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Significant surge in internet banking transactions in Ghana

by Vesta Daily
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Significant Surge in Online Banking Transactions in Ghana

Ghana has witnessed a remarkable surge in online banking usage, as evidenced by the latest economic and financial data from the Bank of Ghana (BoG). The value and volume of online banking transactions have increased substantially, highlighting a shift towards digital financial services among consumers.

Key Highlights:

  • Value Increase: The total value of online banking transactions soared by 85.7% in the first four months of 2024, rising from GH¢25.3 billion in the same period of 2023 to GH¢47 billion.
  • Volume Increase: The number of online banking transactions grew by 87.9%, from 3.85 million in early 2023 to 7.2 million in the same period of 2024.
  • April 2024 Surge: In April 2024 alone, the transaction value increased by 125%, from GH¢6.2 billion in April 2023 to GH¢14 billion. The transaction volume for the same month increased by 76.4%, from approximately 1.03 million to 1.8 million.

Reasons for the Increase:

  1. Convenience: Consumers find online banking more convenient than traditional banking methods, leading to increased adoption.
  2. COVID-19 Impact: The COVID-19 pandemic accelerated the shift towards online banking due to lockdowns and social distancing measures, forcing many people to adopt digital banking.

Broader Trends in Electronic Payments:

  • Total Electronic Payments: From January to April 2024, the total value of electronic payment transactions approached one trillion cedis (GH¢933.8 billion).
  • Mobile Money Dominance: Mobile money services led the sector with a transaction value of GH¢779.1 billion, accounting for more than 83% of total electronic transactions. This underscores the dominance of mobile money and the economy’s shift away from cash transactions.

Decline in Unbanked Population:

  • Reduction in Unbanked Adults: Over the past two decades, Ghana’s unbanked adult population has decreased from over 70% to less than 40%. This indicates a significant increase in banking system transactions compared to the pre-2000 period.

Implications:

  • Economic Shift: The increase in online banking and electronic payments signifies a broader economic shift towards digital transactions, improving financial inclusion and efficiency.
  • Future Prospects: Continued growth in digital financial services is expected, driven by ongoing technological advancements and increasing consumer preference for online banking.

Conclusion:

The notable increase in online banking transactions in Ghana reflects a significant transformation in the country’s financial landscape. With more consumers embracing digital financial services, the trend towards a cashless economy is likely to continue, fostering greater financial inclusion and economic growth.

Vesta Daily
Author: Vesta Daily

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