Business News of Saturday, 9 November 2019
The contagion effect of Ghana’s financial crises appears to have hit the operations of Credit Reference Bureau’s in the country.
Checks by TV3 Business reveal the closedown of banks and other financial institutions have greatly impacted on the bottom-line of the three credit reference bureaus (CRBs) namely XDS Data, Dun and Brudstreet and Hudson Price Data Solution.
The CRBs make their monies largely based on charges on subscription with unlimited usage. XDS Data, for instance, which had over 200 clients before the revocation of licenses now has just about 83 active client user base with the closure of some banks, microfinance, microcredit, savings and loans and other financial institutions.
An interview with some of the operators reveal they might be considering reviewing their rates soon due to increase in wage bill and other operating costs.
Some have also urged the Bank of Ghana to consider offering them a bailout. The hardest-hit maybe Hudson Price Data Solution, which offers much of its service to the microfinance institutions considering that the Bank of Ghana revoked the licenses of 386 microfinance and microcredit companies.
In addition, some of the Credit Reference Bureaus are reluctant to update the financial records of individuals related to the erswhile banks because TV3 Business checks show the receiver is hesitant to make payments to the CRBs.
A Credit Reference Bureau or Agency is a…