myCreditScore unveiled as 3rd credit reference bureau

A platform (app) designed to transform credit referencing in the country has been unveiled at a ceremony in Accra.

Known as “myCreditScore,” the initiative, which has been piloted for over two years, was expected to redefine credit referencing in the country.

Having met the licensing requirements under the Credit Reporting Act, 2007 (Act 726), myCreditScore has been licensed by the Bank of Ghana (BoG) to operate as the third service credit bureau in the country.

Described as the gateway to financial opportunities, patrons are expected to start from the borrowers’ portal by inputting www.mycreditscore.com.gh to access the platform.

The Vice-President, Dr Mahamudu Bawumia, who launched it, said the credit score was much like a financial report card which quantified loan payment history, debt levels and credit behaviour into a single number, making it easier for banks and other lenders to access one’s financial reliability.

To young individuals, he said, myCreditScore would contribute to a more resilient and inclusive financial system, lower rate, non-performing loans (NPLs) while banks and financial institutions would gain confidence in lending, thereby forcing a cycle of growth and trust.

Furthermore, he said as Ghanaians embraced financial responsibility, “we move towards a society where fair access to credit becomes a norm, empowering individuals, families and businesses”.

Dr Bawumia said with such a system that was open, reliable and fair, the country was setting a system where financial empowerment was within everyone’s reach.

Significant milestone

He described the initiative as a significant milestone in the journey of Ghana towards a financially inclusive and empowered society, saying “when I was pushing for the implementation of these projects many people said I have abandoned economics to pursue digitalisation. They did not understand that I was using digitalisation to solve economic problems.”

Dr Bawumia, who was visibly excited about the achievement, said since 2020, the accelerated digitalisation of government services had transformed how citizens secured and efficiently interacted with public institutions, coupled with the widespread issuance of the Ghana Card, the integration of national databases and the remarkable expansion of financial inclusion, the country was now fully prepared to implement a comprehensive credit scoring system.

He said the credit score system, a Ghanaian full-blown private sector initiative, would enhance access to credit, strengthen trust in the financial system and serve as a critical tool that would transform Ghanaian access to credit and financing.

“The initiative comes at a crucial time in Ghana’s financial sector. Ghana’s non-performing loan (NPL) rate stands about 24.3 per cent which is quite high. Such high NPL levels reflect the challenges within our financial ecosystem where the lack of standardised transparent credit scoring system has contributed to elevated risks for lenders and limited financial inclusion,” he stated.

Notably, Dr Bawumia said results from the myCreditScore pilot demonstrated an improvement, with an end year ratio of less than four per cent which was a remarkable contrast to the national average.

By enabling a fairer and more consistent evaluation of credit worthiness, he said, myCreditScore was expected to reduce loss significantly, bringing confidence among financial institutions and expanding access to credit to individuals and businesses alike.
 

BoG

The Head of Banking Supervision of BoG, Osei Gyasi, said the central bank believed there was the need for banks to effectively manage credit risks and it was for that reason that credit bureaux had been licensed to support their risk management function.

He stated that a credible credit information system was indispensable in the development of a modern credit market and, therefore, the BoG remained committed to efforts geared towards establishing credit bureaux.

He said the addition of credit scoring helped to enhance the risk management framework that banks and foreign direct investments (FDIs) leveraged to minimise NPLs and credit losses.

Mr Gyasi, therefore, encouraged credit reference bureaux to be innovative to deploy solutions to facilitate data solution.

He gave an assurance that the BoG would continue to create the atmosphere to support all credit reference bureaux in developing the credit market in the country.

NPLs

The Board Chairman of MyCreditScore, Augustine Agyei, said looking at the credit landscape in the country, it was impossible to completely ignore the issue of NPLs.

He described the system as the future of financial empowerment and digital transformation in the country.

Mr Agyei said they were optimistic about the system in the country as the pilot programme had witnessed encouraging results.

“Today, we are seeing about 40,700 credits extended, totalling GH¢637,799 to well over 4,000 borrowers. Our default rate stands at 2.51 per cent,” he said.