A new credit scoring tool developed by MTN, its digital platform Chenosis, and TransUnion Africa is set to change how millions of South Africans gain access to credit. The solution, called TransUnion Telco Data Score, uses mobile phone call data to assess financial reliability, giving lenders a new way to evaluate people with little or no credit history.
This scoring model leverages Call Data Records (CDRs), patterns in mobile phone usage such as call frequency, duration, and recharge behaviour, to help predict how individuals manage money. By using telco data as a proxy for creditworthiness, the tool gives lenders a better way to assess new-to-credit (NTC) consumers who would otherwise be excluded under traditional models.
“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,” said Lee Naik, CEO of TransUnion Africa.
Each year, more than 1.4 million South Africans without formal credit histories open new accounts. Over the last three years, this group has contributed to more than four million new credit accounts. Yet, standard credit scoring methods often fail to assess this population accurately, leaving over 16 million adults without access to formal credit.
Young adults are particularly affected. TransUnion estimates that 35% of NTC consumers are under 25. Many are just entering the workforce, often using credit to buy essentials like clothing for work. Bringing these excluded individuals into the financial system could add an estimated R173 billion to South Africa’s GDP.
Importantly, the system operates with consumer privacy protections in place. The use of mobile data is based on explicit customer consent and is governed by South Africa’s Protection of Personal Information Act (POPIA). MTN is responsible for managing this consent and ensures the secure sharing of data through Chenosis, its API platform.
“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. 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,” said Selorm Adadevoh, Group Chief Commercial Officer, MTN Group.
For lenders, the TransUnion Telco Data Score has already shown strong results, with a 25–35% improvement in accuracy over earlier alternative models, based on pre-launch validations across the retail and banking sectors. Lenders can use the tool to better predict loan performance, avoid overexposing high-risk borrowers, and support more responsible credit decisions.
Low-risk borrowers tend to significantly grow their credit activity within 18 months of becoming formally credit active, according to TransUnion. That means tools like the Telco Data Score not only open access but also help consumers build lasting credit profiles.
“With Chenosis, we enable collaboration between mobile operators and solution providers while maintaining high security and compliance standards. This partnership highlights how secure data access can support innovation in financial services that can transform lives,” said Waseem Amra, Head of Products and Platforms, Chenosis.
By incorporating mobile data into credit scoring, the partnership offers a scalable, privacy-conscious way to improve access to finance. It also reflects a growing trend in Africa toward designing homegrown digital solutions that close financial gaps.
“With this inclusive innovation, TransUnion has taken the lead in creating an impactful solution to one of the continent’s most pressing challenges – finding responsible pathways to greater financial inclusion that will unlock opportunities for individual and national growth,” said Naik. “Together with MTN and Chenosis, we are building a future where every South African, regardless of their financial history, has the chance to be seen, to be trusted, and to thrive.”
