The Executive Secretary of the Ghana Microfinance Institutions Network (GHAMFIN), Yaw Gyamfi, has urged Non-Bank Financial Institutions (NBFIs) to harness the progress achieved in the sector to enhance financial inclusion. In the aftermath of a banking sector crisis that eroded public trust, the microfinance industry has strived to rebuild its reputation and regain confidence. Gyamfi stressed that microfinance has been a key contributor to financial inclusion, evolving with technological advancements. He emphasized the importance of sustaining inclusion efforts and called for proactive measures by industry players and stakeholders to promote inclusivity through innovative approaches.
Promoting Financial Inclusion Through Innovation and Technology
Gyamfi made these remarks at the 2nd Non-Bank Financial Institutions Awards & Dinner Night held in Accra. The event, organized by GHAMFIN in partnership with the Financial Inclusion Advocacy Centre, celebrated the accomplishments of NBFIs in their intermediation roles. Operating under the theme “Sustaining the Gains of Inclusive Finance through Innovation and Technology,” the event aimed to encourage excellence in the sector while motivating weaker institutions to enhance their sustainability. Gyamfi highlighted the significance of collaboration, sharing best practices, elevating standards, and supporting institutions dedicated to improving their client offerings.
Addressing Challenges of Unlicensed Entities
One concern raised during Gyamfi’s address was the proliferation of unlicensed entities offering loans through mobile applications in Ghana. These unregulated foreign entrants pose heightened competition to the microfinance sector and jeopardize its sustainability while undermining financial inclusion efforts. Although the central bank has taken actions against these entities, Gyamfi emphasized the importance of citizens exercising caution and not hastily engaging with unfamiliar, potentially fraudulent operators.
Advocating for Financial Literacy and Security
Gyamfi also called upon financial institutions to intensify financial education efforts to protect customers against financial scams. He encouraged institutions to conduct financial literacy programs, ensuring that people are well-informed before engaging with potentially illegal operators. Highlighting the origins of these online institutions, Gyamfi questioned how entities based in distant locations like Mexico could operate within Ghana, emphasizing the need for vigilance among citizens.
Recognition for Excellence in the Industry
The event recognized and awarded various institutions for their contributions to the sector. Categories included awards for gender-focused microfinance institutions, contributions to financial literacy, innovation, methodology, outreach in rural areas, promotion of financial inclusion, corporate governance, disability product offerings, and sustainable agriculture financing. This acknowledgment aimed to motivate institutions to continue their efforts in promoting financial inclusion and excellence in the microfinance sector.