Tuesday, January 30, 2018

Ghana AirtelTigo inject liquidity to expand mobile money operation



AirtelTigo, a telecommunication giant is in serious discussions with some banks and business people to inject liquidity into its mobile money operations to drive expansion and promote transformation in the financial inclusion agenda, Bright Owusu-Bempah, Chief Finance Officer, has said. 

Industry operators have raised concerns that solving the liquidity management challenge is one of the next big issues facing mobile money providers around the world. 

 “With mobile money, we are talking to some new banks and financial institutions, we are also talking to businessmen, and people who are interested in driving the whole agenda of financial inclusion, to ease liquidity strain on our agents and customers.

At the moment we are putting finishing touches on some of the discussions. There is going to be huge transformation gap in our mobile money operations, where we hope that within reasonable ranges you will be able to have access to agents who will always get you your transaction processed,” Mr. Owusu-Bempah told Network of Communication Reporters (NCR) at a media interaction during a courtesy call on the management of the company in Accra. 

According to data from the Bank of Ghana from January to December 2017,   AirtelTigo recorded an amount of GH¢79 million accounting for 3.56 percent share of the mobile money deposits in the country. 

Mr. Owusu-Bempah explained that the company’s strategy is to leverage on the opportunity to effect fresh changes and that is what we are working on in the next couple of weeks. “What we are trying to do is to increase volumes and also support the Agents with liquidity. With our target it should be able to get to where we want to be.”

The Chief Executive Officer of AirtelTigo, Ms Roshi Motman assured that with the wider range of customers, after the merger, the company’s plans is to drive accessibility and liquidity to position the company as a viable entity in the mobile money value chain.  

“Another key piece of our strategy is going to be mobile money. Tigo Cash has a bunch of customers; Airtel Money has its customers and now we want to expand that footprint quite dramatically.”

“There are two things that are important from the customer perspective when it comes to mobile money, which is the accessibility, and agents having the liquidity to give out the money. We are going to be on top of our game so the business can thrive,” she said.   

She said that the merged entity has an extensive distribution network and it would focus on making things simpler, easier and better for customers.

“Our Mobile Financial Services will also be greatly enhanced with combined agent networks and platforms,”she said.
      
Ghana's Mobile money and accounts
According to data from the Bank of Ghana  amount of money mobilized outside the banking system through mobile money recorded GH¢2.3 billion ending December 2017,representing a growth of 84.6 percent over the December 2016 figure of GH¢1.3 billion. 

These funds mobilized through mobile money transactions are currently held by banks.

The data also showed that mobile money accounts reached 23.95million compared with 11.43million bank accounts as at end December 2017. Value of mobile money transactions was GH¢155.8 billion at end December 2017 showing a growth of 98.5 percent over December end position of GH¢78.5 billion in December 2016.

MTN came on top as having the largest share of deposits, accounting for more than 90 percent of mobile money accounts held at commercial banks. MTN as at October 2017 had GH¢2.1 billion representing 93.5 percent of deposits held at commercial banks.

Airtel/Tigo followed with GH¢79 million accounting for 3.56 percent share of the deposits. Vodafone had 2.52 percent of the market share with GH¢57 million deposits.

For some, the amount held by MTN makes a strong case for MTN in its quest to establish a “Digital Bank” soon in Ghana subject to securing the required regulatory approval.

Banks holding the accounts

Fidelity Bank led the pack in terms of the banks holding the largest share of mobile money deposits with GH¢583 million. ECOBANK had GH¢470 million, while CAL Bank held GH¢229m.

These were the top three banks out of the 19 banks captured in the Bank of Ghana data holding the mobile money deposits as at October 2017.

Direct jobs created by mobile money through engagement of mobile money agents was 194,688 in December 2017 compared with 136,769 in December 2016.

Analysts have argued that the Payment Systems and Services Bill, when passed this year, is expected to provide additional support for the deepening of the payment landscape by creating job opportunities for the youth, facilitating international inward transfers, providing convenience and choice for consumers.

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