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). The move, announced in a notice dated August 29, 2025, marks a turning point in the country’s digital lending landscape. It signals the regulator’s commitment to expanding financial inclusion while strengthening consumer protections.
Why the Designation Matters
Mobile and app-based lending has grown rapidly in Ghana, but until now, it has operated under fragmented regulatory permissions. By creating a formal category, the BoG establishes a clear framework for compliance, licensing, and supervision. This development provides clarity for service providers and assurance for consumers concerned about transparency and fair treatment.
Aims of the Initiative
The central bank explained that the designation forms part of efforts to broaden access to the financial system. It stressed that well-structured oversight of digital credit can promote financial inclusion, especially for underserved communities. At the same time, regulation is intended to curb predatory lending practices that have raised concerns in other markets.
Clarifying the Scope
BoG emphasized that the designation does not equate to an automatic license for institutions currently providing digital credit. Providers will be required to meet forthcoming licensing standards before being authorized to operate officially. This ensures that only legitimate players with adequate governance, capital, and consumer safeguards remain active in the sector.
What Comes Next
The Bank announced that it will issue a Directive detailing licensing requirements for digital credit providers. This document is expected to set out thresholds for capital adequacy, governance standards, reporting obligations, and consumer protection measures. A transition window will also allow existing operators to either align with the new rules or exit the market.
Implications for the Industry
The designation brings Ghana’s digital lending ecosystem under a single regulatory umbrella. Stakeholders anticipate stricter rules on disclosures, interest rate transparency, data privacy, debt collection, and complaint resolution. While compliance may present challenges, the new structure creates a level playing field that could build trust and attract responsible investment.
Stakeholder Reactions
Industry observers note that coordination with telcos and credit bureaus may become central to the new regime. This integration could improve credit assessments, reduce default risks, and encourage responsible lending models. For consumers, it offers hope for fairer access to credit and protection against exploitative practices.
By formally recognizing Digital Credit Services under Act 774, the Bank of Ghana has laid the groundwork for a licensed digital lending industry. The forthcoming Directive will determine how quickly legitimate providers can scale while pushing out predatory operators. For Ghana, this represents a critical step toward financial inclusion through innovation, backed by regulatory safeguards.