Ghana’s Beloved Susu System Struggles to Survive in the Mobile Money Era

Ghana’s Traditional Susu System Faces New Test in the Age of Mobile Money

As Ghana deepens its digital financial transformation, a centuries-old savings tradition — susu — is fighting to stay relevant. The once-dominant informal savings network, long relied upon by market women, artisans, and small traders, now finds itself in quiet competition with mobile money and other digital finance tools.

According to the 2025 Global Findex Report, formal financial inclusion in Ghana has risen steadily, with 36% of Ghanaian women now saving through formal channels, almost double the 2021 figure. Yet, men remain about seven percentage points more likely to do so. The gender gap persists, highlighting the continued reliance of many women on informal systems like susu, which remain rooted in trust and community cooperation.

What Makes the Susu System Endure

Derived from the Twi expression meaning “to plan” or “little by little,” susu has served as Ghana’s oldest and most accessible savings model for generations. It thrives on social trust and collective responsibility — qualities that have made it indispensable for many, particularly women and low-income earners excluded from the formal banking sector.

Beyond being a savings method, susu has been a tool for social resilience and empowerment, especially among women in the informal economy. It fosters mutual support, encourages discipline in saving, and provides short-term liquidity for household and business needs.

“Susu is more than finance — it’s a social contract,” explains a member of the Ghana Cooperative Susu Collectors Association (GCSCA). “It has kept communities strong even before banks existed.”

Different Faces of the Susu Network

The susu ecosystem in Ghana operates in multiple forms, each tailored to local needs:

• Susu Collectors: Individuals who collect daily or weekly deposits from clients and return the total minus one day’s contribution as commission.
• Rotating Savings and Credit Associations (ROSCAs): Member groups where everyone contributes to a communal fund, and each participant receives the lump sum in rotation.
• Accumulating Savings and Credit Associations (ASCRAs): Savings groups that pool funds for major life expenses such as weddings, funerals, or education.
• Susu Companies: Registered institutions that combine traditional savings collection with microloans, offering a semi-formal bridge to the banking sector.

Despite this diversity, all susu models share one principle — trust. Each depends on reliability and community accountability, rather than technology or collateral.

The Bank of Ghana’s Formalization Effort

Recognizing the economic importance of the susu network, the Bank of Ghana (BoG) in 2011 introduced regulations under the Tier 4 Microfinance Framework to bring informal financial operators into the formal fold.

Under this policy, susu collectors and money lenders were required to register with recognized umbrella bodies like the Ghana Cooperative Susu Collectors Association (GCSCA). Members had to contribute to an Insurance Fund, designed to protect depositors against operational risks such as theft or default.

The regulation allowed susu groups to maintain flexibility while ensuring consumer protection through oversight by their associations. The Bank of Ghana delegated monitoring responsibilities to these associations, a move meant to integrate rather than suppress informal finance.

Modern Challenges: Digital Disruption and Trust Risks

Despite these reforms, the susu sector now faces intense pressure to adapt to Ghana’s fast-growing mobile money ecosystem. Platforms such as MTN Mobile Money, Vodafone Cash, and AirtelTigo Money have transformed how people save, send, and receive money — offering digital convenience that susu cannot easily match.

Ghana’s mobile money transactions reached GHS 1.9 trillion in 2024, according to the Bank of Ghana — a clear sign of the digital shift in financial behavior.

The traditional susu model, which depends on personal contact, is increasingly seen as slow and risky. Issues like theft, fraud, and poor record-keeping have long plagued operators. A single default by a member or collector can destroy community trust — the cornerstone of the system.

The Push Toward Digitization

The COVID-19 pandemic accelerated a wave of digitization across the sector. Many susu collectors and cooperatives began using mobile money channels to reduce cash handling and adopted digital record systems to replace handwritten passbooks.

This shift has improved transparency and reduced risks but has also exposed the limits of informal systems trying to modernize without losing their personal touch.

For many operators, the challenge lies in balancing modernization with identity. If susu becomes too formalized or app-based, it risks alienating the very people — particularly women in rural and informal markets — who depend on its social connection.

Emerging Hybrid Solutions

To bridge the gap between tradition and innovation, new digital platforms like SusuPaa are helping digitize susu operations without eroding their community roots.

SusuPaa integrates with licensed fintech partners to automate collections, send contribution reminders, and offer real-time analytics while keeping transactions tied to trusted susu leaders. The platform ensures compliance with banking regulations and enhances transparency for members.

According to the company, its model “preserves the heart of susu — community trust — while providing modern efficiency.” Such approaches demonstrate how technology can strengthen, rather than replace, traditional financial systems.

Why the Future of Susu Still Matters

The fate of susu is not just about nostalgia — it is about inclusive finance. For millions of Ghanaians who remain outside the banking system, susu offers a bridge to formal financial participation.

Experts argue that losing this model entirely could deepen existing gender and income disparities, particularly in rural areas where digital literacy remains low.

The World Bank notes that over 40% of Ghana’s adults still rely on informal savings methods, underscoring the continued relevance of systems like susu in achieving Ghana’s financial inclusion goals under Vision 2030.

Conclusion: Finding a Middle Ground

The susu system stands at a crossroads between heritage and modernization. While mobile money and fintech innovations offer convenience and security, they cannot fully replace the human trust networks that make susu thrive.

Ghana’s financial regulators and fintech innovators now face a critical task: integrating susu into the formal digital economy without destroying its communal foundation. Success could make Ghana a model for blending tradition and technology in Africa’s financial inclusion journey.

Read also: How to Link Your Mobile Money Account to Your Bank in Ghana for Faster, Cashless Transactions