BoG to continue modernising supportive regulatory frameworks of digital banking – BoG Governor

Bank of Ghana says it will continue to make amendments in order to modernise the supportive regulatory frameworks of digital banking to enhance security and promote confidence and trust in the banking system.

The governor of BoG, Dr Ernest Addison, spoke at Standard Chartered Bank’s Digital Banking, Innovation and Fintech Festival, saying that it is important regulations made are kept abreast with the rapid changes in the ecosystem without impeding innovation in digital financial services.

He said the Bank of Ghana, in efforts to deal with this issue has adopted a regulatory and innovation sandbox approach.

Currently, the said sandbox is being used to live-test innovative digital financial service products, business models and supportive technologies in a controlled environment for a possible market rollout.

“As a nurturing arena, the Regulatory and Innovation Sandbox will ensure that the ecosystem remains relevant and resilient to better serve the changing needs of society in a sustainable manner”, Dr. Addison pointed out.

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He is noted to have said that “it is important to note that the burden of security awareness is not only on market players. Indeed, the emergence of new and digital financial solutions has introduced significant complexities in regulation and supervision as well. Therefore, discussions on creating an enabling environment for financial sector digitisation must also focus on regulatory technology (RegTech) and supervisory technology (SupTech).”

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Dr Addison said the manual supervisory tools currently in the system are ineffective in the supervision of digital financial services in the ecosystem due to its huge dependence on digital technology, high frequency and dense data, fast transactions and complex and evolving systems

Tackling the issues at hand, BoG has invested in SupTech tools to exercise effective oversight and supervision of digital financial services and reduce the burden of reporting on regulated entities, saying, an online reporting analytic surveillance system (ORASS) has been set up to facilitate submission and improve analysis of prudential and other regulatory returns.

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He said the new e-Cedi project presents a unique opportunity to design a technological representation of a fiat currency that will drive the financial sector digitisation further and also facilitate the government’s inclusive digital transformation programme.

Vice President Dr. Mahamud Bawumia, in a keynote speech applauded Standard Chartered Bank Ghana PLC for the innovative products since its establishment in Ghana and the role they play in expanding the country’s financial services sector.

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