In his keynote address at the Chartered Institute of Bankers’ Governor’s Day, Dr. Ernest Addison, Governor of the Bank of Ghana, disclosed the initiation of surveillance and investigations into illegal lending applications.
The central bank noted it has identified and taken action against over 200 loan apps offering unapproved and unlicensed lending products to Ghanaians.
Dr. Addison highlighted the Bank of Ghana’s collaboration with Google’s Regulatory and Policy unit, resulting in the removal and barring of 200 such loan apps from the Google Play Store. Subsequently, Google has revised its Personal Loan Policy to restrict these lending apps from accessing device information, including SMS and contacts.
“The Bank started surveillance and investigations into activities of illegal lending applications have commenced with the identification of over 200 loan apps offering unapproved and unlicensed lending products to the Ghanaian consumer”.
“The Bank continuously engaged Google’s Regulatory and Policy unit, which facilitated the removal and barring of 200 loan apps from the Google Play Store,” stated the Governor.
Despite facing challenges throughout the year, the Central Bank remained steadfast in its commitment to promoting financial inclusion as a key policy objective. Recognizing its potential for broad-based economic growth and poverty alleviation, the central bank has utilized policy and regulatory tools to create an enabling environment for digital financial services.
Governor Addison emphasized that the central bank’s efforts have led to the presence of 52 non-bank payment service providers, offering diverse payment solutions to meet the increasing expectations of consumers.
In a move to advance fintech activities, the Bank of Ghana successfully engaged with market players, including banks, DEMIs, PSPs, and MTOs, in the inward remittance termination space. The objective was to identify issues and implement policies and measures associated with inward remittance termination services, ensuring a level playing field for all market participants.
Furthermore, the central bank launched the first cohort of its Regulatory Sandbox, aimed at supporting innovations in new digital business models not explicitly or implicitly covered under existing regulations. These innovations have the potential to address current financial inclusion challenges, reflecting the Bank of Ghana’s proactive approach to fostering a dynamic and inclusive financial landscape.