A Critical Analysis of the Regulatory Framework for the Financial Technology (FinTech) Sector in Ghana

Financial system regulations are evolving due to the impact of technological innovations. Central banks worldwide struggle to deal with regulatory challenges, especially the impact of technological innovations on the financial system. Financial Technology (FinTech) innovations generally occur ahead of regulations; therefore, critical challenges for central banks, including the Bank of Ghana, is how to stay ahead of these innovations and frame supervisory mechanisms to suit the FinTech space. Understanding this problem is crucial because the central bank's regulations can hurt or support the rapid adoption of FinTech in Ghana. This paper employs a qualitative approach to critically analyze the regulation of FinTech using framework analysis based on interviews of purposively selected experts and the use of secondary data. The results highlight the need for the banking regulator to delink FinTech rules from traditional regulatory functions. The paper recommends a new FinTech dynamic regulatory approach and suggests further research based on multiple countries' data; such research enables international comparison of various FinTech regulatory regimes and examines FinTech laws and regulations to investigate the dynamic model of FinTech regulations.