Financial institutions in Ghana are becoming more efficient and boosting access to financial services with the launch of mobile money interoperability.
Recently, the Bank of Ghana (BoG) launched the country’s first Mobile Money Interoperability System. Mobile money users in Ghana are enabled to send and receive money to and from each other, regardless of the network they are on.
What interoperability means
Interoperability is when software, like mobile money applications, can exchange information and make use of it. With interoperability, individuals in Ghana who primarily use MTN Mobile Money can transaction with individuals who use Airtel Money as their preferred mobile money app.
Before interoperability, individuals could only send money to and receive money from each other if they were using the same mobile money app. The two individuals would have to use a third-party payment provider to facilitate the transaction. Interoperability is a step toward making transactions more affordable by eliminating the need to have a third-party payment provider.
Ghana’s interoperability approach
The interoperability initiative in Ghana aims to make it more convenient for individuals to open a bank account, to make financial transactions more affordable and to enable financial institutions to offer more services to their clients.
Ghana’s approach allows mobile users to move money from their mobile money accounts to bank accounts and vice versa. They can also move money from one mobile money platform to the other.
The interoperability project in Ghana includes bringing on board the e-zwich platform in the next two months. With this in place, e-zwich cardholders can go to any financial institution using the e-zwich platform to perform transactions. E-zwich removes the need for an individual to go to one specific bank where they have an account. Rather, e-zwich cardholders have more freedom to choose an institution and broader access to financial services throughout Ghana.
Third party integration
At Oradian, we work on building relationships with visionary financial institutions and assist seamless third-party integration.
- In countries such as Ghana, where mobile money has been widely adopted, we strategically select mobile money applications to integrate Oradian’s core banking system with. When an integration is complete, our system is updated – for all customers using the system around the world. Our customers remain ahead of their markets and can offer new services to their microfinance clients, without extra hassle or cost.
- We integrate with Key suppliers of Biometric Security, Account Management, Beneficiary Management, Digital Statements, Loyalty, CRM and Workflow solutions.
- We interface with credit bureau institutions. By creating a way to share lending history between credit bureaus and microfinance institutions, the institutions can make more informed lending decisions, especially when lending to SMEs. This improves the quality of the lending and minimises the risk of defaults. In Ghana, where several credit bureaus operate, selective integrations enable financial institutions to gather data about SMEs before approving SME loans, which gives the institution a competitive advantage.