Insurances companies are embracing Mobile Money as a channel for receiving their premiums ,microfinance companies are also using it as a platform for repayment of loans.
Speaking at MTN Mobile Money Month 2016, Stakeholders Conference in Accra, the Manager of MFS Operations Madam Ruth Badoo , stated that MTN is focused on the cashless or cash-lite agenda since it is the convenient way of undertaking financial transactions.
“We seeing the usage of a wider range of services , including bill payment , salary payment , school fees payment, payment for goods and services and many others”, she cited.
According to her, with the improved usage of the service, they decided to revisit the “cashless” agenda to drive home the importance of creating an enabling regulatory environment to support the continued growth of mobile financial services and also enhance financial inclusion.
According to Mr Eli Hini, General Manager of Mobile Money LTD, MTN, from a Policy perspective , there are many benefits that can be directly derived from the implementation of mobile money in the country. However, he cited the following benefits:
– Driving financial inclusion – Increasing Financial Integrity
-Enhancing Consumer Protection and reducing the cost and risk of “cash”.
This he said, it is the responsibility of all stakeholders in the industry led by the central Bank to ensure that the service is provided within the regulatory framework in oder to support industry growth and also protect the consumers from financial loses.
Adding that, the Central Bank needs to adopt a centralised approach to bring on board all payment and banking platforms in their drive towards a cashless society.
Mr. Eli Hini explained that, an enabling policy and regulatory framework creates an open and level playing field that fosters competitions and innovation, leverages the value proposition of both banks and non-banks providers. It attracts investments and allows providers to focus on refining operations and promoting customer adoption.
“Unfortunately , ineffective policies and cumbersome regulatory barriers have had a negative effect on the development of mobile money and the expansion of financial inclusion in many new markets(GSMA Feb 2013)”, he said.
According to him , there is the need, for regulatory bodies to provide the necessary policies that would promote the use of mobile money and thereby make the cashless economy agenda a reality.
The MTN Mobile Money Month Stakeholder Conference attracted some experienced personalities from the financial sector to discuss the issue of an enabling regulatory environment for mobile financial services.
The conference, which formed part of celebrating 20 years of MTN’s operations in Ghana, was on the theme: “Let’s go cashless with mobile money, supported
by an enabling regulatory environment.”
By: Isaac Kofi Dzokpo/NewsGhana.com.GH