Banking consultant Nana Otuo Acheampong has kicked against the use of Mobile Money to pay school fees as an alternative to paying through commercial banks.
In recent times, some telcos in Ghana have developed innovative products to help parents pay school fees through Mobile Money transfer.
But speaking to Citi Business News, Nana Otuo Acheampong was of the view that Mobile Money can be used to transfer funds to students but the banking system should be used to pay school fees due to its secured processes.
“I will not prefer that to the bank system for the simple reason that the bank system credits the school account directly. Mobile Money means somebody must go and collect the money,” he said.
According to him, allowing a third party to withdraw the money through the Mobile Money system increases the risks of losing it.
“What if you have an unscrupulous bursar who is supposed to go and collect the money. Collects it and never come back to the school, what do you do,” he asked.
He stated that it is important to encourage the banking system since it enhances security and will improve record keeping appropriate for the education system.
He, however maintained that Mobile Money could be used to send funds to students as a way of financial inclusion.
“When it comes to sending money to students and individuals I will encourage the use of mobile money because it goes to the person directly,” he said.
Touching on the need to encourage the banking system in paying school fees, Nana Otuo Acheampong was of the view that the development does not necessarily mean banks are desperate for deposits, hence they must be encouraged.
“Definitely this is a good thing. If you can pay your school fees through a special account, I think it is good for the banking industry. We must encourage it and applaud the banks for bringing up such innovative products,” he said.
He maintained that it is important to urge the banking sector to develop innovative means to solve modern problems.
He stated that with growth in technology, banks will always develop innovative products to meet the demands of customers.
He added that the outdoor of innovative products by banks demonstrates how the banking system is proactive in solving challenges to enhance financial inclusion
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By: Lawrence Segbefia/citibusinessnews.com/Ghana