Demand for non-interest banking in Ghana rises sharply, says finance expert

Financial and banking sector observers say demand for non-interest banking and finance services in Ghana has grown “undeniably,” driven by shifting consumer preferences and increased awareness of ethical and alternative banking models. According to Prof. Gasti, a prominent economist, the growing interest in non-interest financial products reflects both moral and practical considerations among customers.

Non-interest banking refers to financial services that comply with principles avoiding interest (riba), instead using profit-and-loss sharing, leasing, and service-based structures. In a recent interview, Prof. Gasti noted that many customers are increasingly drawn to such models for religious reasons, trust in ethical finance, or dissatisfaction with conventional banking terms.

He highlighted that the demand is not limited to Muslims or faith-based groups. Many Ghanaians particularly small business owners, traders, and younger savers are exploring non-interest banking for its transparency, risk-sharing features, and perceived fairness. This trend, he argued, presents a unique opportunity for banks and financial institutions to diversify their offerings and tap into a new market segment.

Despite growing demand, Prof. Gasti cautioned that the sector faces structural challenges. To meet rising expectations, banks offering non-interest products must build robust regulatory frameworks, internal audit mechanisms, and specialised staff training. He warned that poor implementation could erode public confidence and hinder the sector’s growth.

Advocates of financial inclusion in Ghana have welcomed the rising interest in non-interest banking, especially among underserved populations who argue that conventional banking fees and interest rates are barriers to access. They say expanding non-interest banking could enhance financial inclusion, enable more people to save or access loans, and support small-scale enterprises.

As Ghana’s financial system evolves, the growing appetite for non-interest banking may reshape banking services, diversify the country’s financial marketplace, and promote more inclusive economic participation.