New strategy to drive cash-lite transactions
Standard Chartered Bank (SCB) Ghana, has handed over a national payment strategy to the Bank of Ghana (BoG) as part of initiatives to help the country acquire a cash-lite status.
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Going cash-lite means there will be less dependence on cash for transactions on the various payment platforms in the country and is expected to contribute in transforming the economy into a cash-lite society, while helping to promote financial inclusion.
Although the country initially wanted to go cashless through the introduction of cashless payment systems, the feedback was not too positive as people still preferred to use cash for their transactions.
At a ceremony to hand over the document, the Chief Executive Officer of the SCB, Ghana, Mr Kweku Bedu-Addo, said the strategy document was a proposition of a mechanism by which Ghana could gradually move towards a cash-lite status.
“The implementation of the framework should help Ghana witness a drastic reduction in the dependence on cash to the more sophisticated and easy reliance on electronic payments,” he said.
Currently, the country’s core payment system infrastructure includes the Real Time Gross Settlement (RTGS), Automated Clearing House (ACH), the national switch and mobile platforms.
“These platforms, the strategy proposes, will serve as foundations on which further enhancements and payment services can be built to achieve the twin goals of a cash-lite economy and financial inclusion,” Mr Bedu- Addo said.
The Deputy Minister of Finance, Mrs Mona Quartey, said the strategy would provide an appropriate roadmap for the country to transit from cash dominance to cash-lite.
Recommendations
The National payment strategy document proposed a governance structure that addresses the specific focus areas under an umbrella of a Ghanaian Payment Council.
The structure, it said, would be formalised with working groups to carry out the more intense and regular processes in driving the cash-lite status and would also preside over issues such as standards, pricing, determining priorities and legal drafting.
Another recommendation of the document was for the country to have an effective regulation and penalties regime for non-compliance with any payment directives by the council.
It also recommended a greater relationship between the national telecommunications agency and the BoG in the area of the mobile money agenda and also make sure that all mobile payments were subjected to approval by the Central bank and the National Communications Authority (NCA).
Role of Stanchart
Standard Chartered acted as a partner to the BoG to support and provide guidance in developing a National Payments Strategic blueprint.
The bank’s internal payment experts teamed up with internationally acclaimed consultant, Capgemini, BoG and the Ghana Interbank payment and Settlements System (Ghipps) to develop the strategy paper.
Consultations were also made with key stakeholders across key sectors of Ghana’s economy, including banking, telecoms and other private and public institutions.
The MD of Stanchart explained that the bank was excited to be part of this initiative as it strived to become the front runner of innovation in banking across Africa. He said a concerted effort was expected by the BoG to drive the implementation of the recommendations and suggestions to ensure a smooth take-off.
