Economist Professor Godfred Bokpin has called for stronger collaboration among Ghana's fintech companies. He warns that fragmentation within the sector is hindering efforts to combat digital fraud and build a resilient digital economy. This call came during the JoyNews’ Digital Economy Forum on Wednesday, July 22.
Professor Bokpin stated that addressing digital fraud requires an ecosystem-wide approach. This approach must extend beyond the interests of individual players. The digital economy impacts millions of Ghanaians, including vulnerable groups who rely on digital financial services. Protecting these users is crucial as the ecosystem expands.
This issue fits into Ghana's broader economic story of rapid digital transformation. The country has seen significant growth in mobile money and other digital payment platforms. However, this growth also presents new challenges related to cybersecurity and financial crime. The Bank of Ghana has been implementing regulatory reforms to strengthen the financial sector, including the digital payments space.
“What I feel is lacking is that there isn’t much coordination among the fintechs,” Professor Bokpin noted. He added, “Either they see themselves as competing, but this is a bigger pie that is growing. If they are able to come together and form an association, they will be able to share information and negotiate their way through from a position of strength.” He believes a unified body would benefit regulation due to the shared ecosystem.
The implications are significant for Ghana's financial stability and economic growth. Increased digital fraud erodes public trust in digital financial services. This could slow down the adoption of innovative financial technologies. Decision-makers and regulators will need to encourage greater industry cooperation. They must also continue to adapt regulatory frameworks to the evolving digital landscape.
Professor Bokpin acknowledged the different business models of banks and fintech companies. Banks have been part of Ghana’s financial system for decades. Fintech firms, however, are still evolving. Regulators must therefore adopt proportionate approaches. They also need to gather data continuously to identify weaknesses across the digital payments value chain. This will help in building a more secure and efficient system.
The economist praised the Bank of Ghana’s regulatory reforms. These reforms include structural changes that allow the central bank to focus more effectively on the digital payments ecosystem. This focus also extends to its linkages with the wider banking sector. This proactive stance by the central bank is vital for safeguarding the integrity of Ghana's digital financial infrastructure. A unified front from fintechs would complement these regulatory efforts, creating a more robust defense against fraud.