Financial institutions conducted 29.5 million credit checks in 2024 – more than double the previous year’s total as digital loans and data-driven lending transformed Ghana’s financial landscape.
The Bank of Ghana’s latest Credit Reporting Activity Report reveals a 114.6% surge in enquiries, fueled by mobile money platforms and app-based microcredit services now accounting for nearly half of all searches.
Monthly credit checks averaged 2.46 million, with banks dominating activity at 85% of enquiries. The spike correlates with a 190.3% jump in monthly loan records submitted to credit bureaus, hitting 61.1 million entries. “This expansion was mainly due to credit growth to the private sector,” the central bank noted, linking it to real economic activity and improved transparency from credit referencing.
Notably, 98.3% of searches were for loan assessments, with “hit rates” (searches yielding usable borrower data) rising to 76%. This reflects deeper database coverage, partly from digital lenders reporting previously excluded low-income borrowers. Yet retail dominance continues: individual borrowers triggered 55.2% of checks, while corporate enquiries plummeted 78% despite overall private credit growing 24% – suggesting lending concentration among established firms.
The boom carries risks. Non-performing loans edged up to 21.79%, though the BoG expects new credit scoring systems to mitigate this. A concerning gap persists in public awareness: self-enquiries by individuals checking their own reports fell 33% to just 1,372. “Stronger consumer education is needed,” the report implies, as Ghana balances expanded access with responsible lending.
Source: newsghana.com.gh
