The Vice President, Dr. Mahamudu Bawumia, has launched the National Credit Scoring System, branded as MyCreditScore in a bid to boost financial inclusion and advance the formalization of Ghana’s economy.

The government said the initiative is to transform credit access for Ghanaians providing a streamlined, cash-free way to make purchases and fostering a culture of financial responsibility.

Vice President Dr. Bawumia said the initiative is expected to help reduce the high rate of Non-Performing Loans (NPLs) that currently affect financial institutions in the country.

Dr. Bawumia said MyCreditScore aligns with the government’s broader vision of a digitized and inclusive economy, underscoring that the credit scoring initiative represents an important milestone in Ghana’s journey toward digital transformation and economic resilience.

"It is a significant milestone in Ghana’s journey toward a financially inclusive and empowered society," Dr. Bawumia said, adding that the launch of myCreditScore, also represents "yet another chapter in the nation’s ambitious journey toward financial inclusion."

"The lack of a credit information system increases the risks of lending, and causes financial institutions to provide less credit. A credit reporting system in Ghana would provide timely, accurate, and up to date information on the debt profile and repayment history of borrowers and would lead to a number of benefits, " Dr. Bawumia said.

"This initiative comes at a crucial time for Ghana’s financial sector. Recent data from CEIC Data reports that as of August 2024, Ghana’s non-performing loan (NPL) rate stands at a troubling 24.3%, with an unprecedented peak of 26.7% earlier this year."

"Such high NPL levels reflect challenges within our financial ecosystem, where the lack of a standardized, transparent credit scoring system has contributed to elevated risks for lenders and limited financial inclusion for borrowers."

 "The introduction of myCreditScore represents a pivotal step toward addressing these challenges, aligning Ghana’s credit ecosystem with international standards and promoting a culture of responsible borrowing," he explained.

The platform which has been developed in collaboration with private sector partners, introduces a credit scoring model designed to make it easier for citizens to secure loans and financing.

It evaluates individuals' creditworthiness based on payment history and financial habits and offers a more comprehensive approach to credit access.

This will also allow Ghanaians to make purchases and engage in financial transactions without requiring physical cash.

This credit-based purchasing model is expected to ease the financial burden on consumers and enable them to build positive credit histories.

MyCreditScore will be accessible to all Ghanaians, with financial institutions, lenders, and merchants encouraged to integrate MyCreditScore into their operations, making credit access more seamless across multiple sectors.

SSD/MA

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