The banking sector has been one of the most industrious sectors since industrialization. Over the past years, individuals and businesses have relied on the banking sector so far as Cashflow is concerned and transactions but this time, we cannot overlook fintech anymore.
There are substantial implications for the changes in the Ghanaian banking sector for the economy over the years. First of all, the introduction of foreign banks, especially from neighboring countries, has led to intense competition in Ghana’s banking industry, concerning the size of deposits and the size of the market share of the various banks.
It is, however, important to recognize that the level of competition in the Ghanaian banking sector has a causal effect on the level of efficiency and we have seen some appreciable level of improvement in service delivery and efficiency across the various banks in the country. Again, the competition in the banking industry has also led to technological innovations with the introduction of automated teller machines (ATMs), E-Banking, and SMS Banking, etc. But with all these individuals and other firms tend to have issues with it. There has been an improvement but are these improvements solving human problems? Yeah, they may be but the Fintech Companies are gradually penetrating the market with ease.
Focusing on fintech
Fintech has also changed the game for developing emerging nations. Now, anyone from another country whether a third(3) world country or developing country can sit comfortably and open a foreign account. By providing the requirements it’s so much easier and faster to get an offshore account.
These days more people seek convenient and flexible ways of using financial services. Especially the low-income population search for accessible ways of accessing their banks and making transactions. “Technology is playing an important role and as time goes on the fintech companies are taking over the traditional ways of banking. ” It is important to reflect, together with the digital services industry, the fintech and the business firms that corporate together in the financial sector.
What is fintech?
Fintech refers to the integration of technology into offerings by financial services companies in order to improve their use and delivery to consumers