each financial technology company in prescribing the required minimum capital, governance, and systems requirements for all fintechs operating in Ghana.

Currently, the increasing mobile phone usage has enhanced the appeal of mobile money for payment services and holds prospects for eliminating constraints to financial inclusion.

To meet the myriad needs of consumers of such products and widen the scope for financial technology firms and other non-bank entities in the payment ecosystem, Dr. Addison said his office in collaboration with stakeholders has developed a five-year strategic plan (2019-2024).

The key objects of the strategic plan include developing and implementing a comprehensive and clear regulatory and governance framework; promoting free, competitive and orderly development of the payments eco-system to encourage innovation, deepening financial inclusion and promote financial technologies.

Dr. Addison said the strategy plan also provides for leveraging Ghana’s Fintech capacity to lower barriers to the entry for non-traditional players through the strict implementation of the laws and regulations that support the development of the sector.

The Bank of Ghana’s policy responses to emerging financial technologies he noted will continue to be driven by the inherent risks they pose to the financial stability and ultimately to protect the consumer.

In this direction, the Bank will fully engage all stakeholders and experts in the digital ecosystem to strike the right balance in the supervisory and regulatory frameworks.

Cyber Security directive

Globally, the quest for cashless payments is gradually shifting consumer interfaces from the manual environment to cyber space.

This transition is, however, being threatened by the increased spate of complex cyber security threats which poses systems risks to the financial sector and also to the financial inclusiveness agenda through its technological underpinnings.

To counter these threats to ensure the integrity and operational security of the financial system, the Governor said the Bank of Ghana issued the Cyber Security Directive for compliance by banks and payment service providers to build a robust and resilient digital ecosystem.