The Bank of Ghana (BoG) has formally designated Digital Credit Services as a Non-Bank Financial Service under the First Schedule of the Non-Bank Financial Institutions Act, 2008 (Act 774).
Why it matters
- Brings mobile/app-based lending under an explicit regulatory umbrella.
- Paves the way for clearer licensing and consumer-protection rules as digital lending expands.
- Signals BoG’s intent to use regulation to promote financial inclusion while curbing bad actors
The details:
- The designation does not grant automatic authorization or licenses to current digital lenders.
- BoG says it will issue a Directive outlining licensing requirements for providers of Digital Credit Services.
- Applies to entities already operating under Act 774’s First Schedule.
Catch up fast
Ghana’s digital lending market has grown rapidly via mobile money rails and fintech apps, but providers have operated under varied permissions. A formal category creates a single reference point for compliance and supervision.
Between the lines
Expect tighter standards on disclosures, interest/fee transparency, data privacy, collections practices, and complaint resolution—areas that have drawn consumer complaints in other markets.
What’s next
- Publication of the BoG Directive with application steps, capital and governance thresholds, and reporting duties.
- A transition window for existing providers to align or exit.
- Potential coordination with telcos and credit bureaus for responsible lending.
The bottom line
BoG just set the stage for licensed digital lending in Ghana. The coming Directive will determine how fast legitimate players scale—and how quickly predatory models are pushed out.
