Vice President Dr. Mahamudu Bawumia emphasized that Africa requires two key elements to propel economic liberation across the continent.
He made these remarks while serving as the distinguished guest at the 3i Summit, a collaborative event hosted by the Bank of Ghana and various Central Banks in Africa. Dr. Bawumia highlighted the importance of Africa’s increasing adoption of technology as a crucial factor in driving the industrial revolution.
In an unprecedented fashion, Africa is fast embracing digital technologies, fostering the platform to adapt to the rapidly changing world in conformity with the Fourth Industrial Revolution.
Ghana has been on this track in a more deliberate manner during the past seven years, positioning us as the fastest mobile money market and the most financially inclusive economy on the continent.
The 3i Summit, centered on Innovation, investment, and Impact in the Fintech ecosystem in Africa, witnessed significant participation from prominent financial entities across the African continent.
The Vice President emphasized two crucial aspects for Africa’s financial inclusion agenda. Dr. Bawumia highlighted that the primary requirement for Africa’s financial sector is a digital identity for every citizen.
Additionally, he emphasized the importance of mobile money interoperability, enabling seamless movement of funds between banks and mobile money (MoMo) accounts with Telecommunication Companies (Telcos).
Dr. Bawumia emphasized that with the solid foundation of the two pillars, a conducive environment will be created for the implementation of a personalized credit scoring system.
We should move away from the traditional ways of doing credit scoring based on individual bank accounts since that has a limitation, because not everyone has a bank account. However, with MoMo accounts serving virtually as bank accounts, we can capture almost everybody and assign credit scores.
A properly functioning individualized credit scoring system with a working digital identity and address for all citizens will ultimately de-risk the financial ecosystem and bring down the cost of borrowing (interest rates).
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