TransUnion Africa, in partnership with MTN and its digital platform business, Chenosis, has launched TransUnion Telco Data Score, a new credit scoring solution that uses mobile phone call data records to help South Africans with limited or no formal credit history gain access to financial services.
The alternative data scoring model leverages call data records (CDR), which reflect patterns in mobile phone network usage behaviour and correlates it to an individual’s financial behaviour.
By using telco data as a proxy for financial reliability, the TransUnion Telco Data Score enables lenders to accurately assess new-to-credit (NTC) consumers and expand access to safe, affordable credit.
According to TransUnion estimates, more than 1,4 million credit-invisible South Africans open new credit accounts each year, contributing to more than 4-million new accounts over the past three years. Yet traditional scoring models often fail to assess this segment accurately, leaving more than 16-million adults outside the formal credit system.
Approximately 35% of NTC consumers are under the age of 25, many of them new to the workforce and often use credit to buy clothing for work, highlighting the need for innovative tools that support younger, digitally active individuals who may lack a conventional credit footprint.
Successfully integrating these and other excluded consumers into the economy could add approximately R173-billion to South Africa’s GDP.
“With over 500-million people across the continent excluded from formal financial systems, the scale of the challenge is undeniable. Traditional data models fail to reflect the realities of African consumers, leaving millions without access to credit and the opportunities it enables. Financial inclusion isn’t just part of our mission, it’s our mandate,” says Lee Naik, CEO of TransUnion Africa.
“That’s why we believe the only way forward is to think differently, to lead with bold, African-born solutions. Innovations like TransUnion Telco Data Score, designed for Africa, by Africa, are helping us responsibly harness mobile data at scale. In doing so, we’re not only expanding access to credit, but we’re also unlocking economic potential, accelerating inclusive growth, and reshaping the future of finance across the continent.”
The use of CDR data is subject to explicit consumer consent and is managed in compliance with South Africa’s Protection of Personal Information Act (POPIA). MTN is responsible for consent management and ensuring that Chenosis, MTN’s API marketplace, facilitates the connection between MTN’s data ecosystem and partners like TransUnion in a secure and scalable manner.
“This partnership demonstrates how mobile technology and secure data sharing can support positive change in the financial sector and unlock new opportunities for millions of South Africans,” says Selorm Adadevoh, group chief commercial officer of the MTN Group. “We are committed to ensuring that data is used responsibly, with the customer’s interests at the forefront. This is a model of what responsible innovation can look like.”
For lenders, the TransUnion Telco Data Score has demonstrated a 25% to 35% improvement in predictive performance over previous alternative data models, based on recent pre-launch validations across the retail and banking sectors.
The product also helps NTC consumers establish and build their credit footprint over time. According to TransUnion data, low-risk individuals significantly increase their credit exposure within 18 months of becoming credit active, underscoring the long-term benefits of responsible financial inclusion strategies.
“With Chenosis, we enable collaboration between mobile operators and solution providers while maintaining high security and compliance standards,” says Waseem Amra, head of products and platforms at Chenosis. “This partnership highlights how secure data access can support innovation in financial services that can transform lives.”