Ghana’s Digital Lending Boom Doubles Credit Checks
The financial landscape in Ghana is witnessing a significant transformation, with credit inquiries experiencing an unprecedented surge in 2024. This dramatic increase is largely attributed to the rapid expansion of digital lending platforms and a more intensive utilization of credit data by financial institutions across the country. The data underscores a growing reliance on technology to assess creditworthiness in a fast-evolving digital economy, reflecting the dynamism of the African tech sector.
# The Rise of Digital Loans and Data Utilization
According to the comprehensive Credit Reporting Activity Report for 2024, published by the Bank of Ghana (BoG), the total number of credit searches conducted by financial sector entities and authorized users reached an astonishing 29.5 million during the year. This represents a substantial 114.6 percent increase from the 13.7 million searches recorded in 2023, effectively more than doubling the volume of credit checks. This remarkable expansion was predominantly fueled by the proliferation of digital loans, which now constitute nearly half of all credit inquiries. Specifically, 44.4 percent of the total searches, amounting to 13.1 million, were directly linked to mobile-based or other digital lending products. This trend highlights the pervasive adoption of mobile money platforms and app-driven microcredit services throughout Ghana, making credit more accessible than ever before. On average, the financial sector processed approximately 2.46 million credit searches per month in 2024, a notable rise from the 2.11 million average observed in the previous year. This indicates a sustained and intensifying focus on credit assessment.
This surge in credit checks reflects a dual trend: the immense growth in digital financial services reaching a wider populace, and financial institutions actively leveraging sophisticated credit reporting systems to manage risk more effectively in a high-volume, digital lending environment. As more Ghanaians turn to mobile phones for quick and convenient access to credit, the demand for robust credit assessment mechanisms will undoubtedly continue to grow, solidifying credit data as a critical asset for both lenders and consumers navigating the modern financial ecosystem.
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