Ghana’s Progress on Reaching Out to the Unbanked Through Financial Inclusion

Financial inclusion is a measure of the proportions of individuals and firms that use formal financial services. It serves as a vehicle for poverty alleviation and the driving force for the achievement of the global sustainable development goals (SDGs). The purpose of this study was to find out the progress achieved pertaining to financial inclusion in Ghana. The government of Ghana has for the past years consciously put in place policies and programs to facilitate the promotion of financial inclusion. These policies have resulted to rapid expansion of the banking sector thereby making formal financial services accessible to all. The expansion of bank branches, ATM coverage, increment in Debit/Credit cards ownership and mobile money account holders are indications of achievement in the financial inclusion agenda. An estimated 83.1% of Ghanaians have mobile money account, which has taken savings and other forms of financial services to the doorstep of the ordinary citizen. This has also resulted to a rise in the level of making/receiving payment digitally from 22% in 2014 to 44% in 2017 among rural dwellers. Bank branches coverage per 100,000 adults has grown from 4.8 in 2008 to 7.2 in 2016. Because of the branch visibility, account ownership has also seen a surge especially, in the rural areas where it used to be minimal. Although there has been some success, there is the need for the government to continue with the provision of an enabling environment for faster progress since achievement of financial inclusion enhances stability and faster economic growth.