The growing use of artificial intelligence (AI) and improved access to data are helping reduce non-performing loans (NPLs) in Ghana's fintech sector, strengthening digital lending and expanding financial inclusion.

This is according to Owuraku Asare, Head of the FinTech and Innovation Department, who spoke at the Ecobank JoyBusiness Financial Dialogue Series held under the theme, "Unlocking Access, Empowering Communities, Transforming Economies: Driving Financial Inclusion Through Digital Transformation."

Mr. Asare said the adoption of AI-powered credit assessment tools and data-driven lending models has enabled FinTech firms to make more informed lending decisions, reducing defaults while extending credit to more individuals and businesses.

"The application of artificial intelligence and the effective use of data are helping to reduce non-performing loans in the fintech space. This is strengthening the sustainability of digital lending and increasing confidence in the sector," he said.

According to him, advances in AI and the increasing availability of alternative data are transforming how lenders assess borrowers, particularly individuals and small businesses with limited or no formal credit history.

He explained that by analysing multiple data points, digital lenders are better able to understand customer behaviour, improve risk assessment and make faster lending decisions without compromising the quality of their loan portfolios.

Mr Asare stressed that digital transformation is also playing a critical role in deepening financial inclusion across the country.

"Digital transformation remains a key driver of financial inclusion. It is enabling millions of underserved individuals, as well as micro, small and medium-sized enterprises, to access formal financial services," he noted.

He added that continued improvements in AI capabilities and data quality will further strengthen the sector's ability to support inclusive economic growth.

"As artificial intelligence continues to evolve and data quality improves, the FinTech sector will be better positioned to expand access to finance while maintaining prudent risk management and supporting economic growth," Mr Asare added.

The Ecobank JoyBusiness Financial Dialogue Series brought together regulators, financial institutions, FinTech companies and industry players to discuss how digital innovation can unlock greater access to financial services, empower communities and transform Ghana's economy through greater financial inclusion.