Banks Should Intensify Education On E-Transactions

Mr Seth terkperMR. Seth Terkper, the Minister of Finance and Economic Planning, has urged stakeholders in the banking and financial sector, to intensify their education of customers on the essence of electronic transactions, as a means of achieving a cashless economy.

That, he said, would reduce the cost of doing business and enhance the smooth exchange of goods and services in the country.
Mr. Terkper stated this at a three-day workshop on National Payment System Strategy organised by the Bank of Ghana in collaboration with the Standard Chartered Bank in Accra, last Wednesday.

Electronic transaction is the practice where cheques and credit cards are used to pay for goods and services, instead of physical cash.
The workshop which was on the theme: Driving Efficiency and Value through Innovative Payment Solutions, was meant to provide an opportunity for industry players to discuss development of payment systems and challenges in the country and to offer possible solutions to them.

Mr. Terkper said the Ministry had advanced steps to hook payments to government institutions onto the electronic system, to eliminate waste and leakages.

Ghana, he said, must learn from Kenya, Tanzania and Uganda, where the system has proved efficient, culminating in the development of their economies.

Mr. Terkper said though the government has taken steps to mop up excess liquidity in the system, there is still much to be done.
He disclosed that currently the rate of currency circulation in Ghana is about 30 per cent while in Sweden and the USA, for instance, currency in circulation are about three per cent and seven per cent respectively.

The situation, he said, could be addressed if customers are given the needed education on the essence of patronising the electronic system of doing business.

Mr. Terkper commended the central bank for introducing systems such as Automated Teller Machines (ATM), Ezwich and mobile banking as a means of ensuring efficiency in financial transactions.

Dr Henry Kofi Wampah, the Governor of Bank of Ghana, said a lot has been achieved, since the introduction of the system in the year 2000.

He said though the e-transaction is an improvement in local and global business, it comes with its attendant challenges, indicating that “innovation, no matter how well intended, opens subscribers to new risks, including internet fraud and terrorism financing.”

The Chief Executive Officer of Standard Chartered Bank, Kwaku Badu-Addo, said technology has opened up new opportunities and skills for the people, adding that Stanchart  would be proud to send a team of experts to share their knowledge, expertise and experiences in payment systems at this very important national exercise which seeks to develop an integrated local, cross-border and multi-currency payment strategy for the country.
Malik Sullemana & Bilkis  Nuhu Kokroko

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