And Michael says there is also hope for consumers with a credit reporting system that is in the pipeline.
This would give borrowers a credit score that can be used across the banking system. He outlined the benefits:
Kareem Michael, Governor, Central Bank
"And the efficiency of this payment system is the credit reporting system. And that's because it reduces information asymmetry. What I don't know about you, I can tell now by a number, and that's when you are trying to borrow from a commercial bank. This has multifaceted purposes and substantial benefits beyond its fundamental role in assessing credit worthiness. The system promotes financial inclusivity by creating financial identities for the larger public, thereby reducing the information asymmetries that hinder access to finance."
"The system will act as a catalyst for individuals to have more access to financial services, give consumers access to their credit information, and protect them from unfair, fraudulent and deceptive credit practices. This is a game changer."
No date for implementation of that system has yet been set.
