Telecos won’t convert to banks — Airtel MD
The Managing Director of Airtel Ghana, Mrs Lucy Quist, has stated that telecom companies that are providing mobile money services have no intentions of converting into banks.
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She said the focus of the telcos was to provide a network infrastructure and distributive system that served as catalysts for innovation, reach and scalability and not financial modelling.
Mrs Quist said this when she addressed delegates at the 20th National Banking Conference which was on the theme: “The Emerging Mobile Money business in Ghana – the role of telecom companies.”
In August this year, the PwC released the 2016 Banking Survey on the theme: “How to win in an era of mobile money,” which indicated that banks considered mobile money operators as partners because of their ability to mobilise deposits through the use of technology, but at the same time increasingly were worried that mobile money operators will metamorphose into banks or develop to the point where they could operate independently of banks.
Mrs Quist, however, pointed out that what was rather likely to happen was more collaboration to offer consummate solutions to customers who stand to benefit the most.
“A few years ago, you could only send and receive money through the Mobile Money platform. Now there are unlimited services – bill payments, transfer of funds between mobile wallets and bank accounts, purchase of T-bills, etc. and the possibilities will grow in the years ahead,” she stated.
She said the mobile money platforms, by its architecture and operating model, was not designed to operate outside the financial system but built to work effectively with banks and other financial institutions to provide limitless possibilities and drive sustained value for the entire ecosystem.
Calls for more collaboration
Mrs Quist, therefore, called for more collaboration between financial institutions and mobile telecom operators to create prosperity for Ghanaians and everyone within the mobile money ecosystem.
She indicated that the mobile money business had come to stay and financial institutions must embrace and leverage the platform through strategic partnerships to ensure more Ghanaians were financially included.
“The Mobile Money platform provides a unique opportunity for collaboration between financial institutions and operators in the country to create and perpetuate prosperity for everyone in the ecosystem. For instance, for customers, the platform provides convenience, value added services and innovative lifestyle solutions that meet their needs now and in the future,” she noted.
“For agents operating the service, it is a source of employment and livelihood for themselves and their families, and for financial institutions, the platform is a major mobiliser of deposits,” she added.
Employment
The Mobile Money Platform has also provided employment to thousands of Ghanaians.
According to the latest report released by the Bank of Ghana, there are currently more than 108,000 registered agents across the country.
Mrs Quist pointed out that for many of these agents, the platform was their main source of income and for others, it was a second stream of income.
With more collaboration, she said, the platform had the potential to contribute significantly to job creation, livelihood support and empowerment.