Fintech players laud BOG’s caution to MoMo loan, defaulters

Players in the fintech space have praised the announcement by the Bank of Ghana that defaulters of Momo loans stand the risk of being denied access to future credit facilities adding that it would help enhance Ghana’s credit system.

Speaking to Citi Business News on the sidelines of the launch of the Qore ID Chief Executive of the tech firm, Esigie Aguele, expressed confidence that the move by the BOG could significantly reduce the rate of default which remains a major challenge in the fintech ecosystem.

“A lot of credit lenders actually build products on our infrastructure and we know across Africa there’s a lot of loss. Part of the reason for that loss is because there’s no repercussion to not paying back. documenting people and putting them in an environment where they can’t change their identity, number one and then creating a Federated environment where credit can be reported and letting them know that you have to pay back your loans or it’s going to be on your record and have an impact is how the credit system or the credit lending system of the economy is going to grow.”

“So, I think it’s a very, very powerful thing. It’s something that has to happen. Unfortunately, people will have to learn hard lessons about paying back, but this is definitely going in the right direction.” He added.

The Bank of Ghana (BoG) had earlier in September warned individuals who have acquired loans through Mobile Money platforms, but have deliberately refused to register their SIM cards to avoid repayment of the loans to rescind the decision and clear their debt.

A statement from the BoG stressed that “failure to repay such loans will attract negative repercussions on borrowers’ credit reports or history and could subsequently adversely affect any chance of obtaining loan facilities from other financial institutions and credit providers in future”.

About QoreID

QoreID, a dedicated digital identity and consumer analytics solutions company, has launched in Ghana.

QoreID offers a secure API infrastructure that connects businesses to trusted identities and critical customer data, targeted at the medium and large business segments. Solutions include Real-time Identity verifications, Business Verification, Financial Profiling, Fraud Prevention, Automated last-mile for Fintech, Digital addressing and AI-Powered Authentication, among others.

Nana Amoako-Anin, a member of the board of the company, said: “QoreID’s entry into the Ghana market is about offering a consistent portfolio of services that will work to empower the financial sector and contribute to the tech ecosystem. I look forward to seeing QoreID’s many dimensions take flight.”

Driven by a mission to grow Africa’s trust economy, QoreID is focused on supporting growth within the continent’s emerging digital and consumer credit economies, including open banking, FinTech, digital and e-Commerce companies, banks, insurance, and other legacy financial services.