Vice President Dr. Mahamudu Bawumia, has said that the individualised credit scoring system may commence by end of the year for Ghanaians who want it to purchase items on credit and pay in installment.
The initiative, according to the Vice President, will help transition the country from a cash-based system and help other business startups to grow.
Speaking at the commemoration of the International Youth Day Monday, August 12, 2024, at the Pentecost Convention Center in the Central Region, he highlighted on the potential of the scoring system to bring transformation to the country.
“This system will open up new opportunities for individuals and small businesses to access credit, which in turn will drive economic growth and job creation.
“We are shifting from a cash-based system to a credit-based one, where credit scoring will enable lenders to make informed decisions. This means that someone, like a hairdresser who has just completed training, can purchase equipment on credit and pay in small installments over time. The same applies to carpenters and other professionals,” he stated.
He also promised to train one million youth in the digital space if elected President in the December polls.
“One of the areas that I am going to be very keen on is training one million youth in digital skills. This is because without the skills the youth cannot have the opportunity to participate fully in the fourth industrial revolution. There are many job opportunities, both inside and outside Ghana if you have the skills and training the youth in digital skills can be done without the youth necessarily having a university degree or going to a polytechnic.”
A credit-scoring system is a statistical analysis deployed by financial institutions and lenders to assess a borrower’s creditworthiness.
It helps the lender to determine who is a high-risk or low-risk borrower, and the credit score of an individual can determine the maximum amount the person can borrow, as well as the interest rate to be applied.
In countries where there are no individualised credit-scoring systems, everyone is considered a high-risk borrower which generally affects interest rates, which are normally high across board.
Source:onuaonline.com