Policy Updates

The Bank of Ghana Designates Digital Credit Services as a Non-Bank Financial Service

By Veronica Shiroya

The Bank of Ghana has formally recognized Digital Credit Services as a Non-Bank Financial Service under the First Schedule of the Non-Bank Financial Institutions Act, 2008 (Act 774).

In a public notice (No. BG/GOV/SEC/2025/28), the central bank said the designation is part of broader efforts to expand access to the financial system and strengthen financial inclusion in the country.

However, the Bank stressed that the move does not amount to automatic authorization for companies already operating under Act 774 to provide digital credit services. Instead, it announced that a detailed directive outlining licensing requirements for digital credit service providers will be issued in due course.

Targeted Institutions/Business Models under the Notice

The Bank of Ghana’s move specifically targets:

  1. Unregulated fintech lenders – Many currently operate without a clear licensing regime, offering digital loans outside the traditional banking framework.

  2. Telecom-led credit models – Mobile operators who collaborate with financial partners to provide credit through mobile wallets.

  3. App-based instant loan providers – Firms providing unsecured microloans via mobile apps, which sometimes face criticism for predatory practices, high interest rates, or misuse of customer data.

  4. New entrants into Ghana’s digital credit ecosystem – Startups or foreign fintechs planning to expand into Ghana.

African Approaches to Regulating Digital Credit

Across Africa, central banks have adopted two broad approaches to regulating digital credit:

  1. Pre-approval and strict oversight model – Regulators treat digital credit as a banking product, requiring approval before products are launched.

    • WAEMU (West African Central Bank): Digital credit is classified as a banking service. Providers must seek approval before rollout, ensuring consumer protection and financial stability through pre-market vetting.

  2. Progressive regulation of non-bank providers – Regulators recognize fintech-led models and create specific legal frameworks for them.

    • Tanzania: Introduced the National Payment Systems Act 2015 and Electronic Money Regulations 2015, enabling non-bank issuance of e-money and digital credit under Bank of Tanzania oversight. Later, the Microfinance Regulations 2019 mandated disclosure of interest rates in digital loan contracts.

    • Uganda: Started with mobile money guidelines in 2013, later passed the National Payment Systems Act 2021. The Bank of Uganda also runs a regulatory sandbox with the Capital Markets Authority to test fintech and digital payment innovations.

    • Kenya: Established Digital Credit Providers Regulations (2022) under the CBK, requiring licensing of digital lenders. Kenya’s National Payment Systems Act also enables non-bank providers to operate within a formal framework.

Why This Matters

  • The regulation brings digital credit providers under the Non-Bank Financial Institutions Act, meaning they’ll need a license to operate.

  • It protects consumers by ensuring fair lending practices, transparency, and data protection.

  • It aligns with Ghana’s broader financial inclusion agenda, ensuring digital credit grows in a safe and sustainable way.