Bank of Ghana, (BoG) statutory regulator of the banking industry, last year introduced a biometric smart card, the e-zwich, onto the Ghanaian market. Kofi Ahovi takes a look at its achievements and challenges.
E-zwich is a major component of Bank of Ghana’s payment system programme and strategy. It is aimed at increasing electronic payments in the economy while reducing the over reliance on cash and paper-based payments.
This development is consistent with a general and growing international trend towards retail electronic payments which are considered more efficient, reliable, timely and catalytic for higher economic growth. Given the important role of payment systems as the core of any financial system, the case for e-zwich and other electronic payment products cannot be overemphasized.
To underscore its commitment to the promotion of electronic payments on a full time basis, BoG in 2007 established a wholly owned subsidiary, the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS). GhIPSS was charged with the responsibility of implementing and managing common electronic payment platforms that will enable all deposit taking financial institutions in the country to provide electronic banking and payment services to the banked, under-banked and unbanked throughout the country.
GhIPSS provides infrastructural services directly to the banks and other deposit taking financial institutions that, in turn, take care of the banking and payment needs of their customers. Currently, GhIPSS is implementing three electronic payment systems infrastructure projects, namely E-zwich, Cheque Codeline Clearing with cheque truncation and the Automated Clearing House.
The e-zwich system made reasonable progress in its first year of operations considering that it was a new technology and its adoption was subject to attitudinal and behavioural change from the general public.
Currently about 210,000 smart cards have been issued to people, including 2,841 merchant cards. All the 26 universal banks, apart from Access Bank, have e-zwich services available on average at 70% of their branches; seven out of the 14 Savings and Loans Companies are also implementing the e-zwich services.
Similar achievements have also been chalked with Community/Rural Banks and Post Offices across the country. 59 out of 146 community/rural banks have signed onto the system. Also 94 out of 171 major post offices in the country are successfully implementing the e-zwich.
The introduction of the e-zwich has made available a total of GH¢930,227.79 as total balance on all client cards.
Currently six banks, including Zenith Bank, The Trust Bank, UBA, CAL Bank, Merchant Bank and International Commercial Bank have enabled their customers to access cash from their traditional accounts electronically at any POS device (card2bank and bank2card).
Six other banks have completed the process but are yet to go live. Also, two more banks are in the process of configuring their systems.
Banking and payment services available at an e-zwich POS/ATM includes; Cash deposits/cash withdrawals, Salary and wage payments, Money transfers (card2card, card2bank, bank2card), Third party bill payments, ATM services (biometric), and Balance and other enquires.
With regard to the way forward for e-zwich, GhIPSS’ plan for the next 12 months is to work with the banks and financial institutions to consolidate and expand existing e-zwich services to the doorsteps of all Ghanaians and introduce new e-zwich products that will make e-zwich services more accessible.
The consolidation and expansion of existing e-zwich services will be achieved through the following; enrolment of senior high school and tertiary students by the banks and assisting their respective institutions to own Point of Sale (POS) devices and offer e-zwich services to students in a bid to encourage them to imbibe a savings habit.
Also payment of salaries, wages and pensions among others will be made through e-zwich for both public and private sector workers;
Promotion of the e-zwich card as a savings mobilization instrument especially for the under-banked and unbanked (balance on the savings wallet will earn interest at rates to be determined by each participating financial institution).
Furthermore, financial institutions will be encouraged to expand the number of e-zwich ATMs.
The introduction of new e-zwich products is planned as part of the e-zwich Project Phase III, these includes; mobile banking and payments offerings; card2person transfers; salary and wage advances; third party collections; and integration of other international payment platforms (such as Visa and MasterCard) with e-zwich at both system and terminal levels.
E-zwich is a major component of Bank of Ghana’s payment system programme and strategy. It is aimed at increasing electronic payments in the economy while reducing the over reliance on cash and paper-based payments.
This development is consistent with a general and growing international trend towards retail electronic payments which are considered more efficient, reliable, timely and catalytic for higher economic growth. Given the important role of payment systems as the core of any financial system, the case for e-zwich and other electronic payment products cannot be overemphasized.
To underscore its commitment to the promotion of electronic payments on a full time basis, BoG in 2007 established a wholly owned subsidiary, the Ghana Interbank Payment and Settlement Systems Limited (GhIPSS). GhIPSS was charged with the responsibility of implementing and managing common electronic payment platforms that will enable all deposit taking financial institutions in the country to provide electronic banking and payment services to the banked, under-banked and unbanked throughout the country.
GhIPSS provides infrastructural services directly to the banks and other deposit taking financial institutions that, in turn, take care of the banking and payment needs of their customers. Currently, GhIPSS is implementing three electronic payment systems infrastructure projects, namely E-zwich, Cheque Codeline Clearing with cheque truncation and the Automated Clearing House.
The e-zwich system made reasonable progress in its first year of operations considering that it was a new technology and its adoption was subject to attitudinal and behavioural change from the general public.
Currently about 210,000 smart cards have been issued to people, including 2,841 merchant cards. All the 26 universal banks, apart from Access Bank, have e-zwich services available on average at 70% of their branches; seven out of the 14 Savings and Loans Companies are also implementing the e-zwich services.
Similar achievements have also been chalked with Community/Rural Banks and Post Offices across the country. 59 out of 146 community/rural banks have signed onto the system. Also 94 out of 171 major post offices in the country are successfully implementing the e-zwich.
The introduction of the e-zwich has made available a total of GH¢930,227.79 as total balance on all client cards.
Currently six banks, including Zenith Bank, The Trust Bank, UBA, CAL Bank, Merchant Bank and International Commercial Bank have enabled their customers to access cash from their traditional accounts electronically at any POS device (card2bank and bank2card).
Six other banks have completed the process but are yet to go live. Also, two more banks are in the process of configuring their systems.
Banking and payment services available at an e-zwich POS/ATM includes; Cash deposits/cash withdrawals, Salary and wage payments, Money transfers (card2card, card2bank, bank2card), Third party bill payments, ATM services (biometric), and Balance and other enquires.
With regard to the way forward for e-zwich, GhIPSS’ plan for the next 12 months is to work with the banks and financial institutions to consolidate and expand existing e-zwich services to the doorsteps of all Ghanaians and introduce new e-zwich products that will make e-zwich services more accessible.
The consolidation and expansion of existing e-zwich services will be achieved through the following; enrolment of senior high school and tertiary students by the banks and assisting their respective institutions to own Point of Sale (POS) devices and offer e-zwich services to students in a bid to encourage them to imbibe a savings habit.
Also payment of salaries, wages and pensions among others will be made through e-zwich for both public and private sector workers;
Promotion of the e-zwich card as a savings mobilization instrument especially for the under-banked and unbanked (balance on the savings wallet will earn interest at rates to be determined by each participating financial institution).
Furthermore, financial institutions will be encouraged to expand the number of e-zwich ATMs.
The introduction of new e-zwich products is planned as part of the e-zwich Project Phase III, these includes; mobile banking and payments offerings; card2person transfers; salary and wage advances; third party collections; and integration of other international payment platforms (such as Visa and MasterCard) with e-zwich at both system and terminal levels.
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