Professional services firm PwC Ghana is urging banks to overhaul their business models, warning that declining interest rates will reduce profit margins and reshape the country’s banking industry.
Speaking at the 2026 PwC Ghana Banking Forum in Accra, PwC Ghana’s Country Senior Partner, Vish Ashiagbor, said banks could no longer rely primarily on interest income and must evolve into digitally driven, transaction-focused financial institutions to remain competitive.
Ashiagbor stated, the prolonged low interest rate environment would put pressure on traditional banking models, making it necessary for lenders to identify new sources of growth and revenue.
“At PwC, we’ve identified what we call seven archetypes different approaches banks can adopt,” he said.
He further explained that, institutions choosing to maintain their current business models would need to compete on scale as falling interest rates continue to compress margins.
The PwC Ghana’s Country Senior Partner also noted, banks could also focus on funding large corporate and infrastructure projects, expand into wider customer segments with lower-cost financial products, or adopt other strategies outlined in PwC’s banking framework.
He added that, the proposed models were designed to help banks adapt to changing market conditions and strengthen their long-term resilience.
Ashiagbor also urged financial institutions to define the market segments they want to serve and align their operating models accordingly.
“Each bank needs to think about where it wants to be, which segment of the market it wants to play in, and then design its business model accordingly,” he stated.
The comments come as banks face increasing pressure to diversify revenue streams amid changing economic conditions and a shift towards digital financial services.
By Coffie Mawuedem Noel
