Technological innovation has, in recent years, been driving profound changes in Ghana’s finance culture and, while still nascent, this shift towards frictionless financial transactions promises transformative change for many industries and people – especially those in most need.
That promise was heightened in Ghana with Dalex Financial Services’ August 13, launch of SWIFT (Safe Wise Investment For Tomorrow) a new contributory investment scheme, which intends to promote financial inclusion in the country.
The high-earning, flexible and convenient micro-investment product is accessed and managed on the mobile phone with the mobile number acting as the customer’s investment account number.
The scheme allows for the deposit of a target amount, starting from as low as GH₵1.00, and as frequently as may be desired; on daily, weekly, monthly, or ad hoc basis. Contributions can be made through over 20,000 points including mobile money agents, post offices, and bank branches in addition to the mobile phone.
SWIFT then invests the contributions made in any 30-day period and pays a competitive compound interest from month to month until the maturity of the investment.
Dr Kwesi Botchwey, Ghana’s former Finance Minister told Business World at the launch; “The implications for the, hitherto, financially marginalised and the extreme poor are profound and wide-ranging; the lower transaction costs will open new markets serving the “base of the pyramid”, while opportunities to earn a healthy income on savings will help many adopt a savings culture.”
An added benefit to contributors is the opportunity to use one’s savings as collateral for credit. Customers qualify for highly concessionary loans of up to 80% of balances in their SWIFT account; a privilege available to only SWIFT accounts holders.
Launching the product, Director of Operations at Dalex, Joe Jackson said the product was created essentially to engender a savings and an investment culture among Ghanaians for a brighter future. Savings, he said, is a good thing no matter how one looks at it.
“People who save are better off as individuals, are better off as families, communities and nations,” noted Dalex’s Director of Operations, Mr Joe Jackson, explaining that as the masses, especially those marginalised by the financial system or underserved, save regularly and have their monies invested, this would help, not only improve the national statistics on financial inclusion, but also affect the national economy positively.
By:
Emmanuel Kwablah
Editor, Business World