Dr. Ernest Addison
XDSData Ghana Limited, one of the leading credit bureau in Ghana, has denied claims by some individuals that it has been producing individual credit scores in the country before Bank of Ghana (BoG) intention to implement the policy.
According to the credit bureau, it has the capability to produce individual credit scores, as indicated in the Credit Reporting Activity Annual Report 2022 published by the Bank of Ghana.
However, XDSData Ghana Limited has not yet commenced the production of credit scores due to the lack of a unique identifier. Currently, individuals in Ghana use various forms of identification when accessing financial facilities, making it challenging for the credit bureau to accurately capture an individual’s complete credit history.
In a press release issued Tuesday, December 5, 2023, signed by George K. Ahiafor, Managing Director, to update the public on the status of credit scores in the country, XDSData Ghana Limited said it nevertheless, continues to provide comprehensive credit information, similar to other international credit bureaus, enabling lenders to make informed credit decisions.
The introduction of the Ghana Card, which became mandatory for all financial transactions from July 1, 2022, has led to data providers submitting Ghana Card information to XDSData Ghana Limited.
Credit scoring models rely on unique identifiers to accurately evaluate creditworthiness. The inclusion of Ghana Card information in the credit bureau’s database, however, has been progressing slowly.
The latest data indicates that the penetration of Ghana Card information stands at 35 per cent as of the end of the last quarter of 2023, based on information submitted by data providers on 11,067,161 unique active loan customers.
XDSData Ghana Limited, in collaboration with the Bank of Ghana, said they are closely monitoring the penetration rate of Ghana Card information. The credit bureau plans to release individual credit scores once the Ghana Card penetration rate reaches the 90th percentile, which is projected to occur before the end of 2024.
The active participation and support from the Bank of Ghana, in ensuring data providers consistently supply Ghana Card information, are crucial for the inclusion of all aspects of the credit ecosystem in credit scoring calculations.
XDSData Ghana Limited has been at the forefront of credit referencing in Ghana and is committed to making credit scoring a reality that can be trusted both locally and internationally.
By Vincent Kubi