Global data and technology company Experian has unveiled its latest advancements in AI, machine learning, and alternative data aimed at transforming credit risk assessment in South Africa.
With a significant number of South African adults still outside the formal credit system, access to loans, business funding, and financial security remains a challenge.
AI-driven tools give lenders the ability to assess and serve these previously underserved consumers, opening the door to broader economic participation.
“South Africa’s financial services sector is evolving at an incredible pace, driven by new data sources and advanced analytical capabilities,” says Ferdie Pieterse, CEO of Experian. “Today, we demonstrated how Experian is at the forefront of this transformation, providing tools that meet the immediate needs of financial institutions and anticipate the future demands of consumers.
“These innovations empower lenders to serve previously underserved segments of the market with confidence. We believe they will help rewrite the rules of risk assessment in South Africa, where many have been invisible to the credit system.”
At its recent Summit, Experian highlighted three core areas of innovation:
Transactional Insights
Trusso, Experian’s automated categorisation engine, transforms detailed transaction data into aggregated attributes and variables that enable hyper-personalised consumer research, more accurate income and affordability assessments, and alternative risk models for consumers and MSMEs with limited access to traditional credit. Operating with explicit consumer consent, Trusso offers a powerful alternative to less predictive data sources.
“Trusso instantly splits the bank account transaction data into detailed income and expenditure categories, deriving rich variables used to calculate transaction-based risk scores,” says Francois Grobler, chief of decision analytics at Experian. “This enables lenders to confidently assess risk and accurately determine affordability through insights like income verification and monthly disposable income, with predictive strength remarkably close to a normal credit score.”
Next-Generation Bureau Scores
The new suite of bureau scores represents a significant leap forward, offering enhanced predictive power and flexibility. Clients can now choose between traditional logistic regression models and advanced Machine Learning (ML) models, with ML offering superior predictive capabilities. These scores incorporate Experian’s unique trended and premier attributes, developed in-house, providing additional predictive accuracy.
This innovation aligns with Forrester’s latest research findings that 93% of South African organisations using ML have improved credit card acceptance rates, and 89% have reduced bad debt rates, highlighting ML’s strategic advantage in credit underwriting.
“Our new bureau scores, with their dual methodology and proprietary attributes, are a testament to our commitment to rapid, accurate and impactful model deployment, enabling businesses to refine their credit risk strategies faster than ever before,” Grobler adds.
ExperiFin – A Two-Sided Marketplace for Funding Solutions
ExperiFin is a comprehensive platform developed in partnership with Finfind, which provides online access to finance solution for micro, small and medium enterprises (MSMEs).
ExperiFin streamlines the funding ecosystem through its Funder Portal (supply side), which empowers credit providers to assess demand and receive qualified leads matching their criteria, and its Application Portal (demand side), offering a reconfigured, streamlined process for applicants to quickly receive a funding probability measure using alternative data and automation. ExperiFin also provides flexible white-label options for funders.
“ExperiFin is a game-changer for financial inclusion, fundamentally reshaping how funding flows in South Africa. By partnering with Finfind, we’ve created a seamless, intelligent marketplace that truly powers opportunities – connecting applicants with the right funders faster, and empowering lenders to optimise their portfolios with unparalleled efficiency. It’s about turning complex financial needs into simple, accessible solutions,” says Jaco van Jaarsveldt, head of strategy and innovation at Experian.