Which would you tag to be convenient in making your daily transactions; the use of ATM cards, swipe utility cards, or the traditional carrying of cash in purses and wallets.
For the few who are left out this latest development, cashless transactions have become the thing for our generation. Convenience is currently the main goal for most banks. They create attractive products for their clients with convenience at the core. Because in the end clients would want to be able to take decisions and have the resources to execute such decisions immediately. Whether it's on a weekend or in a restaurant, you should be able to conduct your business with ease. That makes Mobile money the ideal vehicle for convenient and simple banking. Getting notified with each transaction you make, being able to check your balance, or make payments in your comfort are just a few benefits.
An even ideal advantage is the electronic record it provides, meaning no need for paperwork and your transaction can be traced and verified. Even the ATM and electronic card transactions are losing out to the mobile money services. And this gives banks much to worry about. The current maximum threshold for Mobile Money transactions is GHS 5000.
Despite this limitation, its flexibility appeals to both young and old, literate and non-literate. Tuition Fees are paid through this service at a number of tertiary and second cycle institutions in Ghana. Donations to support worthy causes as well as fund raising can be conducted with ease through the system as well. The possibilities are endless, yet it has its fair share of flaws.
The customer should feel assured that money sent to a third party has been received even without contacting the person. But this isn't the case. Mobile money agents are not required to show proof that the money has been delivered. So unless the customer makes contact with the recipient of the cash, he/she has to trust that the agent has performed the transaction. This raises issues about the honesty and integrity of the agents and is the cause of a number of misunderstandings.
Studies show 3 out of every 4 Ghanaians to be unbanked. The mobile money service could end up improving these records. A World Bank supervised consultative group in Ghana showed in a survey that the mobile money penetration in the financial sector was growing at an exponential rate with the number of active mobile money accounts reaching 4 million users as at July 2015.
The flexibility afforded by mobile money is ideal to most people. Charges are alarmingly high with the mobile money service, but it is estimated to drop as the industry becomes more competitive and stable. The challenges faced with this form of banking are high. Yet the benefits and potentials are
very huge. And it could revolutionize how business is conducted in the country and boost our
economy. Like the saying goes, a healthy economy is a wealthy economy.
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