Banking Is Necessary, But Banks Are Not: Ghana’s Digital Finance Disruption Story

The Branch That Lost Its Queue

In a quiet corner of Accra, not too long ago, a bank branch manager stood in her office puzzled. It was a Friday, just past noon, peak hour. But the hall was almost empty. She glanced at the security guard who simply shrugged and pointed to his phone. He had just renewed his ECG power, paid for his DSTV, and sent money to his sister in Kumasi: all in under 2 minutes, without stepping near a teller. That’s when it hit her. Banking had left the building.

Back in 1994, Bill Gates made a bold statement that many ignored:

“Banking is necessary, but banks are not.”

Three decades later, that idea has become Ghana’s financial reality. The services we once relied on banks for: payments, transfers, savings, and loans are now being offered by telcos, fintech startups, mobile apps, and even e-commerce platforms. And they’re doing it faster, cheaper, and in ways customers prefer.

Entered MTN Mobile Money, the game-changer. With over 18 million active users, MoMo brought banking to the palm of Ghanaians from Makola to Tamale. You didn’t need a bank account to move money, buy airtime, or even access microloans. All you needed was a SIM card/e-SIM and a PIN.

And then came other players: Vodafone Cash, AirtelTigo Money, and fintechs like Zeepay, Slydepay, and Hubtel, embedding payments into everyday life.

Banks were watching. Some reacted by launching apps. Others stuck to marble-floored branches and bulk email promotions.

Let me take you through a typical customer’s journey in 2025. Meet Afua, a 29-year-old boutique owner in Madina.

Afua receives customer payments via MTN Mobile Money (MoMo), which has become the primary means of conducting transactions for many small businesses in Ghana. Instead of handling cash or relying on traditional point-of-sale terminals, she simply shares her MoMo number or QR code with customers. Payments are credited instantly to her mobile wallet, giving her real-time access to funds and reducing the risks associated with cash handling. This system not only simplifies her day-to-day business operations but also builds a digital transaction history that can later support credit assessments or financial planning.

Afua pays her suppliers using QR codes, a growing method of cashless payment that has rapidly gained traction in Ghana’s business community. Instead of handling physical cash or initiating manual bank transfers, she simply scans the supplier’s QR code through her mobile wallet app. The funds are instantly transferred, and both parties receive digital confirmation of the transaction. This method reduces transaction time, eliminates counting errors, and fosters a more secure, efficient payment experience, especially important in a fast-paced retail environment where trust and speed are key.

Afua uses a digital lending app to finance stock for her boutique, a tool that has revolutionized credit access for small and medium enterprises across Ghana. Rather than going through the traditional hurdles of visiting a bank branch, presenting collateral, and waiting days or even weeks for approval, she simply applies through an app on her smartphone. Within minutes, she receives a loan offer tailored to her transaction history, repayment behaviour, and business type. This agile credit system enables her to stock up in anticipation of peak seasons, respond to supplier deals, and grow her business on her own terms. It’s a shift from exclusion to inclusion and a critical pillar of financial empowerment in the digital age.

Afua checks exchange rates on her phone before ordering fabric from Dubai, allowing her to make financially sound decisions in real time. This seemingly simple action helps her monitor fluctuations in currency values and decide when to purchase to get the most value for her money. For small businesses that import goods, even minor shifts in the exchange rate can significantly affect profit margins. Access to real-time financial information empowers entrepreneurs like Afua to time their purchases better, negotiate more effectively with suppliers, and maintain pricing stability for their customers.

Afua files her taxes via a Ghana Revenue Authority (GRA) portal that is integrated with her MoMo wallet, a convenience that has bridged the gap between digital finance and tax compliance. This integration allows her to remit taxes directly from her mobile wallet without visiting a tax office or filling out extensive paperwork. For many small and informal businesses, such systems are helping to bring financial activity into the formal economy, enabling better revenue tracking and compliance. It also reflects how digital infrastructure can support governance objectives, while reducing friction for entrepreneurs who previously found tax compliance burdensome or inaccessible.

News Flash: Afua hasn’t stepped into a bank in 14 months. Her entire financial life is digital, decentralized, and on-demand.

If your bank isn’t part of that journey, you’re not just missing out, you’re invisible.

The rise of embedded finance is making banking happen where life happens. From paying for a Bolt ride, to buying from a Facebook seller and shopping on Jumia. The transaction is no longer a destination. It’s a feature.

Platforms like ExpressPay, Paystack, and Flutterwave have empowered SMEs to accept payments like pros. Ride-hailing apps like Yango and ecommerce platforms now offer credit, rewards, and wallets. And the lines between tech and finance blur even further.

Some banks still lean on legacy or at least, that’s what most banks have. “We’re trusted.” “We have branches.” “We’re regulated.” Interestingly but quite necessarily, regulation is catching up. The Bank of Ghana has licensed over 40 fintechs. A Regulatory Sandbox is up and running. The Payment Systems and Services Act now governs more than just banks.

Trust is now built on user experience, not just vaults. Banks that do not evolve would not be chosen but would rather become background infrastructure needed.

This isn’t a funeral for banks. It’s a wake-up call.  Smart banks are not resisting change—they’re partnering with Telcos, fintechs and tech innovators to thrive in the digital age.

Banks like UBA Ghana are offering APIs, launching virtual cards, investing in digital lending, embedding services into client Enterprise Resource Planning (ERPs), and opening their infrastructure. Because in this new world, you don’t win by owning the rails.

You win by plugging in where your customers already are.

Practical Pathways exists for Banks in Ghana who are yet to transition into where customers already are.

Banks should transition their branches into experience centres rather than mere transaction halls. These spaces can provide digital literacy support and hybrid advisory services, enabling customers to understand and maximize digital tools while maintaining personal relationships through meaningful engagements.

Again, Banks could cautiously build and expose Application Programming Interface APIs to allow fintechs and third parties to integrate more seamlessly. Creating developer sandboxes further promotes innovation and collaboration across the financial ecosystem.

Banks should focus on use cases, not just products. Rather than pushing generic services, banks must design solutions around real customer moments such as school fees payments, international remittances, or daily trade operations.

Institutions must simplify customer onboarding, ensure fast and fair resolution of complaints, and communicate clearly in everyday language that customers can easily understand. Invest in digital trust is paramount now more than ever.

Traditional metrics like deposit growth should be complemented with customer effort scores and user drop-off rates in digital channels. This helps track how well the digital experience is performing and where to improve. Banks should measure what matters now.

The Future Isn’t Coming, it’s Here and it will not be determined by vaults or tellers. It will be shaped by who can deliver value where and when customers need it. To borrow Gates’ words:

Banking is necessary. But banks, as we’ve known them, are optional.

So, will your bank be a participant or a platform? Any bank that isn’t part of the journey is not just missing out—it is invisible.

In the end, those who adapt will lead. Those who resist will fade into the background; regulated, respected, but irrelevant!