The relevance of digital and physical banking systems within modern economies continues to evolve, showcasing the varied experiences of users across different financial platforms.
Sitting on a wooden bench outside her makeshift house near Koforidua, 68-year-old Abena Mensah pulls out her e-Zwich card from a cloth purse. For nearly ten years, this card has been her lifeline, providing access to her monthly pension without the need for traveling to distant banks.
"This card has made things easier for me," she says. "But sometimes, the system doesn’t work, and I must wait for days to get my money. I hear others talk about mobile money, but I don’t know how to use it." Abena’s story reflects the experiences of thousands of Ghanaians who rely on e-Zwich for their financial needs.
Launched in 2008, e-Zwich was aimed at bringing the unbanked population within the formal financial framework. Its biometric feature allows individuals without traditional identification to access financial services securely. Over time, it became popular for disbursing government funds and allowances to students and farmers.
Despite its benefits, e-Zwich faces potential obsolescence amid the rise of mobile money platforms. The increasing dominance of platforms from telecom giants like MTN and Vodafone is reshaping Ghana's financial ecosystem.
Mobile money services enable users to perform transactions, pay bills, and access microloans simply via their mobile phones, making them highly preferred due to their ease of use and fast transactions. Traditional e-Zwich requires physical cards and point-of-sale devices, often leading to frustrating delays, particularly for rural clientele.
Former national service personnel remarked, "It’s slow, and not many customers use it. Mobile money is faster and easier." Many merchants also find e-Zwich cumbersome and lean toward mobile money due to its flexibility.
Professor Haruna Issahaku of the University of Development Studies proposed strategies for revitalizing e-Zwich, stressing the need to target rural areas and educate users about its benefits. "Renewed efforts to target rural areas, collaborate with government programs, and educate users could boost adoption rates," he suggested.
Clement Anane, an IT expert, suggested linking e-Zwich to mobile wallets to merge biometric security with the convenience of mobile money. He emphasized, "Seamless transfers between e-Zwich and mobile money accounts could make the platform more appealing." Many users feel addressing delays and enhancing the reliability of point-of-sale devices is key to regaining their trust.
Conversely, the banking sector worldwide faces its own challenges. While some banks like JP Morgan Chase and Bank of America have experienced branch reductions recently, many Indian banks have bucked this trend by focusing on branch expansions. Dheeraj Sanghi of Yes Bank highlighted how 80-95% of retail banking business is still conducted through physical branches in India, indicating its continuing relevance.
"With 80-95% of the current retail banking business in India being contributed by physical branches, banks must consistently upgrade their branch networks to maintain strong brand presence and meet ever-evolving customer needs," he stated.
Even as digital banking gains momentum, the necessity for human interaction remains. Research shows about 70% of consumers are open to buying through digital channels, yet only 23% fulfill their financial needs digitally. Customers prefer real interactions with financial advisors, particularly for complex decisions.
Sanghi noted, "The traditional brick-and-mortar model continues to remain relevant for both banks and their customers alike," emphasizing the enduring need for brick-and-mortar presence.
Technology integration is facilitating this transformation: banks are introducing interactive kiosks and advanced AI systems to create more engaging environments where personalized advice can be embraced.
Although digital disruption appears to threaten physical models, it can also augment customer experiences and operational efficiencies through technology, thereby enhancing trust and relationship management which are quintessential to banking.
For customers like Abena Mensah, the hope lies within the banks effectively adapting to modern changes, making banking more accessible and efficient. "If they can make it faster and easier to use, I’ll keep using it," she expresses, showcasing the delicate balance every financial institution must strike.
The question remains: can e-Zwich evolve alongside the digital transformation, and will traditional banks continue to entwine physical and digital experiences to build enduring trust with their clients? Only time will reveal the longevity of these banking systems and their capabilities to cater to the needs of modern economies.
