The Government of Ghana is strengthening regulations governing mobile money (MoMo) loans by linking borrowers more closely to their Ghana Card, a move aimed at improving digital lending, reducing loan defaults, and enhancing financial accountability.
The new measure is designed to close a loophole that allowed some borrowers to discard their SIM cards after defaulting on mobile money loans, making it difficult for lenders to track their credit history and repayment records.
Ghana Card to Strengthen Mobile Money Loan Eligibility
Under the updated system, Ghana Card verification will play a more significant role in determining eligibility for short-term mobile loans, ensuring that borrowers are identified through their national identity rather than relying solely on their mobile phone numbers.
Previously, mobile numbers served as the primary means of assessing customer identity, transaction history, and loan eligibility within Ghana’s rapidly growing digital financial services sector.
Boosting Responsible Digital Lending
The tighter regulations are expected to improve mobile money loan recovery, strengthen credit assessment, and encourage responsible borrowing across the country’s expanding fintech and mobile banking industry.
By linking digital lending more closely to the Ghana Card, authorities aim to protect lenders, reduce fraudulent borrowing, and build a more reliable digital credit ecosystem that supports financial inclusion while promoting responsible access to short-term loans.
The move marks another step in Ghana’s efforts to modernise its digital finance sector and improve the security, transparency, and sustainability of mobile money lending services.
Source: newsthemegh.com