As part of Government’s Citizens App platform that will be launched in the first quarter of 2024, a national credit scoring system will be implemented to close the yawning gaps and deficiencies of the existing credit reference bureau which have prevented them from being able to undertake credit scoring for over 80% of adults in Ghana. How can we have a credit scoring system that excludes over 80% of eligible borrowers? The okada rider, the Kayayei, the shoe shine boy, the peasant farmer, and the maid who may not have bank accounts should be able to have their credit scores to enable them access credit. They should not be excluded.

It should be noted that:

1. The existing credit reference systems have bank-led operating models. Ghana’s financial sector has however now expanded beyond traditional banks. There are now mobile money issuers, payment service providers, card issuers, and several fintechs who are driving the space. Ghana now has a predominantly mobile money-led financial sector thus a new system is required to open up credit opportunities for the over 22 million active mobile money users.

The new credit scoring system will allow all these players to access and contribute to an individual’s credit history. This will spur further innovation and create opportunities that will modernize and grow our economy.

2. The upcoming national credit scoring system is backed by data from an individual Ghana card and will utilize a much broader range of data sources, including demographic data, financial transactions, utility payments, employment records, and other asset ownership data. This comprehensive data coverage provides a more accurate and holistic assessment of an individual's creditworthiness, particularly for those with limited or no credit history.

3. By incorporating data from these comprehensive sources, the new credit scoring system can effectively reach individuals who are currently excluded from traditional credit reporting systems. This increased financial inclusion will enable the mass of Ghana’s population to access more formal financial services, such as loans, mortgages, and insurance services, which can significantly improve their economic opportunities.

4. The comprehensive data insights that will be provided by the new credit scoring system will enable lenders of all kinds (not just banks) but also employers, landlords, car dealers, insurance companies, telcos, mobile handset dealers, entrepreneurs and the like to make more informed risk assessments to spur an entirely new era of lending practices that underpins every modern economy of today’s world.

5. In the advanced countries where credit scoring takes place, everybody knows or can find out their credit score at anytime. If you are in Ghana where credit reference bureau operate, do you know what your credit score is? Can you find out your credit score? The answer is “no” to both questions. With the new national credit scoring system, everyone with a Ghanacard should be able to find out their credit score online. It is a new credit scoring system.

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