Banking governance expert Dr. Richmond Akwasi Atuahene has recommended Ghana adopt principles-based regulation for its digital financial sector, according to a policy paper.
Atuahene argued this approach balances innovation with consumer protection in fast-evolving fintech, mobile money, and digital currency markets. “The challenge facing financial regulators today is not whether to regulate innovation, but how to do so in a manner that protects consumers without stifling growth,” he stated, attributing the position to his research.
Atuahene characterized Ghana’s current rules-based framework as increasingly inadequate for emerging financial services. He proposed principles-based supervision focusing on outcomes like safety and fairness rather than rigid compliance methods. “Principles-based regulation empowers institutions to innovate responsibly while giving regulators flexibility that can respond to evolving risks,” he explained, sourcing the analysis to his paper.
Bank of Ghana data show mobile money dominates digital transactions, with 59.7 million registered accounts and four million mobile loans disbursed as of December 2024. Atuahene acknowledged this expansion improves financial inclusion but introduces data privacy, cybersecurity, and fraud risks requiring adaptive regulation.
Under his proposed model, regulators would set high-level objectives while institutions determine implementation methods, maintaining codified rules for high-risk areas like anti-money laundering. “Principles-based supervision fosters a culture of responsibility and risk management within firms,” Atuahene noted, adding it strengthens consumer protection by requiring institutions to act ethically.
He recommended expanding regulatory sandboxes and adopting RegTech for real-time monitoring. Citing the UK and Indonesia as examples, Atuahene urged Ghana to tailor this approach locally, proposing a hybrid rules-principles model during transition. He warned regulatory inertia could undermine Ghana’s e-Cedi pilot and financial innovation: “The shift… is essential if Ghana is to sustain the gains of financial inclusion.”
Bank of Ghana currently engages fintechs through sandbox initiatives and payment system modernization efforts.
Ghana’s mobile money transaction value grew from GHS 78.9 billion in 2018 to GHS 1.2 trillion in 2024, per Bank of Ghana reports.
