Why More Accra Residents Are Using Online Lending Platforms

An Accra Street Journal Finance & Technology Intelligence Brief

Executive Summary

The rise of online lending platforms in Accra is one of the most significant financial trends of the decade. Digital lending has transformed from a niche alternative to a mainstream financial service, driven by a combination of technological infrastructure, regulatory reform, and unmet demand for fast, accessible credit.

The numbers are striking. Credit checks in Ghana more than doubled in 2024, with 29.5 million credit searches conducted—a 114.6 percent increase over the previous year. Digital loans now account for nearly half of all credit enquiries, reflecting the rising use of mobile money platforms and app-based microcredit services across the country . Financial institutions, particularly deposit money banks, accounted for 85 percent of all enquiries, followed by microfinance and microcredit institutions .

This ASJ report examines the structural drivers of this shift: the convenience and speed of digital lending, the use of alternative data for credit scoring, the regulatory framework enabling growth, the risks of over-indebtedness, and the evolving landscape of fintech lending in Ghana.

Part 1: Convenience and Speed — The Core Appeal

The most immediate reason Accra residents are turning to online lending platforms is the stark contrast between digital and traditional credit access.

The Branch Experience vs. The App Experience

Traditional bank loans require paperwork, collateral, branch visits, and days or weeks of waiting. Digital lending platforms offer a fundamentally different experience. As one industry observer noted, the “time to decision” for MSME lending averages three to five weeks for traditional deposit-based institutions but only five minutes for a digitised process .

For Afua, a 29-year-old boutique owner in Madina, this is the difference between seizing a business opportunity and missing it. Rather than visiting a bank branch and presenting collateral, she applies through an app on her smartphone. Within minutes, she receives a loan offer tailored to her transaction history and repayment behaviour . This speed enables her to stock up for peak seasons and respond to supplier deals.

FIDO, a digital lender operating in Ghana and Uganda, has disbursed over one million loans, serving approximately 400,000 customers in a month . Customers download the app, take a selfie, scan their ID, and answer some questions. There is no paperwork, no collateral, no waiting in line . The customer base is diverse: small-scale farmers, artisans, micro-entrepreneurs .

The Platform-Native Customer

The shift to online lending is part of a broader behavioural change. Mobile money usage surged to 80% in 2025, while ATM usage fell sharply to 16% . The last time Afua stepped into a bank was 14 months ago. Her entire financial life is digital, decentralised, and on-demand . This is not a niche demographic—it is the emerging mainstream.

Part 2: Alternative Data — Lending Without Credit History

The second structural driver is the ability of digital lenders to assess creditworthiness using data that traditional banks ignore.

The “No Credit History” Problem

Most Accra residents in the informal sector lack the formal credit history that banks require. A nurse who wanted to start a fruit and vegetable stall at Makola Market was declined by both a bank and a traditional microfinance institution because she had no existing credit history . Traditional underwriting models meant little to nothing in a market where most people lack formal financial histories .

Alternative Data Solutions

Digital lenders use alternative data sources to solve this problem. FIDO utilizes an ensemble of proprietary models, with the star being their underwriting technology (FIDO Score), which instantly underwrites clients based on hundreds of data indicators—mobile money transactions, behavioural patterns, and more . “It’s not just about how much money someone has in the bank, but about how they behave” .

Affinity, another Accra-based digital bank, uses financial education cues and responsible lending practices to allow customers to build creditworthiness over time . The company received a Savings and Loans license from the Bank of Ghana in 2022—the first such license granted in over a decade—and officially launched operations in October 2024 .

The SIM Registration Connection

The government’s planned SIM re-registration exercise is being positioned as a key tool to strengthen digital lending. Communication Minister Sam George stated that the policy will “allow digital lenders who are offering critical credit to SMEs to see and appreciate the creditworthiness of their customers” . Linking SIM registration data with credit profiling systems is expected to promote responsible lending practices while expanding access to finance, particularly for the underserved .

Part 3: The Credit Bureau Infrastructure

The expansion of digital lending has been accompanied by a significant deepening of Ghana’s credit reporting infrastructure.

The Doubling of Credit Enquiries

In 2024, a total of 29.5 million credit searches were conducted by financial institutions and authorised users—a 114.6 percent increase over the 13.7 million searches recorded in 2023 . Of this total, 44.4 percent (13.1 million) were linked to mobile-based or digital lending products, reflecting the rising use of mobile money platforms and app-based microcredit services .

The average number of credit searches per month stood at 2.46 million in 2024, compared to 2.11 million in the previous year . Financial institutions, particularly deposit money banks, dominated usage—accounting for 85 percent of all enquiries—followed by microfinance and microcredit institutions, which together made up 8.8 percent .

Improved Data Quality

Notably, the percentage of enquiries that returned usable credit data also improved. In 2024, 76 percent of searches resulted in hits—up from 72 percent in 2023, indicating both the growing depth of data coverage and improved data quality . This is relevant because “a high level of hit searches is a measure of credit information depth in the credit bureaus’ databases and the credit reporting system’s integrity” .

The integration of digital loan records into credit bureau databases has made it more likely that borrowers have verifiable credit histories even at low-income levels . The central bank has approved the implementation of credit scoring by licensed credit bureaus, a move expected to further streamline lending processes and expand credit access to underserved segments .

Part 4: The Regulatory Framework — Enabling Responsible Growth

The Bank of Ghana has played a pivotal role in enabling the digital lending boom while seeking to mitigate its risks.

The Digital Credit Directives

At the 2025 Fintech Stakeholders Forum, ReFinD Executive Director Prof. Peter Quartey described the Bank of Ghana’s digital credit directives as “a strategic catalyst designed to reshape the economy” . The directives position Ghana to achieve a balance between innovation, inclusion, and stability .

However, Quartey cautioned that challenges such as digital literacy gaps, consumer trust issues, and uneven rural connectivity could hinder full inclusion. “Digital credit must not only extend access but also empower the underserved,” he said. Smart regulation and responsible lending will be key to making digital finance work for the unbanked” .

Preventing Over-Indebtedness

One of the central regulatory concerns is the risk of borrowers becoming trapped in cycles of debt. FIDO’s model includes built-in safeguards to prevent over-indebtedness: debt-to-income ratios calculated using behavioural and transactional data, mandatory repayment of existing loans before taking new ones, and cooling-off periods between loans . “We don’t allow rollovers or refinancing. There’s only one way to get another loan: to pay off the previous one” .

Research presented at the Fintech Stakeholders Forum noted that “partial defaulters are often willing but unable to repay due to high interest rates. Optimizing pricing and leveraging AI-driven credit scoring can help bridge this gap” . The Bank of Ghana observed that the non-performing loan ratio increased slightly to 21.79 percent for 2024 from 20.58 percent in 2023, and believes that broader adoption of credit referencing and credit scoring will help lower this figure over time by reducing the risk of adverse selection .

Part 5: The SME and Informal Sector Impact

Digital lending has had a particularly significant impact on small businesses and the informal sector.

SMEs as the Backbone

Small businesses in Ghana account for 85% of businesses and contribute around 70% of Ghana‘s GDP . Yet many of these entrepreneurs fall into the Bottom of the Pyramid, unable to access traditional banking services due to no existing credit history . Digital lenders have stepped into this gap, providing credit to MSMEs with limited or no credit history .

72% for Growth, Not Survival

72% of FIDO’s customers use loans for growth, not survival . Alon Eitan, CEO of FIDO, gave the example of a nurse who used her first loan to start a fruit and vegetable stall at Makola Market. Since then, she has taken out over 20 loans and expanded from a single stall to over five shops, employing people in her local community .

The Informal Formalisation Effect

Digital lending platforms are also contributing to the formalisation of the informal economy. Oze, a business management app that doubles as a lending platform, serves over 10,000 SMEs with bookkeeping tools and credit access . Businesses that log sales, pay suppliers, and manage inventory through Oze build a credit profile organically, creating a digital financial footprint that can be used for future credit applications .

Conclusion: The New Financial Architecture

The rise of online lending platforms in Accra is not a passing trend. It is a structural shift driven by technological infrastructure, regulatory support, and unmet demand. Digital lenders have demonstrated that they can serve customers who have been excluded from the formal financial system—using alternative data, mobile-first design, and automated underwriting.

The benefits are clear: speed, convenience, and access to credit for the underserved. The risks are equally real: the potential for over-indebtedness, high interest rates, and the exclusion of those without smartphones or digital literacy.

The next phase of growth will depend on whether the regulatory framework can balance innovation with consumer protection. As Prof. Quartey concluded, “Smart regulation and responsible lending will be key to making digital finance work for the unbanked” . The infrastructure is being built. The challenge is ensuring that it serves all Ghanaians, not just those with the fastest internet connections.

Quick Reference: Online Lending in Accra

Last Updated on July 13, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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