Rejoinder: Banking is necessary – but banks are not: Why the digital age strengthens, not weakens, the role of banks in Ghana

From Accra to Takoradi, Tamale, Kumasi and countless communities across Ghana, the way people interact with money has been transformed in just a decade.

Today, with nothing more than a phone in hand, Ghanaians pay their electricity bills, send money to loved ones, purchase goods, and even access credit; all without stepping into a physical bank branch. This is the era of instant payments, QR codes, mobile wallets, and fintech-driven solutions.

Against this backdrop, a recent article on page 28 of the July 28, 2025 edition of the Business and Financial Times reignited a familiar debate. Drawing on a 1994 remark by Bill Gates, the article asserted: “Banking is necessary, but banks are not.” The argument suggests that the rise of digital platforms has made banks less relevant; perhaps even optional, in modern economies.

The statement is striking, but it risks distorting the very heart of Ghana’s financial evolution. Technology has changed how banking is done, but it has not made banks less essential. In fact, the opposite is true.

From the perspective of the Ghana Association of Banks (GAB), the evidence is clear: banking is necessary, so are banks; now more than ever.

The Changing Landscape: Acknowledge and Celebrate Progress

Consider the story of a young clothing boutique owner in Accra, running her entire business from her mobile phone. For more than a year, she has paid suppliers, received customer payments, applied for short-term credit, and even filed her taxes – all without visiting a bank branch. To some, this might seem like a threat to traditional banking. In reality, it is a triumph: a powerful symbol of how far Ghana’s banking industry has come in promoting inclusion and convenience for the banking population.

There is no doubt that the rise of telcos, fintech, and mobile payment solutions has been transformative. These innovations have broken down barriers, extended services to people who were once excluded, and made everyday transactions faster and more accessible. From QR code payments in market stalls to mobile-based loans that empower small businesses, technology has dramatically reimagined the way Ghanaians interact with financial services.

But here lies an important truth often overlooked in the argument that “banks are no longer necessary”: all of these capabilities rest on the rails laid down by the banking industry itself. The infrastructure, stability, and trust that make digital finance possible are built on decades of work by banks – a foundation without which these new solutions could not exist.

Banks Are Not Watching from the Sidelines – They Are Building the Future

The notion that banks are nothing more than marble-floored institutions struggling to catch up with the digital age is no longer true. In fact, the story of Ghana’s digital finance transformation cannot be told without placing banks at its centre. Far from being passive observers, banks have been the main architects and financiers of the very infrastructure on which today’s digital ecosystem runs.

Take, for instance, the leading role that banks played in the set-up and rollout of the Ghana Interbank Payment and Settlement Systems (GhIPSS). This platform, built and supported by Bank of Ghana with extensive collaboration with banks, is the backbone of instant money transfers, QR code payments, and full interoperability between banks, fintechs, and mobile wallets. Every seamless transfer made by a customer on a mobile phone rides on this invisible yet powerful banking infrastructure.

Similarly, the recent wave of fintech innovation has been fuelled by the deliberate decision of many banks to open their systems through Application Programming Interfaces (APIs). These secure gateways allow fintechs to connect to banks in a regulated environment, ensuring that the solutions built are fast, safe, and scalable. What looks like a new fintech breakthrough to the customer is, more often than not, a joint innovation between a nimble startup and the underlying systems of a bank.

Banks have also pioneered the data-driven credit models that have made mobile-based lending possible. The credit-scoring tools and risk assessment frameworks that determine who qualifies for a loan in minutes are built on decades of banking expertise in understanding customer behaviour, managing risk, and ensuring responsible lending. Suffice it to say, the micro-borrower gets access to credit on his/her phone because there is a bank that commits to fully underwrite the exposure and bears the risks associated with the lending.

Just as important is the role banks play in cybersecurity and regulatory compliance. In a world where fraud and cyber risks are growing, it is the banks that hold the ultimate responsibility for financial stability. They invest heavily in monitoring systems, compliance structures, and security protocols so that the entire ecosystem – including telcos, fintechs, and digital platforms – can operate without fear of systemic failure.

Put simply, if fintechs and mobile operators are the sprinters in this new financial race, it is the banks that built the track. Without their rails, resources, and risk management, the entire digital financial experience as we know it would not exist.

The Evolution of Banks: From Branches to Experiences

The role of the traditional bank branch is undergoing a profound transformation. No longer are these spaces simply venues for deposits and withdrawals; they are increasingly becoming experience centres where customers can receive expert advice, access personalized financial solutions, and complete digital onboarding with ease. This reimagining of the physical branch is complemented by significant investments in digital service delivery.

Today, Ghanaian banks are rolling out mobile and internet banking applications that match, and in some cases surpass, the speed and intuitive design of fintech platforms. Virtual cards and contactless payment options are now standard, making transactions more seamless and secure. Processes that once required days – such as loan approvals – are now being completed in real time, sometimes in a matter of minutes. Banks are also integrating chatbots and artificial intelligence tools into their customer service models, ensuring that clients can access support and guidance anytime, anywhere.

These innovations underscore an important truth: banks are not resisting technology – they are embracing it. By combining digital efficiency with human expertise, banks are redefining their role in the lives of customers and aligning themselves with the expectations of a fast-moving, digitally connected world. Banks have embraced the new order with open arms; technology is no longer seen by banks as enabler of banking operations, it is deployed as the business of banking.

GhanaPay: A Platform for Everyone

One of the clearest demonstrations of bank-led innovation in Ghana today is the development of GhanaPay, an industry platform championed by the Ghana Association of Banks.

GhanaPay has been conceived as a single, platform agnostic, interoperable solution that unifies payments across all banks and links seamlessly with mobile money wallets. This platform was designed with the future of finance in mind, placing the customer – whether an individual, a small business, or a large corporate – at the centre of every transaction.

Through GhanaPay, customers can make seamless payments and collections, not just between bank accounts, but across mobile money systems as well. The platform also has avenues for the integration of a wide range of services, from bill payments and merchant services to savings, credit, and even investment options. It is secure, inclusive, and a nationwide digital ecosystem built on the trust and efficiency that banks have always stood for.

It represents an industry-wide commitment to a future where financial services are not fragmented, but unified, bank-led, collaborative, and accessible to every Ghanaian – home or abroad.

Without Banks, There Is No “Banking”

The phrase, “banking is necessary, but banks are not,” is undeniably catchy. Yet, when examined closely, it fails to stand up to the realities of how modern finance actually works.

Even the most advanced fintech platform or mobile wallet ultimately depends on the very institutions it is said to replace. Every cedi in a mobile wallet must be held in a bank account somewhere. Every payment, no matter how seamless, must be cleared and settled through a bank-operated system. The liquidity that ensures funds can move instantly from one customer to another, or across platforms, is managed and guaranteed by banks. And all of this activity takes place within a regulatory and supervisory framework that banks have helped to design, uphold, and secure.

If banks were to disappear tomorrow, the digital economy would not simply slow down; it would grind to a halt. Payments would fail, confidence would collapse, and the platforms that seem independent today would be left without the infrastructure, trust, and stability they depend on.

Far from being made obsolete by technology, banks have become more indispensable than ever as the financial ecosystem grows more complex. They remain the custodians of stability, the engines of liquidity, and the guarantors of systemic trust. Technology may have changed the form of banking, but it has only deepened the relevance of banks, whose operations have completely metamorphosed into digital banking via the use of banking apps, and digital platforms that enables swift transactions and provide banking to the underserved.

The Real Relationship: Partners, Not Competitors

A common misconception about the modern financial services industry is that banks, fintechs, and telcos are locked in fierce competition, battling to win over the same customers. The reality, however, is far more collaborative. Partnership, not rivalry, defines today’s financial sector.

Increasingly, banks are choosing to work hand in hand with fintech firms rather than against them. Banks provide the secure and regulated platforms on which fintechs innovate, ensuring that customer-facing solutions are safe, compliant, and scalable.

They also supply the liquidity and back-office systems that enable these platforms to function reliably, even as they grow to serve millions of users. And in many instances, banks and fintechs come together to co-create products that combine the agility and creativity of startups with the stability, trust, and risk management expertise of established institutions.

In fact, behind every mobile wallet credit, behind every instant digital loan disbursement, there is a bank quietly making sure that the transaction happens safely and efficiently. Far from being on opposing sides, banks and fintechs are partners in progress, working together to build an ecosystem that is bigger and stronger than either could achieve alone.

The Human Side of Banking: Why It Still Matters

At its heart, banking has always been built on trust. It is the trust that savings will be protected, that loans will be available when opportunities or challenges arise, and that every transaction; no matter how small, will be handled with accuracy and care.

In an age of algorithms and automation, this human element is more important than ever. While digital platforms can execute processes with astonishing speed, they cannot replace human judgment, institutional responsibility, and the governance structures that come with decades of banking experience. No algorithm can fully replicate the delicate balance of prudence, empathy, and accountability that underpins sound financial decisions.

Beyond individual transactions, banks carry an even greater responsibility for the growth and development of the wider economy. They mobilize deposits into productive investments, turning household savings into the capital that fuels industries and job creation.

They support small and medium enterprises with structured credit, helping them grow from modest beginnings into engines of local and national prosperity. They also finance major infrastructure projects; from roads to power plants, that enable a country to expand its economic horizons.

These roles go far beyond what a fintech app or telco platform can do. While technology brings speed and access, it is banks that ensure the stability, depth, and continuity of a nation’s economic progress.

Looking Ahead: A Future With Banks at the Centre

The next chapter of Ghana’s financial story will be unmistakably digital. It will be a future defined by collaboration, inclusion, and innovation. Far from stepping aside, banks are positioning themselves at the heart of this transformation.

Across the industry, banks are modernizing their systems to deliver fast, simple, and user-friendly services that match the pace of contemporary life. They are forging partnerships with innovators; from fintech startups to technology firms – to extend financial inclusion to every Ghanaian, no matter where they live or work.

This commitment to transformation also involves significant investment in cybersecurity, data analytics, and customer experience, ensuring that as the ecosystem grows more complex, it also becomes more secure and customer-focused. Initiatives such as GhanaPay are emblematic of this vision, bringing the industry together to create a unified, interoperable platform that serves the needs of all.

The message is clear: rather than fading into the background, banks will remain the foundation on which Ghana’s digital financial future is built. They will continue to provide the trust, scale, and stability that enable innovation to thrive while ensuring that the benefits of digital finance reach every corner of society.

Global Perspective

Even in the most digitalised economies, banks remain at the heart of finance. In the U.S., Zelle (a bank-owned platform) powers instant payments, and Apple Pay still settles through banks. In Japan, J?Coin Pay and PayPay depend on bank infrastructure. Sweden and Singapore run on “open banking” where fintechs innovate on rails built by banks. China’s Alipay and WeChat Pay hold wallet balances in bank deposits. And in Kenya, every shilling in M?Pesa sits in trust accounts with banks.

The global pattern is unmistakable: digital finance grows on banking rails. Far from being replaced, banks in these markets have become more vital, adapting to ensure stability, liquidity, and trust.

Conclusion

The conversation sparked by the original article is both timely and important. It forces us to reflect on how banking has changed and where it is heading. There is no denying that today’s banking experience is vastly different from what it was 20 or 30 years ago. Customer expectations have shifted, digital platforms have become the new normal, and the speed of innovation has accelerated.

But none of these make banks less relevant. On the contrary, these changes underscore the adaptability, resilience, and enduring importance of banks.

Banking is necessary, and banks as trusted custodians, innovators, and collaborators  are more necessary than ever. The future of Ghana’s financial services sector will not be defined by a contest between banks and fintechs, but by their ability to work together. It is this spirit of partnership that will drive a safer, more inclusive, and more dynamic financial ecosystem; one that works for everyone, everywhere.

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