Dr. Frank Bannor, a Development Economist and head of research at the Danquah Institute, has praised Dr. Mahamudu Bawumia, Vice President and NPP presidential candidate, for proposing a national credit scoring system.
According to Dr Bannor, this initiative represents a significant leap forward in Ghana’s financial sector, promising to revolutionize economic participation and digital inclusion across the country.
Dr Bawumia’s proposal aims to enhance mobile phone ownership among Ghanaians by making devices more affordable through structured payment plans.
Dr Bannor highlighted that introducing a standardized credit scoring system would establish a fair and transparent method to assess individuals’ creditworthiness.
This departure from ad-hoc instalment payments and informal practices is expected to provide a more dignified and comfortable financial experience for Ghanaians seeking loans, credit cards, and other financial services.
Drawing comparisons with successful implementations in countries like South Africa, where such systems have benefited underserved communities and small businesses, Dr. Bannor emphasized Vice President Bawumia’s potential to replicate similar success in Ghana. He underscored the system’s ability to empower individuals by enabling them to secure funding for education, housing, and entrepreneurial ventures based on more precise insights into their credit histories.
Furthermore, Dr Bannor explained that the credit scoring system would enable financial institutions to evaluate creditworthiness based on essential factors such as income, debt levels, and repayment behaviour. This standardized approach would streamline the loan application process, promote financial discipline, and attract more investors into the market, thereby fostering economic growth and stability.
Looking ahead to the 2024 presidential elections, Dr Bannor expressed optimism that Dr Bawumia’s effective implementation of the credit scoring system would contribute to building a more inclusive and resilient financial ecosystem in Ghana. He believes that this initiative has the potential to transform the financial landscape, paving the way for sustainable economic development and prosperity in the country.
In conclusion, Dr. Bannor’s endorsement underscores the transformative impact of Dr. Bawumia’s proposal, positioning it as a pivotal step towards modernizing Ghana’s financial sector and empowering its citizens economically.
