- 5 Marks
Question
The development of mobile money in Ghana has provided a section of the population with banking services that were previously not accessed. This expansion in financial inclusion is seen as a positive step towards boosting economic activity and alleviating poverty. However, there are some disadvantages to mobile money compared to a traditional bank account.
Required:
Explain FOUR disadvantages of mobile money compared to a traditional bank account.
Answer
Disadvantages of mobile money compared to a traditional bank account include:
- Higher Transaction Fees – Mobile money transactions may incur higher charges for transfers and withdrawals compared to traditional banks.
- Lower Regulation – Mobile money providers are not banks and may be subject to less regulatory oversight, leading to potential security and compliance risks.
- Limited Financial Services – Unlike banks, mobile money services do not offer full banking solutions like loans, investment opportunities, and financial advisory services.
- Additional Taxation – Transactions via mobile money may attract additional taxes, increasing the cost of usage compared to traditional banking.
- Topic: Treasury management
- Series: Nov 2024
- Uploader: Salamat Hamid