XDSData promises Individual Credit Score by end-2024; pegs Ghana Card penetration rate at 35%

XDSData Ghana Limited says it has in collaboration with the Bank of Ghana, been tracking the Ghana Card penetration which stands at 35 percent as at the end of the last quarter of 2023.

This, it noted, is based on 11,067,161 unique active loan customers submitted by Data Providers.

In a press statement issued on Tuesday, December 5, 2023, XDSData Ghana Limited, noted that 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.

Regarding individual credit scores for loans, the Credit Bureau notes that it has the capability of producing individual credit scores as stated in the document Credit Reporting Activity Annual Report 2022 published by the Bank of Ghana. But despite its capabilities, the bureau has not been able to produce individual scores.

Asserting this is the result 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,” it stated.

Adding that individual credit scoring models require unique identifiers to fully map information.

The Credit Bureau notes that in addition to continuous research into the use of alternative information within the credit score models, it anticipates releasing 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,” it said.

“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,” it added.