One of the main problems faced throughout Ghana was that financial systems were not automated or interconnected and offered no unified approach to payments, whether made by cheque or by direct debit or forward credit transactions. There were 11 clearing zones, of which all but one could only handle manual clearing. Not only was this proving to be a major stumbling block in the modernisation and perception of the banking industry in Ghana, but it was also seriously undermining potential growth and investment in the entire country.
Quick flow and accessibility of money were seen as key to aiding rural economies, as well as promoting commerce by increasing confidence in the financial sector and helping eradicate poverty as greater investment generates greater revenue across local communities.
Physically having to collect, sort, capture, validate and then mail cheques was extremely time-consuming and highly inefficient for Ghana’s financial institutions, often taking between three to ten days. GhIPSS sought a solution that would fundamentally change this outdated process.
Key goals included:
- The implementation of a National Switch to interconnect the systems of all banks, ATMs and point-of-sale devices (essentially, to combine multiple, silo’d individual payment systems into one, all-encompassing solution)
- The introduction of an electronic Cheque Codeline Clearing (CCC) system with Cheque Truncation together with the formation of a new Automated Clearing House electronic payment system so that multiple payment types could be processed using the same infrastructure.
Speed, security and ease of implementation of the solution to continually manage and support these requirements were essential to ensure a smooth switchover. The reassurance of easily accessible technical support was also a prerequisite to the success of this new, potentially life-changing financial infrastructure.
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