By Gbenga Okejimi, Country Manager, Ghana and Nigeria
In emerging markets all across the globe, marginalized groups face limited access to both financial services and financial literacy. As a result of the financial exclusion, many developing countries face extreme poverty rates which leads to instability and hinders sustainable economic growth.
Improved access to digital payments is crucial in emerging markets as it ensures formal services are more affordable, accessible and readily available, which helps alleviate poverty and income inequality.
In Ghana, financial inclusion has not been fully realized as many households, micro, small and medium enterprises (MSMEs) still deal in cash and are susceptible to irregular cash flow and burglary.3According to a Global Financial Database published by the World Bank, about 7 million Ghanaians are outside the financial inclusion bracket, limiting their access to a more inclusive and sustained system.
WorldRemit, the global digital payments company, has maintained its commitment to promoting financial inclusion in emerging markets. The company’s presence in Ghana provides customers with instant and safer money solutions through strategic partnerships with financial institutions.
As a result, formerly excluded Ghanaians are moving from exclusively cash-based transactions to formal financial services such as using mobile phones and other digital technology to access these services.
Thanks to the rise of digitization in Ghana, there has been an increase in the use of mobile money services which includes mobile banking, mobile finance and mobile payments. The digitized monetary technology has enabled the unbanked population to have access to financial services facilitating a cashless economy. According to the World Bank, it is estimated that mobile money use in Ghana is the fastest growing digital market in Africa inferring from its simplicity, swiftness and convenience.
The services offered by WorldRemit have allowed Ghanaian households to send and receive money from across the globe within minutes through bank transfers, mobile money, and cash pick-ups.
It has further helped digitize remittance services to be 100% digital (cashless), increasing convenience and enhancing security. As of June 2022, remittances sent back to Ghana by migrants were more than £145M GBP.7
Additionally, through forming partnerships with financial institutions, WorldRemit is improving financial inclusiveness. WorldRemit continues to expand into worldwide remittance markets, improving financial inclusiveness of families who through increased access to funds, they can invest in their businesses, health and education.