Dr. Mahamudu Bawumia
In a recent address at the KNUST Congregation, Vice President Dr. Mahamudu Bawumia revealed that Ghana’s biometric national identity card, known as the Ghana Card, will serve as the cornerstone of an upcoming credit-scoring system.
The innovative system, set to be launched next year, aims to distinguish between high and low-risk borrowers, revolutionizing the lending landscape in the country.
During his speech, Dr. Bawumia expressed his enthusiasm for the forthcoming credit-scoring system, which will leverage the comprehensive information stored within the Ghana Card database. The biometric national identity card, introduced in 2017, contains essential personal details and biometric data, including fingerprints and facial recognition, making it a reliable and secure source of information.
The Vice President emphasized that the credit-scoring system’s primary objective is to foster responsible borrowing and lending practices while promoting financial inclusivity. By evaluating the creditworthiness of individuals and businesses, lenders will be empowered to make informed decisions when it comes to extending loans and other financial services.
“Ghana, early next year, will be introducing a credit-scoring system for individuals and businesses,” stated Dr. Bawumia. “This system will be built on the foundation of the Ghana Card, our biometric national identity card, which contains comprehensive information about citizens and residents of Ghana.”
The introduction of the credit-scoring system is expected to enhance access to credit facilities for individuals and businesses alike. Moreover, it will encourage responsible financial behavior while discouraging risky borrowing practices.
Dr. Bawumia underscored the importance of the credit-scoring system, which will assess various factors such as payment history, debt levels, and overall financial conduct to assign credit scores to individuals and businesses. These scores will enable lenders to accurately determine the credit risk associated with potential borrowers.
“The credit-scoring system will take into account various factors to determine the creditworthiness of individuals and businesses,” explained Dr. Bawumia. “This will provide lenders with valuable insights to make more accurate lending decisions and mitigate risks.”
The Vice President also highlighted the credit-scoring system’s alignment with the government’s agenda to digitize Ghana’s economy. This initiative forms part of broader efforts to modernize the financial sector and drive financial technology innovation throughout the country.
To ensure a smooth and efficient implementation of the credit-scoring system, the government plans to collaborate closely with financial institutions, credit bureaus, and other relevant stakeholders.
Dr. Bawumia stressed the importance of data privacy and security, assuring citizens that measures will be in place to safeguard their personal information.
Industry experts and stakeholders have responded positively to the announcement of the credit-scoring system. Many believe that it will contribute to a more robust and inclusive financial ecosystem in Ghana, benefiting both lenders and borrowers.
As the nation prepares for the introduction of the credit-scoring system in the coming year, individuals and businesses are encouraged to review and update their information within the Ghana Card database.
Ensuring accurate and up-to-date details will facilitate a seamless transition to the new system and ensure fair and equitable access to credit facilities for all eligible borrowers.
He said “This system will be built on the foundation of the Ghana Card, our biometric national identity card, which contains comprehensive information about citizens and residents of Ghana.”
“The introduction of a credit-scoring system will provide individuals and businesses with greater access to credit facilities,” Dr. Bawumia explained. “It will also encourage responsible financial behavior and discourage risky borrowing practices.”
The Ghana Card, introduced in 2017, is a secure identification card that includes biometric data such as fingerprints and facial recognition. It serves as proof of identity, citizenship, and residence for Ghanaians and foreign residents in the country. The card contains personal information such as name, date of birth, address, and other relevant details.
According to Dr. Bawumia, the credit-scoring system will leverage the existing data stored in the Ghana Card database to assess individuals’ creditworthiness. By analyzing factors such as payment history, debt levels, and financial behavior, the system will assign a credit score to each individual, indicating their credit risk.
“The credit-scoring system will take into account various factors to determine the creditworthiness of individuals and businesses,” said Dr. Bawumia. “This will provide lenders with valuable insights to make more accurate lending decisions and mitigate risks.”
The Vice President also highlighted that the implementation of the credit-scoring system aligns with the government’s agenda to digitize various sectors of the economy. It is part of broader efforts to modernize the financial sector and promote financial technology innovation in Ghana.
The government will work closely with financial institutions, credit bureaus, and relevant stakeholders to ensure a smooth and efficient implementation of the credit-scoring system.
Dr. Bawumia emphasized the importance of data privacy and security in the process, assuring that measures will be in place to protect individuals’ personal information.
The announcement of the credit-scoring system has been met with positive responses from industry experts and stakeholders. Many believe that it will contribute to a more robust and inclusive financial ecosystem in Ghana, benefiting both lenders and borrowers.
By Vincent Kubi