The Absa Group Limited, formally Barclays Africa Group Limited is confident the passage of the Payment Systems and Services Bill into Law will urge banks to grow in the country.
The Payment Systems and Services Bill which was passed into law is expected to promote innovation in the design of new secure electronic money products and payment services, and also engender competition in the electronic money business.
In an interview with Citi Business News on the impact of the passage of the Bill into Law on Barclays Ghana’s operations, Absa Regional Operations Chief Executive, Peter Matlare said they are confident of takking advantage of the law.
“If you look at the way in which we are rolling out our separation program we are quite comfortable that either on our own or with partners we will be able to compete in all of our markets. So if I look at some of our other markets we’ve already partnered Fintechs in order to deliver particular products to our customers. Ghana is no different for us. We see ourselves being able to compete in all our markets.”
For the group CEO of Absa Africa René van Wyk, he believes the new Financial Technology Companies (FINTECHS) which will grow as a result of the passage of the Payment Systems and Services Bill into Law, will not be able to compete with the Absa group based on their strength on the African continent.
“Let’s not forget that we can offer what they can’t offer. We have an African balance sheet and presence. We have the footprint that will enable the kind of business they’ve got. So while we will compete head-on in certain market segments, they can’t compete with us in the biggest space.”
Speaking on the impact of the new law, the Head of Payment Systems at the Bank of Ghana (BoG), Dr Settor Amediku stated that its passage should not just aid in promoting financial inclusion, but would compel banks to be innovative.
“It’s going to introduce a lot of competition in the sense that non-banks are going to be licensed by the Bank of Ghana to provide payment services like the Banks. So Banks that are not ready to innovate are going to find it difficult to mobilize data and increase their income” he said.
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Source: citibusinessnews.com
