BoG, EOCO crack down on 400 illegal online lenders

The Bank of Ghana (BoG), in collaboration with the Economic and Organised Crime Office (EOCO) and the Cyber Security Authority, has uncovered and shut down over 400 illegal online lending operators as part of efforts to sanitise the country’s growing digital finance space.

The crackdown formed part of a broader initiative to strengthen customer protection, promote responsible lending and position the country as a regional hub for responsible digital finance.

The Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, revealed this at the 2025 Fintech Stakeholder Forum in Accra last Wednesday (October 15).

It was held on the theme “Harnessing Ghana’s Fintech Potential: A Regulatory Framework for Digital Credits and Digital Assets.”

MobileMoney Limited, a subsidiary of MTN Ghana, organised the annual forum in Accra, bringing together key players from the financial services, regulatory and technology sectors to discuss the future of digital finance and the Bank of Ghana Digital Credit and Asset Guidelines.

Among the stakeholders were regulators, fintech operators, think tanks, academics   and private sector leaders.

Concerns

Mrs Asante-Asiedu said the bank’s investigations uncovered several unlicensed digital lenders operating through mobile applications and online platforms, exploiting consumers with unfair lending practices.

She explained that these illegal operators charged excessive interest rates, violated data privacy laws and harassed customers during debt collection.

“These entities operated outside our regulatory framework, preying on vulnerable individuals. Their practices undermine consumer confidence and threaten the integrity of the financial system,” she stated.

Mrs Asante-Asiedu added that the central bank’s action formed part of a broader campaign to restore discipline, transparency and ethical standards in the digital finance industry.

Ethical conduct

Mrs Asante-Asiedu disclosed that the BoG’s directive on digital credit service provision, which took effect last month, mandated all digital credit providers to obtain licensing and comply with ethical lending standards.

The directive, she said, required lenders to disclose all loan terms, including interest rates, repayment periods and fees in clear language before disbursement.

It also outlined governance and consumer protection rules to ensure fair treatment of borrowers.

Mrs Asante-Asiedu said the policy was designed to promote responsible lending and protect consumers while allowing innovation to thrive.

Cryptocurrency, digital assets

She revealed that the bank, in partnership with the Securities and Exchange Commission (SEC) and the Financial Intelligence Centre (FIC), had finalised a Virtual Assets Service Providers Bill to guide the operations of cryptocurrency exchanges and other virtual asset platforms in the country

Highlighting the bank’s digital transformation efforts, Mrs Asante-Asiedu said the central bank was deploying Supervisory Technology (SupTech) and Regulatory Technology (RegTech) tools to strengthen oversight and enhance efficiency in financial supervision.

These tools, she said, would allow the bank to monitor financial risks and compliance issues in real time, improve data analysis and ensure that innovation in the fintech space was matched by strong regulatory systems.

“Our goal is to build a financial system that is modern yet moral, dynamic yet disciplined, and one that truly serves the people,” she said.

Financial literacy

Mrs Asante-Asiedu also stressed the need for financial literacy to safeguard consumers against exploitation in the digital lending market.

She said many borrowers did not understand how compounded interest worked or how their data was being used by online lenders.

“Financial literacy is the consumer’s shield in this new digital economy. We will intensify education campaigns to ensure that users know their rights, engage only with licensed platforms and make informed borrowing decisions”, she said.

Regulatory frameworks

The Chief Executive Officer (CEO) of MobileMoney Limited, Shaibu Haruna, commended the central bank for its decisive action and for developing a structured regulatory environment that balanced innovation with protection.

He said the Fintech Stakeholder Forum provided a platform for collaboration among policymakers, regulators and industry players to discuss the future of financial technology in the country.

“At MobileMoney Limited, we believe meaningful progress happens when we engage, listen and build together.

This framework helps deepen inclusion while protecting consumers,” he stated.

Responsible borrowing

Mr Haruna welcomed the Bank of Ghana’s upcoming credit scoring system, which was expected to be rolled out next month, saying it would promote responsible borrowing and help financial institutions assess customers more accurately.

“To bring down the cost of credit, we must collectively remove habitual defaulters from the system. With technology and collaboration, we can strengthen repayment culture and promote responsible lending,” he said.

He said the digital credit framework and scoring system would protect lenders from unnecessary risk and ensure fairer interest rates for compliant borrowers.

Mr Haruna said MobileMoney Limited remained committed to working with the BoG and other partners to improve transparency, compliance and consumer confidence while ensuring that the digital lending market remained safe and sustainable.