BoG enforces licensing and ethical standards for Digital Credit Providers
Date: 2025-10-21
The Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, has announced that all digital credit providers are now required to obtain licenses and comply with ethical lending standards under the central bank’s new directive on digital credit service provision, which took effect last month.
Speaking
at the 2025 Fintech Stakeholder Forum organised by Mobile Money LTD in Accra, Mrs. Asante-Asiedu explained
that the directive mandates lenders to disclose all loan terms, including
interest rates, repayment periods, and fees, in clear and transparent language
before loan disbursement. It also establishes governance and consumer protection
rules to ensure fair treatment of borrowers.
She
said the policy aims to promote responsible lending and safeguard consumers
while allowing innovation to thrive within Ghana’s digital finance ecosystem.
The event was held under the theme “Harnessing Ghana’s Fintech Potential: A
Regulatory Framework for Digital Credits and Digital Assets.”
Mrs.
Asante-Asiedu revealed that the Bank of Ghana’s investigations had uncovered
several unlicensed digital lenders operating through mobile applications and
online platforms, engaging in exploitative practices. These operators, she
said, charged excessive interest rates, breached data privacy laws, and
harassed customers during debt collection processes.
“These
entities operated outside our regulatory framework, preying on vulnerable
individuals. Their practices undermine consumer confidence and threaten the
integrity of the financial system,” she said.
The
Deputy Governor noted that the central bank’s enforcement action forms part of
a broader effort to restore discipline, transparency, and ethical conduct in
the digital finance industry. She also disclosed that the Bank of Ghana, in
collaboration with the Securities and Exchange Commission (SEC) and the
Financial Intelligence Centre (FIC), had completed work on a Virtual Assets
Service Providers Bill to regulate cryptocurrency exchanges and virtual asset
platforms in the country.
Highlighting
the bank’s digital transformation agenda, Mrs. Asante-Asiedu said the central
bank is deploying Supervisory Technology (SupTech) and Regulatory Technology
(RegTech) tools to strengthen oversight and enhance efficiency in financial
supervision. These tools, she explained, will enable real-time monitoring of
financial risks and compliance issues, improve data analysis, and ensure that
innovation is balanced with strong regulatory systems.
“Our
goal is to build a financial system that is modern yet moral, dynamic yet
disciplined, and one that truly serves the people,” she emphasized.
By:
Nana Appiah Acquaye
