In light of the increasing risks posed by uncertified loan applications, cybersecurity analyst Maximus Ametorgoh has urged the Bank of Ghana to enhance its regulation of loan applications.
This call comes following the recent crackdown by the Bank of Ghana on 97 loan apps that were found to be engaging in unlicensed lending activities, thereby violating the Banks and Specialized Deposit-Taking Institutions Act, 2016 (930).
In an interview with Citi Business News, Mr. Ametorgoh emphasized the importance of collaboration between the Bank of Ghana, telecom service providers, value service providers, and app developers to ensure the secure operation of loan apps and safeguard vulnerable borrowers.
He highlighted that individuals seeking loans often face economic pressures that drive them to explore digital lending options, without necessarily being aware of whether these apps are certified or authorized.
To address this issue, Mr. Ametorgoh proposes that “the Bank of Ghana engages in dialogue with telecom service providers, value service providers, and app developers, establishing a baseline regulation that requires any payment platform, electronic money issuer, or loan provider operating on the internet to obtain approval from the central bank.”
By implementing this measure, any financial service available online would be presumed certified, ensuring that borrowers can make informed decisions without the risk of falling victim to unlicensed lending activities.
Additionally, Mr. Ametorgoh suggests the development of a short code or an app that individuals can utilize to verify the certification and legitimacy of loan apps.
This verification mechanism would provide borrowers with the necessary information to assess the credibility and compliance of these digital lending platforms, thereby mitigating the chances of fraudulent or predatory practices.