Digital identity and mobile money interoperability are key to financial inclusion in Africa- Vice President Bawumia

Digital identity and mobile money interoperability are key to financial inclusion in Africa- Vice President Bawumia

The Vice President of the Republic of Ghana and Flagbearer of the New Patriotic Party (NPP), H.E. Alhaji Dr. Mahamudu Bawumia, has joined the Bank of Ghana and Central Banks in Africa for the 3i Africa Summit 2024, in Accra on May 14, 2024.

He noted that Ghana has taken a more intentional approach to this during the last seven years, establishing itself as the continent’s quickest mobile money market and the most financially inclusive. Adding that, “…two things are critical for Africa’s financial inclusion agenda. First is the need for a digital identity for all citizens and, second, a mobile money interoperability allowing banks and mobile money (Momo) accounts with Telcos to move funds freely back to back.”

Dr. Bawumia further added that the establishment of these pillars will create a favourable platform for individual credit scoring system, and has urged Africa to move from the traditional system of credit scoring which is based on individual bank accounts, as it has a lot of limitations. “However, with Momo accounts serving virtually as bank accounts, we can capture almost everybody and assign credit scores”, he added.

He has therefore called on Central Banks in Africa to adopt a properly functioning individualized credit scoring system with a working digital identity and address for all citizens to de-risk the financial ecosystem and reduce the cost of borrowing (interest rates).

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