In 2011, a groundbreaking discovery by Fidelity Bank and its research partner, Fino, revealed a significant issue within Ghana’s financial sector: 70% of adults were unbanked. Despite having 28 banks operating in the country, most focused their services on the already banked 30%, tailoring products and processes for a small segment of the population.
For the remaining 70%, banking felt like an unattainable goal, fraught with obstacles—lengthy procedures, intimidating documentation, and the widespread belief that banking was only for the privileged. This scenario presented a substantial opportunity for transformation, which Fidelity Bank embraced.
Rather than accepting the existing situation, Fidelity Bank identified the unbanked majority as a chance for innovation. The bank realized that by integrating these individuals into the financial system, it could expand its customer base and stimulate economic growth through financial inclusion.
From 2011 to 2013, Fidelity Bank engaged in extensive research and collaboration with like-minded organizations to develop a strategy that was both ambitious and inclusive. They understood that the solution required more than merely adjusting the existing banking framework; it necessitated a complete rethinking of how banking services were delivered. The objective was straightforward: to bring banking closer to communities, eliminating the need for individuals to visit a traditional bank branch.
Instead of expecting people to come to the bank, Fidelity Bank aimed to reach out to them with products designed to remove KYC barriers and ensure accessibility. This forward-thinking approach led to the establishment of Inclusive Banking and Agency Banking Units, which developed low-KYC accounts and introduced agent outlets to enhance access to essential banking services.
The Launch of Agency Banking & Smart Account: A New Era
In 2013, Fidelity Bank launched its Agency Banking model with 24 agents and introduced the Smart Account in Accra. By 2014, the bank officially rolled out the Fidelity Smart Account—a groundbreaking product with minimal Know Your Customer (KYC) requirements, enabling account openings in just five minutes. This initiative marked Fidelity Bank as the first in Ghana to establish an Agency Banking network and a low-KYC account, following approval from the Bank of Ghana.
Agency Banking allows individuals to conduct transactions at nearby locations such as pharmacies, shops, or mobile money agents. Its essence lies in empowering Ghanaians to access basic banking services within their own communities, particularly benefiting those in rural areas where traditional banking access is scarce. Collaborations with organizations like Ghana Post and Melcom led to the creation of Fidelity Agent Points nationwide, with agents becoming the face of the bank in their neighborhoods and making banking more accessible and convenient.
Overcoming Skepticism and Building Trust
Initially, there were doubts about the viability of Agency Banking and the adoption of Smart Accounts. Questions arose regarding whether people would trust agents with their money, if there was a genuine need for the unbanked to access basic financial services, and whether the quality of these services would match that of traditional banking.
Fidelity Bank addressed these concerns through comprehensive financial literacy programs targeting women, youth, farmer cooperatives, and other groups, overcoming language barriers and dispelling banking myths. They specifically reached out to ‘Kayayei’ (head porters) in Accra and smallholder farmers in rural areas like Garu, demonstrating that banking was for everyone.
The results of Fidelity Bank’s initiatives are evident today. Through innovative products like the Smart Account and Yello Save, the Inclusive Banking unit has successfully onboarded over 1.5 million previously unbanked and underbanked individuals. This achievement has significantly reduced Ghana’s unbanked adult population from 70% in 2011 to just 38% today.
Fidelity Bank’s groundbreaking approach has set a standard in the industry, inspiring other banks to adopt similar strategies. The positive ripple effects of these initiatives are extensive; local agents have effectively become community bankers, creating jobs, boosting local economies, and enhancing their incomes.
The success of Fidelity Bank’s Financial Inclusion efforts can also be attributed to the substantial support from key development partners. Organizations such as USAID, FSD Africa, UNCDF, IFC, IFAD, The World Bank, and GIZ have provided vital funding and technical assistance, totaling over USD 3 million. This collaborative effort has been essential in driving the bank’s progress in expanding financial access to underserved communities.
Product & Service Innovation
In 2019, the bank introduced a USSD channel (7765#) as an alternative agent channel to improve connectivity and address network challenges, especially in rural areas. This USSD channel enables customers in areas with limited internet access to utilize basic banking services. Customers can now conveniently reactivate dormant accounts via the enhanced USSD channel without visiting a branch. In 2021, the bank also launched a self-service account reactivation USSD code (77677#) for account reactivation.
Fidelity expanded its product offerings to meet the diverse needs of its clientele. The introduction of Smart Goal Accounts (for micro-investments), Smart Business Accounts (for micro enterprises), and Yello Save Accounts (embedded in the MTN MoMo Wallet) has made saving more accessible.
In 2021, the bank launched the first bank-led digital financial literacy program through an Interactive Voice Response (IVR) platform. This platform provides financial information in an engaging and educational manner. The five-module literacy journey guides users through key concepts such as financial management, budgeting, saving strategies, saving channels, and remittances in English and several local languages. A unique feature of the platform is its focus on helping users achieve economic independence, offering personalized solutions and easily accessible content to support sound financial decisions.
Recognition and Continued Commitment
Fidelity Bank’s pioneering efforts in financial inclusion have garnered numerous awards since 2013, including First Runner Up in Product Innovation at the Ghana Banking Awards, Best Bank in Agency Banking by the Business Finance Innovation Awards, and the Excellence in Agency Banking Award in 2022 by the Instinct Business Awards. The digital financial literacy IVR platform also received recognition as the Product Launch of the Year at the 11th edition of the Marketing World Awards.
Fidelity Bank’s agent network, now exceeding 8,000, is the largest bank-led agent network in Ghana, serving over 1.5 million customers enrolled in various Financial Inclusion products. This remarkable achievement marks a decade-long journey that has transformed Ghana’s financial landscape, demonstrating that with the right strategies and dedication, banking can be accessible to everyone.
The Future of Financial Inclusion: Believe with Us
As Fidelity Bank celebrates ten years of its transformative journey in financial inclusion, the message is clear: continue to believe with us, Ɛbɛ fa. The bank is committed to ongoing innovation and expansion, as evidenced by the introduction of Smart Loan, a digital micro-loan that requires no collateral or documentation. Plans to explore micro-insurance options are also underway, ensuring that every Ghanaian, regardless of economic status, has access to comprehensive financial services.
Looking ahead, Fidelity Bank will continue to engage regularly with its agents, addressing their needs and providing support to enhance their work and earnings. Several initiatives are planned to empower agents, enabling them to better serve their customers and increase their revenue-generating capabilities.
Fidelity Bank’s story exemplifies how financial institutions can drive inclusive growth by dismantling barriers, building trust, and bringing services closer to communities. While the journey is far from over, the foundation established over the past decade positions Fidelity Bank as a true leader in financial inclusion in Ghana.
