The Bank of Ghana (BoG) has formally designated digital credit services as a non-bank financial service, bringing the country’s rapidly growing digital lending sector under regulatory oversight.
In a notice issued on Friday, August 29, the central bank explained that the classification falls under the First Schedule of the Non-Bank Financial Institutions Act, 2008 (Act 774). The move, it said, is aimed at broadening access to financial services, strengthening supervision, and protecting consumers while advancing Ghana’s financial inclusion agenda.
Digital credit services—commonly delivered via mobile applications and fintech platforms—have become popular in recent years, providing short-term and small-ticket loans to individuals and businesses outside traditional banking channels. By regulating the space, the BoG hopes to encourage responsible lending practices and reduce risks linked to unregulated operators.
The central bank stressed, however, that the notice does not grant automatic authorisation to current service providers. “This Notice does not confer automatic authorisation or licence to provide digital credit services on all entities which currently provide services and operate under the First Schedule of Act 774,” it said, adding that a detailed directive on licensing requirements will be issued in due course.
Governor Dr. Johnson Pandit Asiama, who has consistently highlighted financial inclusion as a policy priority, described the step as part of a broader strategy to leverage fintech to expand access to affordable financial services. He has pledged to support initiatives that promote innovation, secure digital transactions, and expand financial access in underserved communities.
The BoG believes the formal recognition of digital credit services will enhance transparency and trust in the sector, making digital lending more attractive to consumers and investors alike. Stakeholders have been urged to take note of the new designation and prepare for the forthcoming directive on licensing and operations.
Source: thebftonline.com
