Ghana Nears First Non-Interest Banking Licence as BoG Warns on Fintech Trust

Ghana could issue its first non-interest banking licence this year as the central bank warns that weak trust, cyber threats and regulatory gaps could undermine Africa’s rapidly expanding fintech sector.

ACCRA, Ghana — Bank of Ghana Governor Dr Johnson Pandit Asiama has warned that Africa’s rapidly expanding fintech sector risks losing public confidence unless regulators, financial institutions and technology firms strengthen trust, cybersecurity and governance standards alongside digital innovation.

Speaking at the ACI World Congress in Accra, Dr Asiama said digital payment growth alone would not guarantee sustainable financial transformation without credible institutions, transparent regulation and stronger protections against cyber threats and financial crime.

“Trust is the most valuable and indispensable currency in the digital finance era,” he said.

His remarks come as African economies accelerate mobile money adoption, digital banking integration and cashless payment reforms amid rising concerns over cyber fraud, data protection and financial system resilience.

According to the GSMA’s State of the Industry Report on Mobile Money 2024, Sub-Saharan Africa remains the world’s largest mobile money market, accounting for more than $1.1 trillion in annual transaction value and over half of all registered mobile money accounts globally.

In Ghana, mobile money transactions reached GH¢1.9 trillion in 2023, according to data from the Bank of Ghana, underlining the growing centrality of digital payments to the country’s economy and financial inclusion agenda.

The World Bank has identified digital finance expansion as a major driver of financial inclusion in Ghana, particularly among underserved and previously unbanked populations, where access to conventional banking services remains limited.

Dr Asiama said cybersecurity had become one of the most urgent dimensions of financial sector stability, warning that financial systems were only as secure as their weakest institutions.

He disclosed that Ghana was developing a shared financial sector cybersecurity framework that would allow regulators to monitor industry-wide cyber exposure in real time and respond more rapidly to systemic vulnerabilities.

Cybersecurity analysts have repeatedly warned that the rapid expansion of fintech services across Africa has increased exposure to fraud, identity theft, ransomware attacks and digital financial crime, particularly where regulatory capacity struggles to keep pace with technological innovation.

The Governor also called for stronger coordination among African regulators, investors and financial market participants to improve trust, deepen financial integration and support long-term growth across the continent’s digital economy.

He said Africa’s financial transformation should ultimately be measured not by the sophistication of its platforms or the speed of its payment systems, but by the confidence consumers, businesses and investors place in the institutions behind them.

“The level of trust must be earned through consistent conduct, transparent governance, and institutions that deliver on their promises,” Dr Asiama said.

Ghana moves toward first non-interest banking institution

The Bank of Ghana is, meanwhile, preparing to issue the country’s first non-interest banking licence, a move analysts say could diversify Ghana’s banking sector, widen financial inclusion and attract new pools of ethical and faith-based investment capital.

Dr Asiama said one indigenous bank had formally applied for a non-interest banking licence, while four other financial institutions were preparing submissions to the central bank.

Speaking after the 130th Monetary Policy Committee meeting in Accra, he said the regulatory and supervisory framework for non-interest banking had reached an advanced stage following the publication of operational guidelines earlier this year.

“A lot has been done. Hopefully this year, we’ll see the first licence,” he said.

Non-interest banking operates on profit-and-loss sharing principles rather than conventional interest-based lending structures and has expanded across parts of Africa, the Middle East and Asia as governments seek to improve access to alternative financing systems.

Several African countries, including Nigeria and Sudan, already operate regulated non-interest banking systems. Supporters argue that the model can improve access to finance for underserved communities while attracting investment linked to Islamic finance and ethical banking markets.

According to the Islamic Financial Services Board, the global Islamic finance industry exceeded $4 trillion in assets in 2024, driven largely by growth in banking, sukuk bonds and Sharia-compliant investment products.

Professor John Gatsi, Head of the Banking Supervision Division at the Bank of Ghana, said the framework had been designed to align with international regulatory standards while safeguarding transparency, consumer confidence and financial stability.

He said non-interest banking could provide small and medium-sized enterprises with alternative funding options outside conventional banking structures, particularly for businesses that struggle to access traditional lending.

“This will give individuals and businesses an alternative to conventional banking services without compromising on regulatory standards,” Professor Gatsi said.

Peer-reviewed research using World Bank Global Findex data has shown that mobile money adoption in Ghana is linked to increased use of formal savings, credit, and banking services, reinforcing the role of fintech in broadening financial inclusion.

However, economists caution that the long-term success of non-interest banking in Ghana will depend on regulatory enforcement, liquidity management, consumer understanding and sustained public confidence in governance standards.

Analysts also warn that limited public awareness, operational complexity and misconceptions surrounding Islamic finance models could slow adoption during the sector’s early stages.

If approved, the launch would be one of the biggest changes to Ghana’s banking system in recent years, putting the country among a growing number of African economies that are expanding regulated non-interest financial services as policymakers try to balance innovation, financial inclusion, and systemic stability.