The NPP presidential candidate, Dr. Mahamudu Bawumia, has officially launched “myCreditScore,” a pioneering credit reference and scoring platform designed to enable Ghanaians to demonstrate their creditworthiness transparently. Backed by the Central Bank, this new system offers individuals an objective measure of creditworthiness, improving their chances to access loans and other financial services.
Empowering Responsible Borrowing and Lending
Through the myCreditScore system, individuals who showcase strong credit habits will be rewarded with increased credit access from financial institutions. Speaking at the launch in Accra on November 7, Dr. Bawumia described this initiative as a “momentous occasion” and a major stride toward creating a more dynamic and financially inclusive economy in Ghana.
“This is a significant milestone in our journey towards a financially inclusive and empowered society,” Dr. Bawumia stated, highlighting that myCreditScore represents “yet another chapter in Ghana’s ambitious journey toward financial inclusion.”
Addressing Long-standing Lending Challenges
Dr. Bawumia, who championed this initiative, emphasized that myCreditScore tackles enduring challenges in Ghana’s lending landscape by equipping financial institutions with the tools to accurately assess borrowers’ creditworthiness. “A credit reporting system will provide timely, accurate data on debt profiles and repayment histories, reducing the high risks and costs of lending,” he noted.
Current data shows a 24.3% non-performing loan (NPL) rate in Ghana, which previously peaked at 26.7% this year. Dr. Bawumia believes that myCreditScore will lower these levels by promoting a more secure credit ecosystem, thereby aligning Ghana’s credit standards with international norms.
Promising Pilot Results and Future Prospects
A pilot run of myCreditScore has shown promising results, achieving an NPL ratio of just 1.4%, in stark contrast to Ghana’s average of 20.7% in 2023. “This initiative is expected to reduce default rates, bolster confidence among financial institutions, and expand credit access for individuals and businesses,” Dr. Bawumia shared, expressing optimism for the platform’s positive impact on financial inclusion.
A Milestone Fulfilled After 17 Years
Reflecting on the journey that began in 2007 with the Credit Reporting Act (Act 726), Dr. Bawumia recalled the foundational years when, as Deputy Governor of the Bank of Ghana, he was involved in setting the stage for a credit reporting framework. After a pause due to government changes in 2009, myCreditScore now fulfills a vision for a reliable credit assessment system in Ghana.
A Collaborative Effort with the Private Sector
Dr. Bawumia credited the Bank of Ghana and private sector partners for their pivotal roles in bringing myCreditScore to life. He expressed his gratitude to the Governor and staff of the Bank of Ghana for their support, as well as to private sector contributors who have been instrumental in driving Ghana’s digitalization agenda.
“Together, we’re building a Ghana where financial inclusion is real, dreams are within reach, and every Ghanaian has the chance to achieve financial security and prosperity,” Dr. Bawumia concluded with optimism.
