Last Updated- Jun 6, 2009 8:11 - - 0 Comments


First credit reference bureau in Ghana launched

The first credit reference bureau in Ghana and West Africa, XDS Data Ghana Limited, has begun operations with an official launch in Ghana.

A credit bureau is a repository of credit information, a neutral entity that collates consumer credit information by soliciting creditors such as banks and other lending institutions to contribute and share their credit information on consumers.

George Ahiafor, Chief Executive, XDS Data, in an interview disclosed to B&FT that obtaining credit in most developing countries is a frustrating process that usually leads to wrong credit decision ­making.

Banks are therefore unwilling to extend credit without assurances that borrowers are creditworthy and that it will be possible for them to pay back, he explained.

The government signed into law the Credit Reporting Act, 2007 (Act 726) on April 13, 2007 to facilitate the activities of reference bureaux.

This law paved the way for licencing the first credit referencing bureau in the country. The Act facilitates smooth credit information-sharing among credit data providers.

Currently, XDS Data deals with all banks, non-banks and other retail companies operating in the country.

XDS Data Ghana is a privately-owned company with XDS South Africa, Databank Financial Services Ghana, and Debenture Trust Company Limited Ghana as shareholders. Its range of products and services are an integral component of economic reforms and restructuring the financial sectors in the world’s emerging economies.

XDS Data’s focuses are in the Banking, Retail, Insurance, Micro-lenders, and Telecommunication among others. Its partner, XDS South Africa, have been involved in credit bureau, fraud, authentication, and credit-risk projects throughout the world – with extensive experience in the African Market, notably South Africa.

Source: B&FT

Email This Post Email This Post | Print This Story Print This Story

Comments

Got something to say?