The Bank of Ghana (BoG) has announced it will issue comprehensive guidelines on digital lending by August 2025, in response to a troubling rise in exploitative lending practices targeting vulnerable Ghanaians.
This policy forms the third leg of a five-part regulatory reform agenda designed to promote financial stability, consumer fairness, and market discipline.
Dr. Johnson P. Asiama, Governor of the Central Bank, disclosed the planned measures during a high-level engagement with bank CEOs, warning that the rapid proliferation of digital lending platforms—many operating with minimal oversight—has created a landscape fraught with abuse.
A growing threat to financial dignity
“Too many Ghanaians, especially young people and those working in the informal sector, are being lured by digital lenders making bold promises, only to find themselves trapped in cycles of hidden fees, aggressive collection tactics, or worse,” Dr. Asiama said. “We’ve received disturbing reports of borrowers being threatened, shamed, and even defrauded—all in the name of accessing quick loans.”
He described the new guidelines as both urgent and necessary. The lack of transparency in interest rates, the violation of data privacy, and the use of unethical recovery methods have not only harmed individuals but also undermined trust in Ghana’s financial system as a whole.
What the guidelines will cover
The upcoming rules will establish enforceable standards across several key dimensions.
First, all digital lenders—whether they are banks or non-bank entities—will be required to obtain licensing or authorization from the Bank of Ghana.
This will ensure that only credible and accountable institutions operate in the space.
Second, lenders must disclose all relevant terms and conditions, including interest rates and applicable fees, clearly and transparently before a transaction is completed.
BoG wants to eliminate hidden costs that often catch borrowers unaware and trap them in debt cycles.
Third, the guidelines will demand full compliance with national data protection laws.
Institutions will be required to handle consumer data with utmost care and ensure privacy rights are not violated in pursuit of repayment.
Fourth, and perhaps most critically, the Central Bank is banning all forms of harassment, intimidation, and public shaming during loan recovery.
Dr. Asiama stressed that recovery practices must be ethical and dignified, preserving the humanity of those who fall behind on their payments.
Time to prepare for compliance
Dr. Asiama called on all financial institutions engaged in digital lending—either directly or through partnerships with fintechs—to immediately review their business models and prepare for the coming reforms.
“Now is the time to reflect on how your institution lends, what protections you offer borrowers, and whether your practices align with the values of fairness and transparency we expect,” he said.
He reaffirmed the BoG’s commitment to balancing consumer protection with innovation, stating that responsible digital lending should be encouraged, but never at the cost of human dignity.
“Our goal is twofold: to protect borrowers, especially the most vulnerable, from exploitation, and to enable responsible, well-regulated digital lenders—including banks and their fintech partners—to thrive,” he said.
A broader regulatory effort
This upcoming policy is part of a broader package of five key regulatory measures the Bank of Ghana is rolling out to address systemic issues in Ghana’s banking and payments ecosystem. Other reforms in the pipeline include measures on reserve requirements, transparency in foreign exchange pricing, card transaction fee caps, and more aggressive enforcement of consumer protection standards.
As the financial sector evolves, the Central Bank’s message is clear: innovation must go hand-in-hand with integrity.
