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Dalex Finance CEO Urges Financial Institutions to Embrace Non-Interest Banking and Finance, Says Early Adopters to Gain Competitive Advantage

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Dalex Finance CEO Urges Financial Institutions to Embrace Non-Interest Banking and Finance, Says Early Adopters to Gain Competitive Advantage

Chief Executive Officer of Dalex Finance, Joe Jackson, has expressed strong optimism about the Bank of Ghana’s planned rollout of non-interest banking and finance, describing it as a transformative opportunity for the country’s financial ecosystem.

Speaking during the NorvanReports, Economic Governance Platform (EGP), and Ghana Anti-Corruption Coalition (GACC) X Space discussion on the theme, “Beyond Interest: Can Non-Interest Banking Reshape Ghana’s Financial Future?” held on Sunday, November 9, 2025, Mr Jackson said financial institutions that fail to understand and adopt the non-interest banking model risk being left behind.

“In this 2025 world of finance, any institution that does not understand that non-interest banking is another channel to pursue is lost,” he remarked. “Once it is demonstrated that this model is profitable and appealing to borrowers, we’ll see an explosion in the customer base. The first institutions to enter the market will benefit the most.”

He emphasised that the introduction of non-interest banking presents a fresh avenue for growth and innovation within the financial industry, noting that the model would require a new set of skills beyond traditional lending practices. “It represents an upscaling of skills because the current ‘tick-the-box and lend’ approach will not work in this case,” he stated, adding that early adopters will gain a competitive advantage.

On the regulatory front, Mr Jackson highlighted the need for the Central Bank to develop the requisite capacity to effectively supervise non-interest financial institutions, stressing that the prudential intentions remain similar to legacy banking – focusing on stability and trust – but the underlying principles differ.

“In legacy interest-based finance, the core contract is lending, but in non-interest banking, finance is based on asset ownership, leasing, or partnership,” he explained. “The regulatory focus, therefore, shifts from interest rate sensitivity and credit risk to ethical compliance, risk-sharing integrity, and ensuring that every financial contract is linked to real economic activity.”

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He, however, cautioned that the successful implementation of the framework would require the Central Bank to strengthen its supervisory capacity, given the unique regulatory architecture and skill sets demanded by non-interest finance. “We are waiting to see if the Central Bank has the resources and skills to supervise this exciting initiative,” he noted.

Mr Jackson further observed that the adoption of non-interest banking would help reconnect finance to the real economy by promoting asset-based transactions and partnerships that generate tangible value. “If we get it right, we will have institutions that create value and become partners in nation-building. Non-interest bonds, for instance, could open new avenues for financing infrastructure,” he added.

He concluded that the success of Ghana’s non-interest banking rollout is both “mandatory and very important” for achieving sustainable financial inclusion and economic growth.

Over 70% of Ghanaians Have Limited Knowledge of Non-Interest Banking 

Meanwhile, the Director-General of the Islamic Finance Research Institute of Ghana (IFRIG), Dr Shaibu Ali, has underscored the need for intensified public education on non-interest banking and finance in Ghana, following findings from a nationwide survey conducted by the Institute.

Speaking during a webinar hosted by the Chartered Institute of Bankers Ghana (CIBG) on the theme “Non-Interest Banking and Finance: A Pathway to Ethical Banking and Inclusive Growth”, Dr Ali revealed that although awareness of non-interest banking has improved, the level of understanding among Ghanaians remains relatively low.

According to him, out of 6,000 respondents surveyed across all 16 regions, 4,160 respondents – representing 71.2 percent – indicated they were aware of the introduction of non-interest banking and finance in the country. However, 1,662 respondents, or 28.8 percent, said they had no knowledge of it.

“The problem is not about people being aware, but about their level of awareness,” Dr Ali remarked.

He disclosed that when respondents were asked to rate their level of awareness, only 27.9 percent described it as high, while 38 percent said it was moderate and 34.1 percent low. Combined, the moderate and low awareness levels accounted for 72.1 percent of total responses – a situation he said highlights the urgency for greater sensitisation.

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