Government has announced efforts to develop a credit system in the country, with credit scoring by the Credit Reference Agencies for the first time by end of the year, with linking of the Ghana Card to bank accounts.
Vice President Dr. Mahamudu Bawumia said key anchors such as the Ghana Card which provide a unique identity and essential information about the bearer – including bank accounts, SIM card, SSNIT, NHIS among others, and the National Digital Property Address System providing a definite location for the borrower – have already been put in place.
He however added that there are still a few things which need to be done to enable credit scoring.
He said: “Credit scoring will allow every individual to have a unique credit score. You will be able to check your own credit score with your national ID. If you are someone who doesn’t pay back loans, you will have a very low credit score and banks won’t lend you money. If you are someone who pays you will have a high credit score, you will have a lower interest rate and banks will lend you money,” he explained.
“We are building this economy. This new system will help everybody because the old system is one wherein you don’t have transparency, and the whole society is paying for this lack of transparency. We have high interest rates, for instance.
“In the near future, depending on your credit score, you can get a cheap loan, get essential items like fridges, cars and other household accessories on credit, and even secure mortgages,” he told the youth.
Dr. Bawumia was speaking at the opening ceremony of the 18th Biennial Connexional Youth and Students Assembly (YASA) of the Methodist Church of Ghana at Nyanyano in the Central Region.
He said what makes some countries appear more developed is the systems they have put in place to ensure life becomes easier and simpler.
Against this background, he stated that government has worked hard, leveraging technology to infuse digitisation into everyday life in order to accelerate the country’s development.
“We are changing the economy; we are changing the system. The reason why things seem to work in the developed countries is because they have systems and institutions that work. We are the same human beings across all the continents but they have systems that are working, and it is those systems which we are putting into place in Ghana. Those systems will make sure that you cannot hide and go to commit a crime, or not pay a loan and nobody will find you.
“The system we are putting together in Ghana is very transparent and open. It will reduce corruption, enhance efficiency in the delivery of public services, reduce the cost of doing business, and it will reduce bureaucracy,” he stated.