We are developing a credit system in Ghana – Dr. Bawumia | General news

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The government is working on developing a credit system in Ghana with credit scoring by credit reference agencies, Vice President Bawumia revealed.

Key anchors such as the Ghana Card, which provides a unique identity and essential cardholder information including bank accounts, SIM card, SSNIT, NHIS and many more, and the national address system Digital property boards, which provide precise location for the borrower, have already been put in place and the other boards are expected to be in place very soon to enable credit scoring, the VP said.

A credit reference agency is an independent organization that securely holds data, including things like a person’s credit applications, accounts, and financial behavior.

This data is then used to generate a credit score, essentially indicating its creditworthiness and helping to determine the amount, if any, of the premium to be applied to any loan or hire-purchase application.

Speaking at the opening ceremony of the 18th Biennial Youth and Student Connectional Assembly (YASA) of the Methodist Church in Ghana at Nyanyano in the Central Region on Friday, July 15, 2022, Dr Bawumia said that this what makes some countries seem more developed is the systems they have in place to make life easier and simpler, and the Akufo-Addo administration has since its inception worked hard, taking advantage of technology, to infuse digitalization into daily life to accelerate the development of the country.

“We change the economy, we change the system. The reason things seem to work in developed countries is that they have systems and institutions that work. We are the same human beings on every continent, but they have systems that work, and those are the systems we are putting in place in Ghana. Those systems that will ensure that you can’t hide and go commit a crime, or fail to pay a loan, and no one will find you.

“The system we are putting in place in Ghana is very transparent, open, it will reduce corruption, improve efficiency in the delivery of public services, reduce the cost of doing business and reduce bureaucracy,” he stated.

“Most importantly, we are building a credit system in Ghana. By the end of this year, because we have linked all our bank accounts to the Ghana Card national identification number, for the first time in our history, credit reference agencies will be able to undertake a credit rating in Ghana. It would be the first time in our history.

“The credit score would allow each individual to have a unique credit score. You will be able to check your own credit score with your national identity card. If you are someone who does not repay your loans, your credit score will be very low and the banks will not lend you money. If you are someone who pays, you will have a high credit score, you will have a lower interest rate and the banks will lend you money”, he explained.

“We are building this economy, this new system that will help everyone, because the old system is where you had no transparency, but the whole society was paying for this lack of transparency. We have high interest rates, for example.

“But thanks to digitization, we have put in place the necessary systems, so that now higher education students can obtain loans without guarantors. In the near future, depending on your credit score, you will be able to obtain a cheap loan , getting essentials like refrigerators, cars, and other home accessories on credit, and even getting mortgages,” he says to the young people.

Source: Office of Vice President Dr. Mahamudu Bawumia

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