The Vice President has stated it was stunning that some individuals disagreed together with his remark that Ghana doesn’t have an individualized credit score scoring system as a result of the Bank of Ghana (BoG) had even acknowledged that.
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Dr Bawumia stated it was true that Ghana lacked an individualized credit score scoring system.
Speaking on the twentieth version of the Ghana Club 100 Awards on Saturday, December 9 whereas highlighting the advantages of the digitization economy, he stated “Digitisation of the economic system goes to proceed The different day I used to be speaking about one of many issues that we’ve got in Ghana being the dearth of an efficient credit score system as in comparison with what we see in many of the superior nations.
“In Ghana once you obtain pay cheque that’s actually what you attempt to depend on for the remainder of the month however in lots of different jurisdictions the credit score programs work successfully to extend your consumption prospects. So I used to be making the assertion that one of many issues that we do not have at present in Ghana is a credit score scoring system that the credit score reference businesses will usually do.
“That assertion that I made was, in fact, a truism, surprisingly some wished to disagree with that assertion and even disagreed with the regulator, the central bank which was saying we do not have that system once more, the Individlaised Credit scoring system.
“Now with the cooperation of the central bank, we are very close next year to introducing an individualized credit scoring system in Ghan which will allow us to differentiate between risks between different individualized .that was in the sense that is aid that individualized credit scoring system will have Ghana Card as an anchors because it is the unique identifier for everybody, which will then allow credit to be more accessible.”
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Dr. Bawumia earlier introduced on the 57th congregation of the Kwame Nkrumah University of Science and Technology that Ghana would introduce a credit score scoring system subsequent yr to permit Ghanaians entry to non-public loans and in addition assist monetary establishments management the allocation of dangers and prices with their shoppers.
It was his view that the credit score system would guarantee self-discipline within the fee of loans.
“Ghana early subsequent yr will likely be introducing a credit score scoring system for people. Every particular person may have a credit score rating. Right now, our credit score scoring system doesn’t exist.
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“So, everybody is seen as risky and the interest rates are high. But we are going to go into individualized credit scores. So, if you don’t pay your loan, you will have no credit score and you will have a problem when you go for a loan. But if you are diligent in paying your loans you get your high credit score and you are likely to get lower interest rates. This will bring more discipline,” he stated.
Dr Bawumia’s coverage proposal acquired flak from some analysts together with a professor on the University of Ghana Kobby Mensah who solid doubt on the power to roll out such a coverage.
In a submit shared on X on November 28, 2023, Prof Mensah requested why the Ghana Card shouldn’t be getting used to accumulate automobiles as a result of there are garages in Ghana already.
“Are we not in Ghana? Are there no garages in Ghana? If the solutions to those questions are sure, then the case is straightforward.
“Take your Ghana card to CFAO to pick up a Mercedes and let’s prove the theory,” he wrote.
Also, a Vice President of Imani Africa, Bright Simons informed the Dr Bawumia’s spokesperson Dr Gideon Boako that the problems that existed in credit-scoring weren’t distinctive to Ghana and couldn’t be solved by Ghana Card.
This was after Dr Boako stated that the brand new credit score scoring system being proposed by the flagbearer of the New Patriotic Party (NPP) Dr Mahamudu Bawumia would spur additional innovation and create alternatives that may modernize and develop the economic system.
Dr Boako defined that the upcoming nationwide credit score scoring system is backed by knowledge from a person Ghana card and can make the most of a much wider vary of knowledge sources, together with demographic knowledge, monetary transactions, utility funds, employment data, and different asset possession knowledge.
This complete knowledge protection, he stated, supplies a extra correct and holistic evaluation of a person’s creditworthiness, notably for these with restricted or no credit score historical past.