The Recent Evolution of Ghana's Financial System: The "MOMO" Effect

Abstract

This study analyses how the widely use of telephone and similar electronic gadgets has reshaped transactions and the payment system in Ghana. The not very long ago introduced mobile money system widely known in the country as MoMo,  tends to have astounding effects on the banking sector that has been in existence since time immemorial. This research focuses on the impact the mobile money industry has had on the lives of the average citizen and also on communities where banks are inaccessible in relation to banking and financial inclusion in general. Data from the Bank of Ghana, World Remit, survey on social media platforms and other sources show that the mobile money sub industry of the FinTech industry has made and achieved significant performancesand milestones within the past decade or so. The numbers infer that patrons tend to rely more upon the newly born mobile money system and continue to show reluctance in patronising the orthodox system of banking. We look at the changes in the amount of banking transactions as well as mobile money transactions within specific periods. From statistical data and individual opinions accumulated it is clearly a wake up call for banks. Based on data evidence the possible reasons which might have been the causes of the situation at hand are as well discussed and recommend possible solutions are arrived at.