Ghana Card, Bawumia’s interoperability reforms behind Ghana’s 80% account ownership – Dr Bannor

Dr. Frank Bannor, Director of the Institute of Economic Research and Public Policy (IERPP), has praised Dr. Mahamudu Bawumia's digitalization strategy, specifically the Ghana Card and mobile money interoperability, for significantly increasing financial service accessibility in Ghana. The Deputy Finance Minister, Thomas Nyarko Ampem, recently reported that over 80% of adult Ghanaians possess financial accounts, although only 22% are deemed financially stable.

Dr. Bannor highlighted that these accomplishments reflect the influence of Bawumia's digital financial reforms, particularly the integration of mobile money platforms, conventional banking services, and biometric payment systems. The Ghana Card was a crucial element of the transformation, offering a reliable national identification system that simplified identity verification and facilitated access to formal financial services for many Ghanaians, particularly those outside the formal banking sector.

On July 1, 2022, the Bank of Ghana made the Ghana Card the exclusive identification document for financial transactions at all licensed and regulated financial institutions, including banks, specialized deposit-taking institutions, and payment service providers. Dr. Bannor asserted that this move aligned with Bawumia's vision of leveraging digital technology and national identification to expand financial access to more Ghanaians.

In December 2017, Bawumia had explained how mobile money interoperability would enable virtually every Ghanaian to access banking services, even without owning a conventional bank account. Dr. Bannor explained that the system allowed funds to move between various mobile money networks, mobile money wallets, traditional bank accounts, and the e-zwich biometric payment platform. He quoted Bawumia as stating that with the system's triangular feature, anyone with a mobile account essentially possesses a bank account.

The Ghana Card further strengthened this arrangement by providing identity verification necessary to connect individuals to regulated financial services, while interoperability allowed users to transact across different financial platforms using their mobile devices. Dr. Bannor emphasized that the combination of accessible digital identification and interconnected payment systems had advanced financial inclusion beyond the traditional banking environment.

Reflecting on the criticism that Bawumia's financial inclusion proposal received in 2017, Dr. Bannor noted that the achievement demonstrated the importance of visionary leadership and the ability to execute innovative policies. He stated that the critics had failed to recognize the potential of mobile money interoperability in bridging the gap between conventional banking and mobile financial services.

According to him, the development proved that financial inclusion did not necessitate every individual visiting a banking hall or maintaining a conventional bank account before accessing essential financial services.