A decade of breaking down barriers: Fidelity Bank’s financial inclusion journey in Ghana | Economic news

In 2011, a surprising revelation from Fidelity Bank and its research partner, Fino, highlighted a significant challenge in Ghana’s financial landscape: 70% of the adult population was unbanked. Although the country has 28 banks, the vast majority of these institutions focused their services on the 30% already banked, designing products and processes that only addressed a small fraction of the population. For the other 70%, banking seemed like a distant and cumbersome prospect, full of obstacles: lengthy processes, intimidating documentation requirements, and the prevailing myth that banking was for the privileged. This reality presented a huge opportunity for change and Fidelity Bank rose to the challenge.

Identify the gap and seize the opportunity

Rather than accepting the status quo, Fidelity Bank saw the untapped 70% of the population as an opportunity to innovate. The bank recognized that if it could bring these unbanked people into the financial system, it would not only expand its customer base but also boost economic growth by promoting financial inclusion. From 2011 to 2013, Fidelity Bank embarked on a journey of research and collaboration, partnering with like-minded organizations to develop a strategy that was both bold and inclusive.

The bank understood that the solution required more than just tweaking the existing banking system and product; this required a complete reinvention of the way banking services were delivered. The objective was clear: to bring banking services closer to citizens, directly in their communities, without them needing to enter a traditional banking hall. Essentially, rather than waiting for people to come to the bank, the bank needed to reach out to people with a banking product that removes KYC barriers and ensures accessibility.

This innovative thinking led to the creation of inclusive banking and agency banking units, respectively responsible for developing low KYC accounts and deploying agent outlets to ensure accessibility to key banking services.

The launch of branch banking and smart accounts: a new chapter begins

In 2013, Fidelity Bank tested its agency banking model with 24 agents as well as the Smart account in Accra. In 2014, it had officially launched the Fidelity Smart Account, a revolutionary product with minimum know-your-customer (KYC) requirements, allowing accounts to be opened in just five minutes. The initiative made Fidelity Bank the first in Ghana to introduce branch banking and low KYC account, following approval from the Bank of Ghana.

Agency Banking, a system that allows people to bank at different locations near them, such as pharmacies, stores or even mobile money agents. The essence of agency banking was to enable ordinary Ghanaians to access basic banking services within their communities. This model had a particularly strong impact in rural areas where access to traditional banking services was almost impossible. Collaborations with organizations such as Ghana Post and Melcom have enabled the creation of Fidelity agent points across the country. The initiative has gained traction with agents being the face of banking in their neighborhood, making banking more accessible and convenient.

Overcoming skepticism and building trust

Initially, there was skepticism about the feasibility of branch banking and Smart Account adoption. Would people trust these agents with their money? Is there a real gap for unbanked people in terms of access to basic financial services? Will a low KYC account open the borders for the unbanked and underbanked to access financial services through agents? Would the quality of service be comparable to that of a traditional bank? Fidelity Bank has met these challenges head-on through a series of aggressive financial education programs. These programs targeted women and youth groups, agricultural cooperatives and other segments, overcoming language barriers and dispelling myths about the banking sector. In particular, they provided financial education to the “Kayayei” of Accra and small farmers in rural areas like Garu, demonstrating that banking was indeed accessible to all.

A remarkable impact: changing the banking landscape

The impact of Fidelity Bank’s efforts is evident today. Through innovative products such as Smart Account and Yello Save, the bank’s Inclusive Banking unit has successfully onboarded over 1.5 million previously unbanked or underbanked people. This achievement has contributed significantly to reducing Ghana’s unbanked adult population from 70% in 2011 to just 38% today. Fidelity Bank’s pioneering approach set an industry benchmark, inspiring other banks to adopt similar strategies. The ripple effect of these initiatives is considerable; local agents have effectively become community bankers, creating jobs, boosting local economies and increasing their own incomes.

The success of Fidelity Bank’s financial inclusion initiatives can be attributed, in part, to strong support from key development partners. Organizations such as USAID, FSD Africa, UNCDF, IFC, IFAD, World Bank and GIZ provided critical funding and technical assistance, totaling more than $3 million. This collaborative effort has played a critical role in the bank’s progress in expanding financial access to underserved communities.

Product and service innovation

In 2019, the bank deployed a USSD channel *776*5# as an alternative agent channel to improve connectivity and eliminate network connectivity issues, especially in rural areas. The introduction of the USSD channel has enabled customers in areas with poor internet connectivity to access basic banking services. Today, customers can easily reactivate their dormant account through the enhanced USSD channel without visiting any branch. Additionally, in 2021, the bank introduced a self-service account reactivation USSD code *776*77# to enable customers to easily reactivate their inactive accounts without visiting a branch.

Fidelity has also expanded its product line to meet the diverse needs of its customers. The launch of Smart Goal accounts – micro-investment, Smart Business accounts – for micro-enterprises and Yello Save accounts (integrated into the MTN MoMo wallet) has made saving more accessible.

The first digital financial literacy led by the Bank through an interactive voice response (IVR) platform was launched in 2021. The IVR platform provides financial information in a simple, educational and entertaining way. The 5-module literacy journey guides users through key concepts such as financial management, budgeting, savings plans, savings channels and remittances in English, as well as a few local languages dominant. A distinctive feature of the platform is that it engages users throughout the journey to economic independence, offering tailored solutions while providing easy-to-access content and relevant information that helps users to make wise financial decisions.

Recognition and continued commitment

Fidelity Bank’s pioneering efforts in financial inclusion have been recognized by numerous awarding bodies since 2013. Among them are the first finalist for product innovation – Ghana Banking Awards, the best bank in bank branch by the Business Finance Innovation Awards and later received. the Excellence in Agency Banking Award in 2022 by the Instinct Business Awards. The IVR digital financial education platform received the Product Launch of the Year award at the 11th Annual Marketing World Awards.

The Fidelity Bank agent network, which now numbers over 8,000, is the largest agent network run by the Bank in Ghana. It also has more than 1.5 million customers registered on various financial inclusion products. This monumental achievement represents a decade-long journey that has transformed Ghana’s financial landscape, proving that with the right strategy and commitment, banking services can be made accessible to the last inch.

The future of financial inclusion: believe with us

As Fidelity Bank celebrates 10 years of this transformative journey in financial inclusion, the message is simple: keep believing with us. The bank remains focused on continued innovation and expansion. The introduction of digital microcredit, Smart Loan, which requires no collateral or documentation, demonstrates the bank’s continued efforts to simplify banking operations. There are also plans to explore micro-insurance options, thereby ensuring that every Ghanaian, regardless of their economic status, has access to comprehensive financial services.

Going forward, efforts will be made to maintain regular engagement with agents, responding to their needs and providing them with the necessary support to facilitate their work and improve their income. Several initiatives are underway to empower these agents, allowing them to better serve their customers and increase their revenue generation capabilities.

The story of Fidelity Bank is a powerful example of how financial institutions can drive inclusive growth by removing barriers, building trust and bringing services closer to people. The journey is far from over, but the foundations laid over the last decade position Fidelity Bank as a true leader in financial inclusion in Ghana.