By In a groundbreaking move towards financial inclusion TransUnion Africa has launched the TransUnion Telco Data Score a pioneering credit scoring solution that leverages mobile phone call data to assess the creditworthiness of millions of South Africans. Developed in partnership with MTN and its digital platform, Chenosis. This innovative model aims to bridge the gap for those traditionally excluded from formal financial systems.
By utilising Call Data Records (CDR)—which capture patterns in mobile network usage—this alternative scoring method provides a proxy for financial reliability, enabling lenders to better evaluate individuals with limited or no formal credit history. This shift is especially significant given that over 16 million South African adults remain outside the reach of conventional credit assessments with more than 1.4 million new credit-invisible consumers each year.
The need for such innovation is pronounced among younger consumers many under 25 who often use credit for essentials like clothing for work but lack a formal credit footprint. Incorporating telco data not only broadens financial access but also has the potential to add approximately R173 billion to South Africa’s GDP by integrating more citizens into the economy.
“Traditional data models often fail to reflect the realities of African consumers,” said Lee Naik, CEO of TransUnion Africa. “Our Telco Data Score is designed for Africa, by Africa harnessing mobile data responsibly to unlock economic potential, accelerate inclusive growth, and reshape the future of finance across the continent.”
Importantly, the approach is built on strict consent and compliance aligning with South Africa’s Protection of Personal Information Act (POPIA). MTN manages consumer consent ensuring data sharing remains secure and respectful of individual privacy.
Lenders stand to benefit significantly with validations indicating a 25–35% improvement in predictive accuracy over previous models. This enables more responsible lending minimising risk while supporting consumers’ long-term financial growth. Notably data show that low-risk individuals significantly increase their credit exposure within 18 months illustrating the model’s potential to foster sustainable financial development.
“This partnership demonstrates how mobile technology and secure data sharing can create positive change,” said Selorm Adadevoh, Group Chief Commercial Officer at MTN. “We’re committed to responsible innovation that prioritizes customer interests.”
As the financial landscape evolves this initiative exemplifies how diverse data sources like mobile call records can expand access while upholding privacy standards. “We’re setting a new standard,” Naik concluded, “building a future where every South African, regardless of their credit history, has the opportunity to be seen, trusted, and thrive.”