Vice President Dr Mahamudu Bawumia has urged the Bank of Ghana not to tie the hands of players in the Financial Technology (Fintech) sector when drafting the Payment System Bill in order to free up their innovative juices.
According to Dr Bawumia, players in the Fintech sector are “free spirits” who require freedom to experiment and innovate in order to come up with solutions geared towards deepening financial inclusion, a key part of the Nana Akufo-Addo government’s plan to formalise the economy.
The Vice President made the case for the Fintechs when he gave the keynote address at the launch of the 10th anniversary celebration of Bond Savings and Loans PLC in Accra on Wednesday June 27, 2018.
“My little advice to the Bank of Ghana is that they should try to resist the temptation to over-regulate the Fintechs, because they are not deposit taking and our mobile payment space is very bank-based so the risk that they present to the financial system is not as high.
Financial inclusion and formalization of the economy is one of the visions “dear to the heart of the government of his Excellency, Nana Addo Dankwa Akufo-Addo,” Vice President Bawumia indicated, adding, “We have been pursuing this agenda of greater financial inclusion and formalization of the economy in many spheres, including the digital address system, automation of clearing services at the port, national identification programme and the recently launched mobile money interoperability system.”
All of these initiatives in the Fintech sector came about because of their ability to innovate, and it would be in the nation’s interest to allow them to continue to do so, the Vice President explained.
“So when we look at the forthcoming Payment System Bill let’s try (not to tie their hands). These are free spirits. Let’s give them the opportunity to innovate. Let’s not bottle them up by certain regulations,” Dr Bawumia stated.
Vice President Bawumia commended Bond Savings and Loans PLC for the “significant strides and growth” chalked over the past 10 years, and challenged them to continue with their mission to expand the reach of financial services through technology to help include the financially excluded as well as bring a larger part of the population into the formal sector.