Flagbearer of the governing New Patriotic party (NPP), Dr. Mahamudu Bawumia says individualized credit scoring will be rolled out in Ghana before the end of the few of this year to make life easy for Ghanaians who may want to purchase items on credit and pay overtime.
The move, according to the Vice President, will transition the country from a cash-based system and help young businesses to grow.
Speaking at a ceremony to commemorate International Youth Day at the Pentecost Convention Center in the Central Region on Monday, Dr. Bawumia stressed on the transformative potential of this new credit system.
“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.”
The Vice President also promised to train one million youth in the digital space if elected President in the upcoming elections.
“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.”
According to available information, 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, and this generally affects interest rates, which are normally high across board.
Source: Myjoyonline.com
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