Ghana has witnessed an unprecedented explosion in credit enquiries in the financial sector over the past year, with the numbers more than doubling in 2024. The rapid digitisation of lending, coupled with an improved emphasis on credit data by financial institutions, has led to this remarkable surge in inquiries.
The Bank of Ghana’s (BoG) recent Credit Reporting Activity Report 2024 reveals that a total of 29.5 million credit searches were conducted by financial institutions and authorised users during the year.
| Category | 2024 Number | 2023 Number | Percentage Increase |
|---|---|---|---|
| Digital lending | 13.1 million | 6.3 million | 114.6% |
| Traditional lending | 16.4 million | 7.4 million | 124.9% |
| Total | 29.5 million | 13.7 million | 114.6% |
Digital lending has played a pivotal role in driving this surge, accounting for nearly half of all searches with 44.4 percent of the total number of inquiries linked to mobile-based or digital lending products. This represents a 74.8% increase over the 13.1 million searches in 2023. This shift towards digital lending reflects the increasing reliance on mobile payment platforms and app-based microcredit services across the country. Many Ghanaians have flocked to these digital platforms to access financial services, thereby expanding the reach of the financial sector to a wider audience. A total of 85 percent of all enquiries were linked to mobile-based or digital lending products. This number is broken down into:
- 44.4% – linked to digital lending products
- 26.5% – linked to microfinance and credit institutions
- 8.8% – linked to other financial institutions
- 20.3% – linked to non-licensed financial institutions
The average number of credit searches per month stood at 2.46 million, compared to 2.11 million in 2023. The report notes that financial institutions, particularly deposit money banks (DMBs), dominated the usage, accounting for 85 percent of all enquiries. Ghana’s informal credit market remains largely unregulated. However, all licenced financial institutions are required to conduct credit checks under the Credit Reporting Act, 2007 (Act 726). This has led to a significant expansion of credit referencing and credit scoring, which has increased the efficiency and accuracy of lending processes.
“The increase in credit flows was mainly due to the expansion of credit to the private sector, and it was underpinned by a pickup in real sector activities.” – Bank of Ghana’s Credit Reporting Activity Report 2024
The growth in digital lending has had a significant impact on the overall structure of the country’s credit market, which has increasingly shifted towards data-driven lending. A broader transformation in Ghana’s credit market is evident, driven by rapid digitisation and a growing emphasis on data-driven lending. A total of 61.1 million loan records were submitted to credit bureaus in 2024, representing a 190.3% increase over the previous year. This growth can be attributed to improved digital loan data reporting, which now makes up the bulk of individual borrower information in the licensed credit bureaus’ databases. Corporate borrower enquiries fell sharply in 2024, representing 472,579 in 2023 to 105,953 in 2024. This represents a 22.7% decline in corporate lending. This decline might be attributed to a change in lending strategies, where lenders are moving towards assessing alternative risk factors for business clients. Alternatively, it could suggest that lenders are relying on established businesses or concentrating their lending efforts on high-risk clients. Despite the growth in digital lending and the increasing use of credit data by financial institutions, public participation remains limited. Self-enquiries, instances where individuals request their own credit reports, declined by 33% in 2024 to 1,372. This highlights the need for stronger consumer education on the use and benefits of credit reporting. The Credit Reporting Activity Report attributes the improved credit data coverage and increased hit rates to the integration of digital loan records into credit bureau databases. This makes it more likely that borrowers have verifiable credit histories, even at low-income levels. The improved hit rate suggests a better depth of credit information in the databases and the integrity of the credit reporting system. “This is relevant, as a high level of hit searches is a measure of credit information depth in the credit bureaus’ databases and the credit reporting system’s integrity.”
The growth in digital lending has opened up financial services to previously underserved populations, however, it has also introduced new complexities for lenders. The report observes that individual borrowers account for 55.2% of all enquiries in 2024, underscoring the retail credit market’s continued expansion. At the same time, corporate borrower enquiries fell sharply, and this may indicate that lenders are moving towards alternative risk assessments for business clients. The central bank aims to deepen financial inclusion, reduce credit risk, and encourage responsible lending through the expansion of credit referencing. In 2024, the Bank of Ghana approved the implementation of credit scoring by licensed credit bureaus, which is expected to streamline lending processes and expand credit access to underserved segments. This move is seen as a crucial step towards increasing access to financial services and promoting financial stability.
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