BoG asks momo operators, fintechs and others to provide customer credit information
The Bank of Ghana has asked telecom companies, fintech companies, mobile money operators, utility providers, among other organizations, to provide information on borrowers’ credit behavior in order to reduce risk associated with loans.
Other organizations required to also provide information about their customers to the Credit Reporting System (CRS) database include retailers; government institutions that provide credit to MSMEs, institutions that provide identification documents, entities that provide goods and services on a postpaid or phased basis, student loan programs provided by private or government agencies and other entities that have relevant data and information consistent with the authorized purposes of the credit bureaus.
According to the directive, this decision will help promote the sharing of information on the credit history of debtors with lenders and other CRS users, as the sharing of credit information is beneficial to both lenders and borrowers because it helps lenders or creditors better assess the credit risk of each borrower or debtor.
The bank says the new directive will also help facilitate the granting and pricing of credit on a differentiated basis, and will further provide credit information on their customers to all credit bureaus approved by the Bank of Ghana within sixty – twelve (72) hours after entering into a credit agreement or facility. This will ensure that credit reports are obtained on potential customers before entering into credit transactions with those customers.
And again, the regulator says the new directive will give the entities listed above the ability to obtain information about their customers’ credit behavior before establishing credit relationships while ensuring that the information they do they provide CRS with information on their clients’ credit behavior to help other creditors make prudent credit decisions.
Since the entry into force of Law 726 in 2007, the Bank of Ghana has authorized three credit bureaus to provide credit assessment services to authorized financial institutions and the category of institutions listed above.
The approved credit bureaus are: XDS Data Ghana Limited; Dun & Bradstreet Credit Bureau Limited and HudsonPrice Data Solutions Limited.
The Bank of Ghana hereby informs the institutions listed above to take action to comply with the provisions of Law 726 by October 31, 2021.