In 2011, a startling revelation by Fidelity Bank and its research partner, Fino, highlighted a significant challenge within Ghana’s financial landscape: 70% of the adult population was unbanked.
Despite having 28 banks operating in the country, the vast majority of these institutions focused their services on the already banked 30%, designing products and processes that catered only to a small fraction of the population.
For the remaining 70%, banking seemed like a distant, cumbersome prospect filled with barriers—lengthy processes, intimidating documentation requirements, and the prevailing myth that banking was only for the privileged. This reality presented an enormous opportunity for change, and Fidelity Bank took on the challenge.
Identifying the Gap and Seizing the Opportunity
Rather than accepting the status quo, Fidelity Bank saw the untapped 70% of the population as a chance to innovate. The bank recognized that if it could bring these unbanked individuals into the financial system, it would not only expand its customer base but also drive economic growth by fostering 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 would be both bold and inclusive.
The bank understood that the solution required more than just tweaking the existing banking system and product; it demanded a complete reimagining of how banking services were delivered. The goal was clear: bring banking closer to the people, right into their communities, without the need for them to step into a traditional banking hall.
Essentially, rather than expecting people to come to the bank, the bank needed to go to the people with a banking product which eliminates the KYC barriers and ensures accessibility.
This innovative thinking led to the creation of Inclusive Banking and Agency Banking Units, to respectively develop low KYC accounts and roll out Agent outlets to ensure accessibility to key banking services.
The Launch of Agency Banking & Smart Account: A New Chapter Begins
In 2013, Fidelity Bank piloted its Agency Banking model with 24 agents along with the Smart Account in Accra. By 2014, it had officially launched the Fidelity Smart Account—a revolutionary product with minimal Know Your Customer (KYC) requirements, allowing accounts to be opened in just five minutes.
This initiative made Fidelity Bank the first in Ghana to introduce an Agency Banking network and a low KYC Account, following the approval from the Bank of Ghana.
Agency Banking is a system that allows people to conduct banking transactions at various locations near them, such as pharmacies, shops, or even mobile money agents. The essence of Agency Banking was to empower ordinary Ghanaians to access basic banking services within their communities.
This model was particularly impactful in rural areas, where access to traditional banking was nearly impossible. Collaborations with organizations such as Ghana Post and Melcom saw the establishment of Fidelity Agent Points across the country. The initiative gained traction, with agents serving as the face of the bank in their neighbourhoods, making banking more accessible and convenient.
Overcoming Skepticism and Building Trust
At the onset, there was scepticism about the feasibility of Agency Banking and the adoption of Smart Accounts. Would people trust these agents with their money? Is there a real gap for the unbanked to access basic financial services? Will a low KYC account open the frontiers for the unbanked and under-banked to access financial services through agents? Would the quality of a service match that of traditional banking?
Fidelity Bank tackled these challenges head-on through a series of aggressive financial literacy programs. These programs targeted women and youth groups, farmer cooperatives, and other segments, overcoming language barriers and dispelling myths about banking. In particular, they provided financial education to ‘Kayayei’ in Accra and smallholder farmers in rural areas like Garu, demonstrating that banking was indeed for everyone.
A Remarkable Impact: Changing the Banking Landscape
The impact of Fidelity Bank’s efforts is evident today. Through innovative products like the Smart Account and Yello Save, the Bank’s Inclusive Banking unit has successfully onboarded over 1.5 million previously unbanked and under-banked individuals. This achievement has significantly contributed to reducing Ghana’s unbanked adult population from 70% in 2011 to just 38% today.
Fidelity Bank’s pioneering approach has set a benchmark in the industry, inspiring other banks to adopt similar strategies. The ripple effect of these initiatives is far-reaching; local agents have effectively become community bankers, creating jobs, stimulating local economies, and enhancing their own incomes.
The success of Fidelity Bank’s Financial Inclusion initiatives can be attributed, in part, to the significant support from key development partners. Organizations such as USAID, FSD Africa, UNCDF, IFC, IFAD, The World Bank, and GIZ have provided crucial funding and technical assistance, totalling over USD 3 million. This collaborative effort has played a vital role in driving the bank’s progress in expanding financial access to underserved communities
Product & Service Innovation
In 2019, the bank rolled out a USSD channel *776*5# as an alternative agent channel to enhance connectivity and eliminate network connectivity challenges, especially in rural areas. The introduction of the USSD channel enabled customers in areas with poor internet connectivity to access basic banking services.
Today, customers can conveniently reactivate their dormant account via 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 conveniently reactivate their inactive accounts without visiting any branch.
Fidelity also expanded its product line to cater to the diverse needs of its customer base. The launch of Smart Goal Accounts – Micro-Investment, Smart Business Accounts – for Micro Enterprises, and Yello Save Accounts (embedded in the MTN MoMo Wallet) made saving more accessible.
The first Bank-led digital financial literacy via an Interactive Voice Response (IVR) platform was launched in 2021. The IVR platform provides financial information in an easy, educational, and entertaining way. The 5-module literacy journey guides users through key concepts such as financial management, budgeting, saving plans, saving channels and remittance in English, as well as a few dominant local languages.
A distinct feature of the platform is that it engages users through the journey towards economic independence, offering tailor-made solutions while providing easy-to-access content and relevant information that helps users make sound financial decisions.
Recognition and Continued Commitment
Fidelity Bank’s pioneering efforts in Financial Inclusion have been rewarded by numerous awarding bodies as far back as 2013. Notable among them include First Runner Up in Product Innovation- Ghana Banking Awards, Best Bank in Agency Banking by the Business Finance Innovation Awards and later the Excellence in Agency Banking Award in 2022 by the Instinct Business Awards. The digital financial literacy IVR platform was awarded.
The Product Launch of the Year at the 11th edition of the Marketing World Awards.
Fidelity Bank’s agent network, now over 8,000, is the largest Bank-led agent network in Ghana. It also has over 1.5 million customers enrolled on the various Financial Inclusion products. This monumental achievement represents a decade-long journey that has transformed the financial landscape in Ghana, proving that with the right strategy and commitment, banking 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: continue to believe with us, Ɛbɛ fa. The bank remains focused on continuous innovation and expansion. The introduction of the digital micro-loan, Smart Loan, which requires no collateral or documentation, is a testament to the bank’s ongoing efforts to simplify banking. There are also plans to explore micro-insurance options, further ensuring that every Ghanaian, regardless of their economic status, has access to comprehensive financial services.
Moving forward, efforts will be made to maintain regular engagement with agents, addressing their needs and providing necessary support to facilitate their work and enhance their earnings. Several initiatives are in the pipeline to empower these agents, enabling them to better serve their customers and increase their revenue generation capabilities.
Fidelity Bank’s story is a powerful example of how financial institutions can drive inclusive growth by breaking down barriers, building trust, and bringing services closer to the people. The journey is far from over, but the foundation laid over the past decade positions Fidelity Bank as a true leader in financial inclusion in Ghana.
