Tuesday, October 7, 2014

GHANAIAN MFIs AND TECHNOLOGY ADOPTION




The West Africa Microfinance industry is way behind innovate technology. Technology in the Ghanaian microfinance is limited to the use of the MFIs. Client have limited means to interact to their MFIs through the use of technology app.
The telecoms are trying hard to improve the use of the mobile money. The challenge here is that clients would still have to liquidate their e-cash to “real” cash before usage. This is not like the case in Kenya, Uganda and others where you can still transact with your “e cash”.  In this case there is much motivation to be on that platform.
Another challenge with mobile money platform in Ghana is the reliability of the mobile payment systems. I have for the past months not being able to use my e-cash to pay simple bills. I have complained to the service provider and till date that issue have not been solved.
In Ghana for example cash reload or transfer can largely be done from one network to the other and not across the networks. This is much of an inconvenience to clients because one would have to locate an agent for a specific provider before you can load or download your cash. The search for an agent can take you forever.
The way to improve innovation within the microfinance sector in Ghana is through partnerships and linkages. From my observations MFIs in Ghana are typical of Ghanaian businesses where everyone think they can succeed by operating as standalone entities. The challenges and opportunities in the microfinance business is so huge that no one MFI can harness the opportunity alone or will be able to conquer the challenges alone. There is the need to break up this “island business attitude” and seek for positive innovation and partnerships to help transform the entire microfinance industry. This is the only way to further improve on the relevance of microfinance services to clients as well as towards national development.

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