Ghana’s leading Credit Bureau, XDSData has vindicated the Vice President, Dr. Mahamudu Bawumia on the status of individual credit scoring system in Ghana.
Dr. Bawumia recently announced government’s decision to introduce a personalised credit-scoring system, which will be anchored by national biometric identity card (Ghanacard), next year.
The Vice President’s announcement, was however, met with opposition, notably by President of think tank, Imani and his Vice Bright Simons, who claimed personalised credit scoring system existed in Ghana, inspite of the Bank of Ghana’s 2022 Credit Reporting Activity, stating clearly that personal scoring was yet to be introduced in Ghana.
Now, one of the agencies referenced by as producing credit scores for individuals, XDSData, has issued a statement denying the claims that it produces credit scores.
In the statement, issued on Tuesday December 5, 2023, XDSData, said inspite of its capabilities, it has not been able to produced credit score because of the absence of a unique identifier.
The denial by the agency Franklin Cudjoe and Bright Simons claimed produces credit score, coupled with the Bank of Ghana’s 2022 Credit Reporting Activity, have effectively ended the debate on the status of credit scoring in Ghana.
Below is the full press release:
PRESS RELEASE
STATUS OF CREDIT SCORES IN GHANA
5th December 2023
XDSData Ghana Limited, Ghana’s leading Credit Bureau wishes to inform the public about the bureau’s capability of producing individual credit scores as stated in the document Credit Reporting Activity, Annual Report 2022 published by the Bank of Ghana.
Despite our capabilities, the bureau has not produced scores. This is because of the lack of a unique identifier. Currently, facilities are accessed by individuals using different kinds of identification which makes it difficult for the bureau to be 100 percent sure of capturing a credit subject’s total exposure. However, XDSData Ghana Limited produces credit information just like any International Credit Bureau, adequate for lenders to be able to make informed credit decisions.
The mandatory use of the Ghana card from the 1st of July, 2022 for all financial transactions has seen Data Providers submitting Ghana Card Information to the bureau. Credit scoring models require unique identifiers to fully map information. The penetration of the Ghana Card information supplied to the bureau is progressing at a slow pace. In collaboration with the Bank of Ghana, we have been tracking the Ghana Card penetration which stands at 35 percent as at the end of the last quarter of 2023. This is based on 11,067,161 unique active loan customers submitted by Data Providers.
In addition to continuous research into the use of alternative information within the credit score models, we anticipate releasing the individual credit scores when the Ghana Card penetration rate reaches the 90th percentile; hopefully before the end of year 2024.
The continued active participation and support from Bank of Ghana, ensuring credit bureaus get adequate data on Ghana Cards from Data Providers is paramount. This will ensure that all aspects of the credit ecosystem are included in scoring calculations.
XDSData Ghana Limited has pioneered credit referencing over the years and thus will endeavor to make credit scoring a reality in Ghana and trusted abroad.
