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President
Kufuor launches landmark payment system
Accra, April 28, Ghanadot/GNA - President John Agyekum
Kufuor on Monday launched a landmark payment and settlement
system designed to transform and extend the coverage of
financial services and transactions in the country.
The "National Switch and Smartcard Payments System", dubbed
"E-Zwich", is an initiative of the Bank of Ghana (BOG) and
provides a common platform to link the payments of all the
financial and non-financial banking institutions.
The system, which is world class, can be readily accessed,
easy to use for savings, payments and transfers and the
management of various business transactions.
It is an integral part of the Government's overall vision of
making Ghana the gateway to the West African sub-Region, a
major financial hub, to become a significant player in the
global financial market.
Launching it, President Kufuor said it was time the nation
phased itself from the heavy dependency on cash and paper
transactions as it steadily progressed into the
middle-income status.
The technology, commonplace among emerging and developed
economies, he noted, would not only facilitate access to and
transfer of money but also remove the cumbersome and
insecure processes of using cash.
President Kufuor was unhappy that despite dramatic growth in
the banking sector engendered by reforms to develop and
modernize the financial services industry and the stability
in the macro-economic environment, there were many people
still outside the financial system.
An estimated 80 per cent of the eligible population "is
still either un-banked or under-banked, and seems to have no
access to financial services."
He said the "E-Zwich", safe, secure and efficient as it was,
should therefore help to change the situation by linking the
financial services industry with every aspect of the
nation's economy.
He drew attention to the need for small-scale and
medium-scale businesses and those involved in micro-credit
transactions to be encouraged to take advantage of the new
platform so as to be connected to the financial system and
benefit from the various services that the financial sector
offered.
President Kufuor further asked those responsible for payment
of salaries, wages, pensions and social support funds to
rely on the technology to bring transparency and integrity
to the payrolls.
"This card, which is safer and more convenient, should also
help to solve the problem of paying cocoa farmers with cash
or Akuafo cheque."
Mr Kwadwo Baah-Wiredu, Finance Minister, said the system
would allow for payments to be effected as quickly as
possible to Government's employees and pensioners.
The Governor of the BoG, Dr Paul Acquah, said the "E-Zwich",
was a safe and efficient payment infrastructure that would
establish a level playing field for all the institutions in
the financial services industry to compete.
He likened the operation of the system to that of the mobile
phone and said it could be used by anybody, anywhere to do
business.
President Kufuor had earlier inaugurated a new Inter-Bank
Payments and Settlements Systems Office at Ridge, Accra.
Central Bank Governor, Dr Paul Acquah said the Bank of Ghana
would soon introduce Automated Clearing House for bulk debit
and credit transfers as well as Code-line Cheque Truncation
Systems to further improve on the country's payment system.
He said existing payments system had been working smoothly
but needed to be further developed to the frontier of the
industry in terms of standards, to suit the needs of the
country's growing economy and to bring most economic
activities into the financial system.
The Bank has also issued a provisional licence for a credit
reference bureau to be established that would improve the
flow of information necessary for informed assessment and
pricing of risks, while protecting the confidentiality of
such information and credit worthiness of borrowers.
Dr Acquah lauded the legislative reforms that had made it
possible for a modern banking and financial services
industry, especially the Banking Amendment Act, the Payment
System Act, and the CSD Act, among other Laws.
According to him a safe and efficient payments system was a
key component of the economic and financial infrastructure.
Mr Joseph Nii Badu Tetteh, Acting President of the Ghana
Association of Bankers, said the banks would continue to
expand their frontiers through innovative products to ensure
the provision of adequate financial services to all.
GNA
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