By the end of 2023, the number of Automated Teller Machines (ATMs) deployed by banks across Ghana reached 2,287, marking a modest increase of 1.4% compared to the previous year. This reflects a continued expansion of traditional banking infrastructure despite the shift toward digital financial services.
In stark contrast to the growth in ATMs, the number of Point of Sale (POS) terminals in the country experienced a significant decline. According to the 2023 Payment Systems Oversight Annual Report, POS terminals dropped by 6.91%, bringing the total number to 12,491 by the close of 2023. The report attributed this decrease primarily to the decommissioning of non-functional POS devices by some commercial banks, a move likely aimed at optimizing operational efficiency.
While the decline in POS terminals could be seen as a setback, the report emphasized that it is part of a broader trend in Ghana’s banking landscape, where digital transformation is taking center stage. As banks continue to prioritize investments in digital platforms, traditional banking tools like POS systems are being overshadowed by newer, more efficient forms of financial transactions.
Mobile banking apps emerged as the most popular digital transaction tool in 2023, surpassing other options such as USSD services and online banking. This growing preference for mobile banking highlights a shift in consumer behavior, as more Ghanaians opt for the convenience of accessing banking services directly from their smartphones.
The surge in demand for digital banking solutions is further evidenced by the significant growth in the number of digital products offered by banks. In 2022, there were 109 digital banking products available to consumers, but by the end of 2023, that number had risen to 125. This increase demonstrates the banking sector’s responsiveness to the evolving needs of consumers, who are increasingly looking for faster and more secure ways to manage their finances.
Debit card issuance also saw notable growth in 2023, with over 6 million debit cards issued by the end of the year. This represents a 17.55% increase compared to the 5.1 million debit cards issued in 2022. The rise in debit card usage reflects the continued importance of cashless transactions in everyday life, as more Ghanaians turn to electronic payments for both convenience and security.
Credit card issuance followed a similar upward trend, growing by 11.4% to over 54,000 cards in 2023. Though credit cards are still less common than debit cards in Ghana, their steady growth indicates that more consumers are becoming comfortable with credit-based transactions and are willing to explore a wider range of financial products offered by banks.
Overall, the report paints a picture of a banking sector in the midst of rapid digital transformation. While traditional banking tools like ATMs continue to expand, the real growth is happening in the digital space. Banks are increasingly investing in mobile apps, USSD platforms, and online banking services to meet the changing demands of consumers. These efforts are not only improving customer experience but are also making banking more accessible to a broader segment of the population.
The decline in POS terminals, while notable, is not necessarily a negative development. As more consumers and businesses adopt digital payment methods, the reliance on POS devices may naturally decrease. Additionally, the decommissioning of non-functional devices could lead to a more efficient and reliable POS network for the future.
In conclusion, Ghana’s banking sector in 2023 was characterized by both growth and adaptation. The increase in ATMs and the continued rise in debit and credit card issuance show that traditional banking methods still play a significant role in the financial ecosystem. However, the true momentum is in digital banking, where mobile apps and online platforms are reshaping how Ghanaians interact with their banks. As the demand for digital solutions grows, banks will likely continue to innovate and expand their offerings.
