In a bid to remove risks involved in carrying cash as buyers go to purchase the raw materials from farmers, a Ghanaian firm, AIMS Ltd has developed a mobile banking solution that aims to address this problem. The service is currently running on pilot with Ecobank to source cashew nuts for processors.
According to Judson Welsh, the CEO of AIMS,
[pullleft float="alignleft"] Instead of carrying cash in a box to purchase an agricultural commodity in a rural area, the answer is to set up a transparent system for the banker, buyer and supplier which permits traceability of the money movements,” [/pullleft] “
The new service will work as follows: The buyer, who is also the bank’s client, will identify the potential supplier, who is introduced to the bank. Once the names and identities of the suppliers and their bank accounts are known or established, together with their mobile phone numbers, a simple security code can be introduced for notifications of transfers. The bank then credits the suppliers account directly, and notifies both parties by mobile phone.
[pullleft float="alignleft"] ”The negotiations between the buyer and the supplier take place as they would normally for quality and quantity, but instead of handing over cash, the buyer notifies the bank of the amount required for the supplier (prior identification established) [/pullleft]“ Judson Welsh explained.
