Fitch Solutions, in a new data release, placed Ghana 4th in Sub-Saharan Africa with the largest growth in digital bank account ownership.
The increase is, however, low compared to peers globally, an article titled “Navigating the Digital Banking Landscape in Sub-Saharan Africa” said.
It said Sub-Saharan Africa (SSA) has lagged behind other regions in banking sector development but leads in digital banking progress.
Fitch Solutions indicated that Ghana saw a growth of more than 40% in the digital bank account (including mobile money) between 2011 and 2022 to a little over 60%.
The first position went to Mauritius with more than 90% growth, followed by South Africa (82%), and Kenya (74%).
In 5th to 9th were Senegal (54%), Tanzania (50%), Ivory Coast (49%), Ethiopia (47%), and Nigeria (44%).
“We estimate that SSA banking assets will represent 53.0% of gross domestic product in 2024, compared to the emerging market average of 84.8%. Limited access to traditional banking has hindered broader economic participation and growth.”
Fitch Solutions added, “We anticipate that SSA will continue to develop its digital banking capabilities, benefiting households, businesses, traditional and challenger banks, and the broader economy. This article investigates key themes and challenges associated with digital banking in SSA, a topic we previously highlighted as influential in the region’s banking development.”.
The UK-based firm further posited that Nigeria and Kenya stand out as the main hubs for digital banking in SSA, each showcasing unique ecosystems driven by traditional banks and innovative fintech companies. In Nigeria, key players like Kuda Bank and GTBank leverage robust mobile platforms to offer a range of financial services, targeting the unbanked and underbanked populations.
The firm also mentioned South Africa as a country with its advanced financial infrastructure, Ghana with surging mobile money usage, and Tanzania experiencing rapid mobile banking growth.
By: Rainbowradioonline.com/Ghana
