Telcos and startups are eating banks’ lunch—and regulators are ringing the alarm bell
Mobile money isn’t just winning in Ghana—it’s crushing the old guard.
Traditional banks are barely hanging on to relevance as telecom-led platforms and fintech startups dominate digital payments in the country. Now, the Bank of Ghana is stepping in, urging banks to stop playing defense and reclaim their turf before it’s too late.
At a high-level industry event held Tuesday in Accra, Governor Dr. Johnson P. Asiama didn’t sugarcoat the problem. “The future of banking is open, not siloed,” he told a room full of banking executives at the Ghana Association of Banks (GAB) and ABSA Ghana’s Thought Leadership Forum.
And the numbers back him up. According to fresh data from the central bank’s March 2025 Summary of Economic and Financial Data, mobile money platforms now process a staggering 97% of all digital transaction volumes in Ghana. They also account for 72% of the total value of those transactions. Banks, meanwhile? Less than 1% of transaction volume is routed through their digital channels.
It’s a painful shift—and it’s happening fast.
A Changing Battlefield for Digital Finance
This isn’t a simple market trend. What’s unfolding in Ghana is a structural transformation in how people interact with money.
Dr. Asiama made it clear: banks are being outpaced in a game they helped create. Mobile money was initially a support act. Now it’s the main show. And fintechs, with their fast product cycles and customer-first design, are crowding the stage.
The Governor didn’t mince words about what’s at stake either. Banks risk fading into the background, their physical branches and legacy systems rendered irrelevant as customers flock to more nimble, app-based alternatives.
One sentence from his speech stood out like a siren: “If you’re not leading in digital finance, you’re not in finance anymore.”
Who’s Winning—and Why?
So why are telcos and fintechs running circles around traditional lenders? It boils down to three things: speed, reach, and trust.
Banks still rely heavily on brick-and-mortar operations, while mobile money is, quite literally, in everyone’s pocket. Telecom operators have leveraged their massive subscriber base to push financial inclusion to remote areas where banks barely exist. Fintechs, meanwhile, are building sleek apps that solve real pain points—like splitting bills, sending remittances instantly, or buying goods with a QR code.
And here’s the thing: people trust them.
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MTN Mobile Money now reaches more than 18 million active users
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Zeepay, a Ghanaian fintech, has expanded to 20+ countries
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Bank apps, by comparison, see much lower user engagement
Ghanaians, especially the younger ones, are voting with their thumbs. And banks are losing that election.
Banks Under Pressure, But Not Powerless
There’s no denying it—banks are in a tight spot. But they’re not out of the game.
Dr. Asiama stressed that Ghana’s digital rails—especially the GhIPSS Instant Pay (GIP) platform—offer a solid foundation for banks to rebuild digital relevance. The problem isn’t infrastructure. It’s strategy.
While mobile money thrives on peer-to-peer transfers and airtime purchases, banks could carve out new space through innovation in lending, savings automation, small business tools, and wealth management. But they have to move—fast.
In fact, some of the most future-ready banks are already experimenting with hybrid models and embedded finance.
One bank exec at the event put it plainly: “It’s not just about having a mobile app anymore. You need to be in the apps people already use.”
How the Central Bank is Steering the Conversation
The Bank of Ghana isn’t standing still, either.
It’s increasingly positioning itself as both a regulator and a facilitator of innovation. From issuing guidelines on fintech partnerships to supporting regulatory sandboxes, the BoG wants to see more collaboration—and less turf war.
During the forum, Dr. Asiama hinted that the central bank may tighten expectations for banks’ digital performance metrics in upcoming reviews. This isn’t about punishment. It’s a wake-up call.
To hammer the point home, he referenced how telcos were never expected to be financial leaders—and yet here they are. “If we don’t rethink what banking is, others will keep defining it for us.”
Here’s a quick snapshot from the BoG’s latest breakdown of digital transaction value:
| Platform | Transaction Volume (%) | Total Value (%) |
|---|---|---|
| Mobile Money | 97% | 72% |
| Traditional Banks | <1% | ~27% |
| Fintech Startups | 2% | 1% |
The volume gap is glaring. And the value isn’t far behind.
Looking Ahead: Can Banks Regain Their Edge?
Honestly? It’s hard to tell.
On one hand, banks have brand legacy, deep capital reserves, and regulatory credibility. That’s not nothing. On the other, they’re shackled by internal red tape, slow tech stacks, and a culture that still treats digital as an “add-on” instead of the main event.
But there’s still time—barely.
Fintechs and telcos haven’t cornered everything. Many are still limited to payments and basic transfers. If banks can bring creative thinking to products like digital lending, gig worker finance, and smarter savings tools, they can claw back ground.
