Leveraging on remittances to drive financial inclusion in rural Ghana though an innovative financial literacy scheme

IFAD is partnering with Fidelity Bank Ghana under the PRIME Africa Programme initiative to enable remittance recipients in high-migration rural areas to increase their share of remittances saved in formal bank accounts. By targeting un(der)banked remittance recipients, Fidelity Bank is enabling termination of remittances directly into a savings account. Fidelity is partnering with Viamo to introduce financial education to remittance-receivers through IVR.

Budget:

Financed: €251,750
Co-Financed: €107,937

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Duration: 2022 ~ 2025

Project Category Financial Inclusion
Remittances & Digitalisation

Target Groups:

Remittance recipients in the rural Brong-Afaho and Central regions of Ghana receiving the greatest inflow of cash-based remittances through Fidelity Bank, and their relatives in selected European corridors and South Africa.

Programme

FFR Strategic Framework

PRIME Africa

Project Goals

To enhance the financial resilience and economic empowerment of remittance families through cost effective, digitalized flows and financial inclusion innovations.

Implementing Partners

Fidelity Bank Ghana is one of the commercial banks in Ghana offering services to meet the banking and financial needs of low-income customers, small-scale entrepreneurs and rural communities. In partnership with Viamo. Viamo is an international social enterprise connecting individuals to make better decisions via mobile technology.

Geographic Target

Ghana

Outcomes

Fidelity has been rolling out its interactive voice recording (IVR) financial education programme and awareness around its remittance-linked SMART account in rural areas in Ghana since may 2023. They have already exceeded project targets.
In 2023, the project commenced with the successful launch of marketing campaigns and branch activations in the Brong Ahafo and Central regions. These campaigns aimed to raise awareness through flyers, radio advertisements and the distribution of promotional incentives.
As a result, 5,512 Fidelity accounts were opened and activated in rural areas, facilitating the receipt of international remittances. These accounts collectively received a total of US$11.5 million in inbound remittances during this period, representing approximately 0.3% of remittance inflows into Ghana.
The accounts have also been used to store and save a portion of these remittances, with a balance of US$5.1 million at the end of the reporting period.
Money can be sent to Fidelity SMART accounts from various remittance services, including Western Union, MoneyGram, Ria, Small World, Unity Link, World Remit, and Transfast.
The Fidelity SMART account offers several benefits, including low KYC requirements, access via USSD and mobile app, no monthly maintenance fees, and a free SMART debit card upon account opening.
Supported by the grant, Fidelity has developed and distributed educational content on remittances through their IVR messaging solution in English and two local languages, Bono and Fante. This innovative financial education tool allows individuals to listen to the modules of their choice at their convenience, as many times as needed. This initiative builds on previous work Fidelity conducted with Viamo, funded by UNCDF in 2021.
Between June and December 2023, nearly 7,000 people from rural areas engaged with the remittances IVR module.
Furthermore, Fidelity trained 127 Inclusive Banking agents in rural areas. These agents are equipped to provide tailored advice on remittances, the advantages of using digital channels for sending and receiving money, the benefits of saving money digitally through the SMART savings account, and raising awareness on the financial education modules available via IVR.
Final expected beneficiaries: 60,000 remittance senders and receivers.