a) Five major issues affecting the operations of financial institutions such as Ghana Bank:

1. Globalization and Increased Competition: Globalization has opened up markets, allowing foreign banks and FinTech firms to enter the Ghanaian and West African banking sector. For Ghana Bank, this means competing with international players like Nigerian banks expanding into Ghana or global FinTechs like Flutterwave. Under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), banks must comply with BoG’s foreign ownership rules, but this still intensifies pressure on market share, as seen in the 2017-2019 banking cleanup where weaker banks like UT Bank collapsed due to competitive pressures.
2. Ubiquity of Mobile Technologies and Social Media: The widespread adoption of mobile phones and social media in Ghana (with over 40 million mobile subscriptions as of 2025) has shifted customer expectations towards instant, digital services. Ghana Bank faces issues in integrating these, risking loss of younger customers to mobile-first FinTechs like MTN MoMo. The Bank of Ghana’s Cyber and Information Security Directive 2020 requires robust security for mobile apps, but implementation can strain resources.
3. Disruptive IT Innovation: Innovations like blockchain and AI are disrupting traditional banking models. For instance, FinTechs offering peer-to-peer lending bypass banks, reducing Ghana Bank’s loan portfolio. The Payment Systems and Services Act, 2019 (Act 987) regulates these, but banks must innovate to comply, as evidenced by the rise of digital wallets post-2019.
4. Cloud Computing and Data Management Challenges: Adopting cloud services for scalability exposes banks to data privacy risks. Ghana Bank’s operations across countries must align with varying data protection laws, including Ghana’s Data Protection Act, 2012. The 2022-2024 Domestic Debt Exchange Programme (DDEP) highlighted vulnerabilities when IT systems failed to handle rapid data processing during debt restructurings.
5. Proliferation of Digital Payment Methods in a Volatile Environment: With economic volatility from inflation and currency fluctuations in Ghana (post-DDEP recovery), digital payments via platforms like GPay increase, but so do fraud risks. BoG’s Liquidity Risk Management Guidelines demand resilient systems, yet events like the 2020 COVID-19 lockdowns exposed gaps in digital infrastructure for banks like Ghana Bank.

b) Five practical ways IT could be leveraged by Ghana Bank to remain competitive:

1. Adopt Digital Banking Platforms: Invest in mobile banking apps and internet banking to offer seamless services, reducing branch dependency. For example, partnering with FinTechs under BoG’s sandbox (as per Act 987) can integrate features like instant loans, enhancing competitiveness as seen in Ecobank Ghana’s Omni Plus platform.
2. Leverage Big Data Analytics for Customer Insights: Use IT tools to analyze customer data for personalized services, improving retention. Compliant with BoG’s Corporate Governance Directive 2018, this can predict needs, like offering tailored savings products during volatile times, similar to Stanbic Bank Ghana’s use of analytics post-cleanup.
3. Implement Cloud-Based Infrastructure: Migrate to secure cloud services for cost-effective scalability and disaster recovery. This addresses globalization by enabling cross-border operations, with encryption per Cyber Security Directive 2020, as Barclays (now Absa) did in Ghana for efficient data sharing.
4. Enhance Cybersecurity with AI-Driven Tools: Deploy AI for real-time fraud detection in digital payments, mitigating disruptive innovations. BoG’s directives mandate this, and practical implementation like GCB Bank’s AI monitoring has reduced losses from social media scams.
5. Develop API Integrations for Ecosystem Partnerships: Open APIs to collaborate with FinTechs and social media platforms for expanded services, like embedded finance. This maximizes shareholder value in a volatile environment, aligned with Basel III adaptations in Ghana, boosting visibility as Access Bank Ghana has through partnerships.