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By Ephraim Ofori NUMOSUOR Across the Western world, the moment a person secures a job, their life begins to take shape. They can buy a phone, rent an apartment, furnish it, and even get a car — all on credit. Why? Because the financial system trusts verifiable employment and uses it as the foundation of creditworthiness. In Ghana, however, the story is painfully different. A young graduate who finally lands a job in Accra after years of job hunting suddenly discovers that the struggle has only changed form. He must relocate from Tamale or Sunyani, rent accommodation, furnish it, and meet basic work-related expenses. Yet when he walks into a bank — armed with his appointment letter, pay slip, and valid ID — he is told bluntly: “Come back after your six-month probation.” Even after probation, he may still be required to produce a guarantor and a letter of undertaking from his employer. In some cases, the process becomes so exhausting that many simply give up and resort to high-interest informal lenders. But this raises a fundamental question: what is the value of formal employment if our financial system still treats the newly employed as financial risks rather than national assets? The irony is that these same banks already have first-hand proof of these workers’ credibility. Most newly employed individuals receive their salaries through the very banks that are denying them credit. The bank sees the consistent monthly inflows, verifies the employer from the pay slip, and can confirm regular income at the click of a button. Yet they still demand guarantors and collateral before offering even a modest facility. What then is the essence of banking if verified income is not enough to build trust? This rigid credit culture is not just unfair — it’s economically counterproductive. Denying credit to people with verifiable employment means stifling productivity at the very point where individuals are most motivated to deliver. A newly employed worker who cannot afford basic logistics — accommodation close to the workplace, a means of transport, or work tools — is less productive and more stressed. The other side of the problem lies with employers. Many organizations refuse to issue letters of undertaking on behalf of newly employed staff within their first six months, citing probationary status as the reason. But this approach is self-defeating. How can a young professional perform well during probation when he has no stable place to live, or must commute long distances daily under severe financial strain? If the goal of probation is to test competence and commitment, then denying workers the basic means to function only sets them up to fail. The Trade Union Congress (TUC), and the Minister for Employment and Labor Relations, must all step in to address this. They can impress upon employers — especially those in the formal public and private sectors — to collaborate with banks and develop Probation Credit Schemes that would allow new employees who genuinely need essential logistics such as rent support, transportation, or basic appliances to access small, structured credit backed by employer verification. In countries with advanced financial systems, credit works because of trust and data. Lenders don’t rely on physical collateral or guarantors; they rely on digital verification. Employment data, income level, and credit history are all interlinked, creating a system where banks can assess risk instantly and confidently. Ghana can build this too — and we must. The Bank of Ghana, financial policymakers, and credit bureaus can take bold steps to bridge this gap and modernize the credit ecosystem. Here’s how: Create a national employment verification platform – Allow banks to digitally confirm the employment and income of workers in real time, especially public sector and formal private workers. This reduces fraud and builds trust. Design ‘Starter Credit’ products – Encourage banks to design low-limit, probation-friendly credit facilities (for example, up to three months’ net salary) for new employees. Repayment can be structured around payroll deductions to minimize default. Integrate payroll and credit systems – With employer consent, repayments should be automated directly from salaries — making lending safer for banks and stress-free for borrowers. Expand credit scoring frameworks – Credit bureaus should introduce a “First Employment Credit Rating” — allowing individuals to build a financial identity from the first day they start earning. Banks themselves need to evolve beyond the outdated “guarantor and collateral” mindset. The real collateral of today is verified income, not a relative’s house or signature. By lending smartly to newly employed workers, banks can cultivate long-term, loyal customers while fueling inclusive growth. If Ghana wants to create an economy where youth employment translates into economic independence, our credit system must stop punishing new beginnings. Employment should be a springboard — not another waiting room for financial opportunity. The time to act is now. >>>the writer is a financial economist. He writes on financial inclusion, investment, and governance reforms in Ghana. He can be reached via [email protected] and or 0248803710
