Searches and enquiries made by monetary establishments and authorised customers on the databases of credit score reference bureaus noticed a major bounce in 2024, in line with the Financial institution of Ghana’s newly launched Credit score Reporting Exercise report.
The whole variety of credit score data enquiries reached practically 30 million in 2024, greater than double the 13 million recorded in 2023.
The report attributes this surge to rising reliance on credit score histories for functions corresponding to credit score software value determinations, mortgage restoration efforts, and Know Your Buyer (KYC) checks.
On common, 2,458,037 enquiries have been made month-to-month in 2024, marking a 16.24% enhance over the 2023 month-to-month common of two,114,636.
This regular development alerts elevated adoption of credit score reporting as a core element of credit score administration throughout numerous establishments.
Based on the Financial institution of Ghana, all regulated monetary establishments, together with banks, rural and neighborhood banks, financial savings and loans corporations, finance homes, and microcredit establishments, are mandated to each submit credit score knowledge and utilise credit score bureau providers.
Notably, 76% of the searches made in 2024 returned a “hit,” which means some data, both demographic, monetary, or each, was accessible on the topic. This was an enchancment over the 72% hit price recorded in 2023.
Borrower Classes and Information Submissions
By way of borrower kind, 55% of enquiries have been made on particular person debtors, whereas 44% centered on digital mortgage clients, indicating the rising position of fintechs within the credit score panorama.
The amount of mortgage data submitted to credit score bureaus additionally soared. On common, 61 million mortgage data have been submitted month-to-month in 2024, up from 21 million in 2023, a 190.33% enhance.
These data included new loans, standing updates on current loans, and digital mortgage knowledge.
Of the entire submissions in 2024, 99.7% pertained to particular person debtors, largely as a result of large development in digital lending.
Who’s Main the Enquiries?
Business banks have been essentially the most energetic customers of credit score bureau providers, conducting 13,522,171 searches in 2024, representing 84.93% of all enquiries. This marks a major enhance from 77.83% in 2023.
Microfinance and microcredit establishments accounted for 8.82% of enquiries in 2024, a drop from 11.0% the earlier yr.
Strengthening the System
The Financial institution of Ghana famous that the credit score reporting system made important strides in 2024, with enhancements in knowledge high quality, regulatory compliance, and stakeholder engagement.
The central financial institution additionally highlighted a discount in dud cheque incidents, larger utilization of credit score reviews, and improved public consciousness as indicators of a extra sturdy credit score data ecosystem.
The Financial institution reaffirmed its dedication to strengthening the credit score reporting infrastructure via enforcement, public training, and coverage collaboration—all aimed toward constructing a clear, inclusive, and resilient credit score surroundings to help sustainable financial development.
To make sure full compliance, the Financial institution of Ghana stated it is going to proceed to observe the actions of knowledge suppliers carefully.
New Developments within the Sector
The Financial institution of Ghana has accepted credit score bureaus to launch credit score scoring providers, following enhancements in knowledge high quality and methodology.
MyCredit Rating Restricted has already rolled out its credit score scoring product, whereas Dun & Bradstreet Credit score Bureau Restricted has additionally launched its personal resolution, signalling the business’s push towards extra superior, revolutionary credit score providers.
In a serious step ahead, the Financial institution of Ghana additionally accepted a cross-border credit score referencing settlement between XDS Information Ghana Restricted and Nova Credit score Inc., USA, permitting for the switch of credit score reviews to international lenders, paving the best way for improved credit score entry for Ghanaians overseas.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially characterize the views or coverage of Multimedia Group Restricted.
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