Accra: The Bank of Ghana has approved a new partnership between local credit reporting agency XDS Data (Ghana) Ltd and US-based Nova Credit Inc. The collaboration was announced by the central bank in its Credit Reporting report for the year 2024.
According to Ghana News Agency, this partnership aims to tackle the 'credit invisibility' issue faced by Ghanaians living abroad, who often find it challenging to access essential financial services due to a lack of recognized credit history in their new countries. This initiative will allow Ghanaians residing in nations such as the United States, Canada, the United Kingdom, and Australia to have their credit histories from Ghana securely shared with lenders, landlords, and other service providers in their host countries.
This effort is considered a crucial step towards reducing the financial barriers encountered by mobile individuals. It will enable Ghanaians abroad to qualify for essential services like bank accounts, credit cards, rental agreements, and mobile phone plans, which are typically inaccessible without a local credit score.
Under the agreement, XDS Data Ghana Limited will act as the data contributor and verification source. The company will securely share the credit information of Ghanaian individuals, with their consent, with Nova Credit. Nova Credit specializes in translating international credit data for use by financial institutions and other service providers globally.
This cross-border credit reporting service is expected to significantly enhance the financial inclusion of Ghanaians in the diaspora, allowing them to establish a financial foothold and more fully participate in the economies of their new homes.
