A pioneering credit assessment tool leveraging mobile phone usage patterns launched in South Africa this week, offering millions without formal banking histories access to financial services.
The TransUnion Telco Data Score analyzes call duration, frequency and airtime purchase behavior to evaluate creditworthiness, marking a significant advancement in financial inclusion efforts across the continent.
Developed through collaboration between MTN, its API platform Chenosis and TransUnion Africa, the system addresses a critical gap in traditional credit scoring models. “Over 500 million Africans remain excluded from formal financial systems due to outdated assessment methods,” said TransUnion Africa CEO Lee Naik. Early testing shows the tool improves credit decision accuracy by 25-35% compared to conventional models, particularly for young adults entering the financial system.
The innovation operates under strict privacy protocols mandated by South Africa’s Protection of Personal Information Act. MTN Group Chief Commercial Officer Selorm Adadevoh emphasized the responsible implementation: “Customers must provide explicit consent before their mobile data contributes to credit assessments, with all information securely transmitted through our Chenosis platform.”
Economists project the tool could add R173 billion to South Africa’s GDP by bringing previously excluded populations into the formal credit economy. The solution arrives as mobile penetration outpaces traditional banking access across Africa, creating opportunities for context-specific financial technologies.
“This partnership demonstrates how secure data collaboration can drive meaningful inclusion,” said Chenosis Head of Products Waseem Amra. The launch signals a broader shift toward alternative credit assessment models designed for Africa’s unique financial landscape, where mobile usage patterns often provide more reliable indicators of financial behavior than conventional banking records.
