ADVERTISEMENT

Digital ID credit scoring will de-risk finance and cut borrowing costs - Bawumia

Vice President Dr Mahamudu Bawumia emphasized the necessity of implementing a robust individualized credit scoring system coupled with a functional digital identity infrastructure during the ongoing 3i Summit on Tuesday.

Digital ID credit scoring will de-risk finance, cut borrowing costs - Bawumia

The summit, themed around Innovation, Investment, and Impact in Africa's Fintech Ecosystem, saw prominent figures from the financial and technological sectors convening to discuss pivotal advancements.

Addressing attendees, Dr Bawumia highlighted the critical role of digital technologies in Africa's journey toward financial inclusion, citing Ghana's remarkable progress in the past seven years. Notably, Ghana has emerged as a leader in mobile money adoption and financial inclusivity on the continent.

"Two things are critical for Africa's financial inclusion agenda," stated Dr. Bawumia. "First is the need for a digital identity for all citizens, and second, a mobile money interoperability allowing banks and mobile money accounts to move funds freely back to back."

Dr Bawumia underscored the significance of transitioning from traditional credit scoring methods based solely on bank accounts to a more inclusive approach incorporating mobile money accounts. He emphasized that such measures would significantly mitigate risks in the financial ecosystem and reduce borrowing costs.

ADVERTISEMENT

President Nana Addo Dankwa Akufo-Addo, during the summit's opening ceremony on Monday, praised Ghana's strides in digital transformation, highlighting initiatives like the Ghana Card and the Ghana.Gov portal. These initiatives, he noted, have revolutionized public service delivery and expanded financial inclusion, with approximately 17 million citizens possessing digital IDs.

Finance Minister Dr Mohammed Amin Adam reaffirmed the government's commitment to fostering a conducive macroeconomic environment to support financial innovations. He cited Ghana's economic rebound and measures to accelerate disbursements to bolster the economy.

The 3-day 3i Africa Summit has gathered key stakeholders from across the continent, including heads of state, central bank governors, and executives from fintech companies and financial institutions. Discussions have revolved around promoting innovation, regulatory frameworks, and nurturing the fintech ecosystem to enhance financial inclusion across Africa.

The summit has highlighted Ghana's achievements in fostering a vibrant fintech ecosystem and recognized efforts by regulatory bodies, such as the Bank of Ghana, in establishing conducive regulatory frameworks for fintech innovation.

With leaders advocating for digital identity programs, mobile money interoperability, and innovative fintech solutions, the 3i Summit has set the stage for collaborative efforts to drive financial inclusion and economic growth across Africa.

ADVERTISEMENT

The summit continues to draw attention to the transformative potential of fintech in addressing longstanding challenges and advancing inclusive development on the continent.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh

ADVERTISEMENT