Credit Scoring System Already Exists In Ghana- Bright Simons
The Vice President in charge of research at IMANI Centre for Policy and Education, Bright Simons, has posited that a credit scoring system already exists in Ghana and has more than eight million people captured with 9.4 million references sought from the system annually.
He put this forth in a Tweet as he countered claims that the system doesn’t exist in the country and will be launched in 2024.
“I am still getting messages trying to convince me that a credit scoring system doesn’t exist in Ghana & will be introduced next year through Ghana Card. Let me repeat for emphasis: IT EXISTS. More than 8.7 MILLION Ghanaians are NOW captured & ~9.4m checks are done yearly.”
He further argued that the country has two credit scoring agencies, namely XDS and D&B, who use the acceptable format in deducing the credit score for borrowers.
“Someone protested that what we have in Ghana isn’t ‘credit scoring’. Also INCORRECT. ‘Credit scoring’ is simply taking the data in the credit report of the borrower & reducing it to a number using a model. The 2 credit agencies in Gh – XDS & D&B – have models for this.”
“Lastly, know that the creditor, such as YOUR bank or a telco, may have their own individual credit scoring model. Since they may know you very well, they will only use the credit score from the credit agency as just 1 input among others to decide on the credit risk of lending.”
Background
The conversation around a credit scoring system was generated after Vice President Mahamudu Bawumia announced the launch of a credit scoring system anchored on the Ghana Card next year.
The system aimed at providing credible credit history of individuals will sanitize the financial sector, clear the deficit of trust which has made the cost of doing business expensive and promote discipline, he asserted.
“Ghana next year will be introducing a credit scoring system for individuals. Every individual will have a credit score. Right now, our credit scoring system does not exist so we are seen as risky,” he said during the 57th Congregation of the Kwame Nkrumah University of Science and Technology on Friday, November 24, 2023.
