NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, November 24, 2014

Financial and insurance activities are expanding at roughly twice the pace of the overall economy and just 30 per cent of the population are formally banked, so industry leaders have good reason to be optimistic about the country’s financial services future

As Ghana passes through a period of belt tightening, its banks have emerged with stronger balance sheets, positioning themselves to reach a growing retail and commercial customer base that is hungry for financial products. The country’s financial services sector continues to expand access to capital and innovative new products, with financial and insurance activities growing at roughly twice the pace of the overall economy, at 12.1 per cent in 2013. As such, industry leaders have good reason to be optimistic about the future of banking and finance in Ghana.

Like many countries in the region, a relatively small share of Ghanaians currently have access to a bank account at a formal financial institution – just 30 per cent according to the most recent figures. Traditional commercial bank branches, meanwhile, number just five for every 100,000 inhabitants in Ghana.