BoG Backs Innovation-Led Regulation to Drive Ghana’s Digital Finance Growth

The Bank of Ghana (BoG) has reaffirmed its commitment to a regulatory framework that nurtures innovation while preserving financial stability, arguing that effective regulation should enable technological progress rather than constrain it.

Speaking at the Ecobank–JoyNews Business Financial Dialogue in Accra on Tuesday, Hayford Kumah, Head of the DEMI & PSP Office at the BoG’s FinTech and Innovation Department, said the central bank is adopting a balanced, risk-based approach that encourages financial innovation without compromising consumer protection or systemic resilience.

“Our regulatory framework is based on what we call a balanced and proportionate risk framework,” Mr Kumah said. “We are trying to bring on board as much innovation as possible while also ensuring that this is safe and sound.”

The remarks highlight the central bank’s strategy of positioning regulation as an enabler of Ghana’s expanding fintech ecosystem, where digital payments, mobile money and emerging financial technologies are reshaping access to financial services.

Mr Kumah argued that regulation and innovation should operate as complementary forces, with policy frameworks designed to safeguard users while creating space for new products and business models to flourish.

“Innovation and regulation should not be in tension,” he said. “Rather, regulation should help safeguard innovation in a manner that protects the informal sector worker, the less educated person, and everyone using digital financial services.”

The BoG official noted that Ghana has largely addressed the challenge of financial access and must now focus on increasing the effective use of financial services. He cited the Ministry of Finance’s National Financial Inclusion Development Strategy, which estimates financial inclusion at about 96%, while acknowledging the World Bank’s lower estimate of 81.4%, reflecting differences in methodology.

“By and large, in terms of access, we have done well. The challenge now is usage,” he said.

According to Mr Kumah, many mobile money users continue to use digital wallets primarily for cash deposits and withdrawals, limiting the broader economic benefits that could come from greater uptake of savings, insurance, pension and other digital financial products.

He said expanding the use of these services—particularly among workers in the informal sector—would deepen financial inclusion, strengthen household resilience and support broader economic development.

Mr Kumah also identified fraud and cybersecurity concerns as key obstacles to greater adoption of digital financial services, stressing that stronger consumer protection measures and sustained financial literacy campaigns will be essential to building public confidence in Ghana’s digital finance ecosystem.

The comments underscore the Bank of Ghana’s broader policy direction of promoting responsible innovation while ensuring that regulatory safeguards keep pace with the country’s rapidly evolving digital economy.