Bank of Ghana report reveals Ghana has no Individual Credit Scores

Contrary to misleading claims that personal credit scoring system is currently being practised in Ghana already, the Bank of Ghana has confirmed that is not the case, explaining what exists is rather a credit-reporting system being managed by few credit bureaus.

The Bank of Ghana’s 2022 Credit Reporting Activity Credit states the reason for the plan introduction of the credit-scoring system and how the Central Bank held discussions with the credit bureaus who issue credit reports and not credit score.

"The Bank of Ghana, in collaboration with the credit bureaus, initiated discussions on the process leading to the introduction of credit scoring to complement credit reports provided by credit bureaus," stated the report.

"This development is on the back of the introduction of the Ghana Card that presents a unique identifier for credit information subjects. The Bank of Ghana in the jing year, will ensure that financial institutions update existing credit information with the new Ghana Card information to facilitate the implementation of the credit scoring regime."

The Bank of Ghana document brings more clarity to the issue and vindicates Vice President Dr. Mahamudu Bawumia's assertion that there is no credit scoring system in Ghana presently.

Speaking to a congregation of KNUST in Kumasi last week, Dr. Bawumia announced plans to role out personalized credit scoring system in Ghana next year with the Ghana Card as a catalyst for the system, which he stressed, would help distinguish between high and low risk borrowers.

Following Dr. Bawumia's announcement, Vice President of IMANI, Bright Simons questioned Bawumia's statement, claiming the Vice President is wrong because there is currently no credit scoring system in Ghana.

Many analysts have faulted Bright Simons claims, saying he misunderstands the difference between credit report by the credit bureaus and credit scoring for individuals.

Economist Dr. Theo Acheamponh, in a post on X (formerly twitter) yesterday, backed the decision to start a new credit scoring system in Ghana, stating the new system does not exist in Ghana just as Dr. Bawumia said.

Dr. Theo Acheampong further explained in detail the difference between credit report and credit scoring.

He said; "It is important to note that the products and services offered by the Credit Bureaus are not individual credit scoring."

"In other words, the current data provided by the credit bureaus are amalgamated reports comprising different data points such as personal details, credit account summary, address history, guarantor details and telephone history."

He continued; "The companies, for one reason or another, are unable to combine this information into a COMPOSITE CREDIT SCORE such as offered by the likes of companies like Experian and TransUnion here in the UK where I am based, and which can allow the pricing of individual financial products and services."

"In terms of evidence, I have attached my Experian score, which currently sits at 961 out of 999 and is rated excellent. With this single number, I can access various products, including credit cards, loans, insurance, and other financial products", he added.

Read the Bank of Ghana report below: