In partnership with TransUnion Africa and its digital platform Chenosis, MTN launched South Africa’s first telco-based credit score on Tuesday.
This groundbreaking service uses mobile phone call data records (CDR) to help millions of South Africans without formal credit histories access financial services.
The innovation promises to unlock credit opportunities for those traditionally excluded from the formal financial system.
Telco data score: A new way to measure creditworthiness
The TransUnion Telco Data Score leverages patterns in mobile phone usage, such as airtime purchases, call durations, and network behaviour, to predict financial reliability.
This alternative credit scoring model benefits New-to-Credit consumers who lack traditional credit footprints.
Lenders can make more accurate decisions by analysing 146 data markers from prepaid subscribers, improving approval rates while managing risk.
“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,” said Selorm Adadevoh, MTN Group’s Chief Commercial Officer.
The score has shown a 25–35 per centimprovement in predictive performance compared to previous alternative data models, enhancing responsible lending practices.
Consent, security, and economic impact
Using sensitive call data records is strictly regulated under South Africa’s Protection of Personal Information Act (POPIA) and the RICA law.
MTN manages consumer consent, ensuring data is used responsibly and securely. TransUnion emphasised its multi-layered security program to protect against fraud and cyber threats.
TransUnion Africa’s CEO, Lee Naik, highlighted the economic potential: “Bringing an additional 16 million financially excluded South Africans into the formal economy could add R173 billion to GDP.”
The new credit score also supports small and medium enterprises by giving lenders better insights into their creditworthiness, reducing dependence on high-interest informal loans.
This telco-powered credit score is a first in Africa and could serve as a model for expanding financial inclusion across the continent, tapping into the widespread use of mobile phones and increasing smartphone penetration.
About TransUnion Africa
TransUnion Africa has a long-standing presence in Southern Africa, dating back to 1901, and operates across eight countries, including South Africa, Kenya, Botswana, Namibia, Rwanda, Swaziland, Zambia, and Malawi.
The company provides various services, such as credit bureau operations, analytic and decision services, and auto information solutions. Beyond credit reporting, TransUnion offers tools to help consumers understand their credit history and protect against fraud while supporting businesses with data-driven decision-making solutions.
In 2011, TransUnion expanded its footprint by acquiring CRB Holdings Limited, broadening its reach into East and Southern Africa markets and enhancing its credit risk management capabilities.