Data presented at the FinTech Stakeholder Forum exposed a surprising dynamic in Ghana’s lending landscape. While mobile money platforms are relatively young, serving financially underserved customers, they are recording exceptionally low loan default rates compared with traditional banks.
The figures showed 55% of mobile money loans were partial defaults, 4.51% full defaults, and 40% experienced no default, highlighting that most borrowers eventually repay, even if not on the stipulated date.
Clara Arthur, CEO of the Ghana Interbank Payment and Settlement Systems (GhIPSS), explained that the platforms’ edge comes from leveraging built-in KYC and detailed digital footprints. By monitoring user behaviors, from mobile top-ups to recurring payments such as DSTV subscriptions, platforms can assess repayment capacity in real time. This approach allows lenders to manage risk dynamically, even among borrowers with irregular incomes.
“Digital credit platforms have in-built KYC that allows us to understand user behavior. This visibility and behavioral insight is why mobile money sees better repayment outcomes, despite serving financially underserved customers compared to traditional banks,” Arthur said.
She noted that partial defaults often reflect timing issues rather than unwillingness to pay, illustrating how behavioral tracking helps distinguish between temporary cash flow gaps and true credit risk.
Arthur contrasted this approach with traditional banks, which rely on static credit histories and formal checks that may overlook day-to-day financial behaviors. She suggested that banks and FinTechs can learn from one another, combining regulatory rigor with real-time insights to improve repayment outcomes across the sector.
The discussion also touched on trust and interoperability. Responding to findings that only 42% of mobile financial services users expressed trust, Arthur stressed that confidence in the system depends on seamless coordination between banks, FinTechs, and wallets.
She further highlighted that interoperability and transparent operations are essential for building consumer confidence.
The FinTech Stakeholder Forum, themed “Harnessing Ghana’s Fintech Potential: Regulatory Frameworks for Digital Credit and Digital Assets,” convened regulators, banks, and FinTech operators to explore ways to strengthen Ghana’s digital finance ecosystem.
The conversation underscored that while mobile money platforms are already demonstrating strong repayment performance, continued collaboration, technological innovation, and trust-building will be crucial to sustaining and expanding financial inclusion.
