Chief Enterprises Business Officer at MTN Ghana,Angela Mensah-Poku, emphasized the importance of prioritizing financial and digital literacy within the financial inclusion ecosystem to foster industry growth.
Addressing stakeholders at MTN’s Business Executive Breakfast Series on the theme “Bridging the Credit Risk Gap for SMEs in Ghana,” Mensah-Poku stressed that while technology and innovation are essential drivers, financial and digital literacy serve as fundamental pillars.
She underscored that without adequate education in these areas, achieving financial wealth and bridging the financial inclusion gap remains a challenge.
“Financial Inclusion, technology is nothing when there is no education on financial and digital literacy. We will never be able to attain financial wealth,” she said.
Mensah-Poku called for consistent collaboration within the industry, leveraging technology to enhance transaction visibility, facilitate lending to suppliers, and create an inclusive ecosystem beneficial to all participants.
CEO of Mobile Money Limited, Shaibu Haruna, highlighted SMEs as pivotal to Ghana’s economy, noting MTN’s commitment to leveraging technology to assess credit risks and predict customer repayment capabilities.
He emphasized the success of microloan products based on customer transaction data and expressed optimism about tailored product offerings for SMEs.
“We are using our customer transaction data to predict their ability to pay and risks around default. The success story we have seen with our micro loan products is going to influence how we shape products for the future, and we are excited by the prospects of introducing products that address the specific needs of SMEs in Ghana.
“We can profile them for the levels of credit that we want to provide them in partnership with the banks or financial service providers and educate our customers constantly about the risks of financial transactions which are centered around social engineering,” he added.
Haruna further explained how digital footprints from merchant and agent transactions inform customer profiles, enabling strategic credit partnerships with banks and financial service providers. He stressed the importance of continuous customer education on transaction risks, particularly related to social engineering.
Kwame Anim-Somuah, CEO of A. S. Farms and a Poultry Farmer, shared insights into the unique credit needs of agricultural businesses. He highlighted technology’s role in showcasing these needs to financial institutions and advocated for tailored credit scoring methodologies that reflect the specificities of the agriculture sector.
Anim-Somuah emphasized the prolonged return cycles in agriculture compared to other industries and called for interest rates structured according to individual performance rather than generic scores.
In conclusion, the discussions underscored the critical role of financial and digital literacy in empowering SMEs, leveraging technology for credit assessment, and tailoring financial products to meet sector-specific needs, particularly in agriculture.