TransUnion and FICO Partner to Introduce Groundbreaking Risk Solutions to Kenya to Expand Credit Access
TransUnion Kenya and FICO have partnered to launch innovative risk solutions aimed at expanding credit access in Kenya. The partnership introduces two key solutions: CreditVision® Variables and the FICO® Score.
CreditVision Variables analyzes over 145 data sources and up to 24 months of payment history, while the new FICO Score is specifically built for the Kenyan market using over 4 million records. In global markets, lenders using CreditVision Variables have seen 20-30% improvement in risk predictability and 15-20% increase in approval rates.
The FICO Score, ranging from 300 to 850, provides a numerical snapshot of consumer credit risk, with higher scores indicating lower risk. The solution is particularly relevant for Kenya's market, where 95% of scoreable consumers have at least one microlending tradeline. According to TransUnion's Q2 2024 study, 36% of Kenyan consumers felt they had sufficient credit access, up from 33% the previous year.
TransUnion Kenya e FICO hanno collaborato per lanciare soluzioni innovative per il rischio, mirate ad ampliare l'accesso al credito in Kenya. La partnership introduce due soluzioni chiave: CreditVision® Variables e il FICO® Score.
CreditVision Variables analizza oltre 145 fonti di dati e fino a 24 mesi di storia dei pagamenti, mentre il nuovo FICO Score è specificamente progettato per il mercato keniota utilizzando oltre 4 milioni di record. Nei mercati globali, i finanziatori che utilizzano CreditVision Variables hanno registrato un miglioramento del 20-30% nella prevedibilità del rischio e un aumento del 15-20% nei tassi di approvazione.
Il FICO Score, che va da 300 a 850, fornisce un'istantanea numerica del rischio di credito dei consumatori, con punteggi più alti che indicano un rischio inferiore. La soluzione è particolarmente rilevante per il mercato keniota, dove il 95% dei consumatori valutabili ha almeno una linea di credito microlending. Secondo lo studio di TransUnion del secondo trimestre 2024, il 36% dei consumatori kenioti riteneva di avere un accesso al credito sufficiente, rispetto al 33% dell'anno precedente.
TransUnion Kenya y FICO se han asociado para lanzar soluciones innovadoras de riesgo con el objetivo de ampliar el acceso al crédito en Kenia. La asociación presenta dos soluciones clave: CreditVision® Variables y el FICO® Score.
CreditVision Variables analiza más de 145 fuentes de datos y hasta 24 meses de historial de pagos, mientras que el nuevo FICO Score está diseñado específicamente para el mercado keniano utilizando más de 4 millones de registros. En los mercados globales, los prestamistas que utilizan CreditVision Variables han visto una mejora del 20-30% en la predictibilidad del riesgo y un aumento del 15-20% en las tasas de aprobación.
El FICO Score, que varía de 300 a 850, proporciona una instantánea numérica del riesgo crediticio del consumidor, con puntuaciones más altas que indican un menor riesgo. La solución es particularmente relevante para el mercado de Kenia, donde el 95% de los consumidores que pueden ser evaluados tienen al menos una línea de crédito de microlending. Según el estudio de TransUnion del segundo trimestre de 2024, el 36% de los consumidores keniatas sentía que tenía acceso suficiente al crédito, frente al 33% del año anterior.
TransUnion 케냐와 FICO가 협력하여 케냐에서 신용 접근성을 확대하기 위한 혁신적인 위험 솔루션을 출시했습니다. 이 파트너십은 두 가지 주요 솔루션인 CreditVision® Variables와 FICO® Score를 도입합니다.
CreditVision Variables는 145개 이상의 데이터 소스와 최대 24개월의 지불 이력을 분석하며, 새로운 FICO Score는 400만 개 이상의 기록을 사용하여 케냐 시장을 위해 특별히 설계되었습니다. 글로벌 시장에서 CreditVision Variables를 사용하는 대출자는 위험 예측 가능성이 20-30% 향상되고 승인율이 15-20% 증가했습니다.
300에서 850까지의 범위를 갖는 FICO Score는 소비자 신용 위험의 수치적 스냅샷을 제공하며, 높은 점수는 낮은 위험을 나타냅니다. 이 솔루션은 95%의 평가 가능한 소비자가 최소한 하나의 마이크로 대출 거래선을 가지고 있는 케냐 시장에 특히 관련이 있습니다. TransUnion의 2024년 2분기 연구에 따르면, 36%의 케냐 소비자가 충분한 신용 접근성을 가지고 있다고 느꼈으며, 이는 전년도 33%에서 증가한 수치입니다.
TransUnion Kenya et FICO ont formé un partenariat pour lancer des solutions de risque innovantes visant à élargir l'accès au crédit au Kenya. Ce partenariat introduit deux solutions clés : CreditVision® Variables et le FICO® Score.
CreditVision Variables analyse plus de 145 sources de données et jusqu'à 24 mois d'historique de paiements, tandis que le nouveau FICO Score est spécifiquement conçu pour le marché kenyan en utilisant plus de 4 millions de dossiers. Sur les marchés mondiaux, les prêteurs utilisant CreditVision Variables ont constaté une amélioration de 20 à 30 % de la prévisibilité des risques et une augmentation de 15 à 20 % des taux d'approbation.
Le FICO Score, qui varie de 300 à 850, fournit un aperçu numérique du risque de crédit des consommateurs, des scores plus élevés indiquant un risque plus faible. La solution est particulièrement pertinente pour le marché du Kenya, où 95 % des consommateurs éligibles ont au moins une ligne de crédit de microcrédit. Selon l'étude de TransUnion du deuxième trimestre 2024, 36 % des consommateurs kenyans estiment avoir un accès suffisant au crédit, contre 33 % l'année précédente.
TransUnion Kenya und FICO haben eine Partnerschaft geschlossen, um innovative Risikolösungen zu lancieren, die darauf abzielen, den Zugang zu Krediten in Kenia zu erweitern. Die Partnerschaft führt zwei zentrale Lösungen ein: CreditVision® Variables und den FICO® Score.
CreditVision Variables analysiert über 145 Datenquellen und bis zu 24 Monate Zahlungshistorie, während der neue FICO Score speziell für den kenianischen Markt entwickelt wurde und über 4 Millionen Datensätze nutzt. In globalen Märkten haben Kreditgeber, die CreditVision Variables verwenden, eine Verbesserung der Risikovorhersagbarkeit um 20-30% und einen Anstieg der Genehmigungsraten um 15-20% festgestellt.
Der FICO Score, der von 300 bis 850 reicht, bietet einen numerischen Überblick über das Kreditrisiko der Verbraucher, wobei höhere Werte ein geringeres Risiko anzeigen. Die Lösung ist besonders relevant für den kenianischen Markt, wo 95% der bewertbaren Verbraucher mindestens eine Microlending-Kreditlinie haben. Laut der TransUnion-Studie für das zweite Quartal 2024 fühlten sich 36% der kenianischen Verbraucher, als hätten sie ausreichenden Zugang zu Krediten, ein Anstieg gegenüber 33% im Vorjahr.
- Partnership expected to improve risk predictability by 20-30%
- Potential to increase approval rates by 15-20%
- Analysis of over 145 data sources enhances risk assessment
- Solution specifically tailored for Kenyan market using 4 million records
- None.
Insights
This strategic partnership marks a significant expansion of FICO's emerging markets footprint, particularly noteworthy given Kenya's position as East Africa's financial hub. The implementation of FICO's proprietary scoring technology, combined with TransUnion's extensive data infrastructure, creates a powerful recurring revenue opportunity in the rapidly growing African financial services sector.
The solution's demonstrated ability to improve risk predictability by
The partnership leverages FICO's proven scoring methodology while allowing for market-specific customization, creating a scalable model that could be replicated across other emerging markets. The integration of 145 data sources and 24-month historical analysis capabilities provides a substantial competitive moat, making it difficult for new entrants to replicate this comprehensive risk assessment infrastructure.
For investors, this represents a strategic expansion of FICO's total addressable market, with potential for strong margin expansion as the scoring system scales across the region. The partnership model with TransUnion reduces capital requirements while maintaining high-margin recurring revenue streams typical of FICO's scoring business.
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TransUnion Kenya is leveraging its CreditVision Variables solution and FICO partnership to redefine risk management and help expand access to financial services across
Kenya - By integrating enriched data and advanced analytics, TransUnion Kenya and FICO are empowering lenders to serve previously underserved individuals and SMMEs, building financial inclusion and economic growth
The two new solutions at the heart of this transformation are TransUnion’s CreditVision® Variables solution and the FICO® Score. Together, they address critical challenges in risk assessment and financial inclusion. CreditVision Variables provides an enhanced view of consumer financial behaviour, analysing over 145 data sources and up to 24 months of historical payment data. The new FICO Score is built for the Kenyan market using proprietary predictive analytics technology and over 4 million records from the TransUnion database.
Enhancing traditional credit risk strategies with the FICO Score and comprehensive data analysis can improve risk predictability and enable lenders to extend financial services to more consumers. In other global markets, lenders integrating CreditVision Variables into their credit risk strategies have experienced a significant boost in risk predictability by
CreditVision Variables can address essential business needs by:
- Cost-effectively identifying and engaging the right new customers
- Growing and optimising the profitability of existing customers
- Providing insights into customer motivations and behaviours
“The effects of these innovations are expected to be profound. Consumers, Small, Micro and Medium-sized Enterprises (SMMEs) and other businesses can benefit from greater access to credit and financial services, enabling them to improve their financial health and achieve their goals. Lenders will have access to better risk management and decision-making tools, leading to greater financial inclusion and economic empowerment, and driving more sustainable overall economic growth and stability,” said Morris Maina, CEO of TransUnion Kenya.
TransUnion has partnered with global analytics software pioneer FICO across
The FICO Score is the latest evolution of credit scoring for the Kenyan market and has been designed to reflect the rapidly evolving lending ecosystem, where microlending, in particular, is more embedded than before. This single credit risk score provides lenders with a more granular and effective means of credit risk assessment, enabling a more accurate understanding of borrowers, and provides a significant boost in predictive power across all forms of lending. The predictive power of the new
Benefits of using the FICO Score include:
- A single credit score to help lenders make credit decisions across both traditional credit products and microlending, including mobile loans
- Rapid approval/decline decisions for new applicants, reducing friction at the acquisition stage
- Refined allocation of credit limits and loan amounts
- Consistent risk-based pricing and terms of business
- Improved risk management, giving lenders the confidence to make more credit available while controlling losses
- Greater efficiency using a single score across both traditional and digital lending channels
The FICO Score is a numerical snapshot of a consumer’s credit risk, providing a measure of their likelihood of fulfilling credit obligations. Using data from TransUnion, the model generates a score ranging from 300 to 850, where the higher scores indicate lower credit risk. Each credit score comes with the top four reasons for its calculation, offering transparency and actionable insights into factors impacting the score. The score is calculated on request by the lender and uses the latest information in the TransUnion file.
“This level of transparency aids both lending officers and consumers,” said Mike Manaton, Vice President of Scores at FICO. “The FICO Score provides clear insights into the factors influencing a consumer’s score. Additionally, it enables lenders to assess applicants more accurately, tailor credit terms accordingly and enable credit access for more consumers.”
An example of the power of the FICO Score is the distribution of accounts across the score range. The risk decreases sharply as the score rises, with consumers scoring in the highest-risk decile (300-442) representing about nine times the risk of consumers scoring in the lowest-risk decile (682-850).
According to TransUnion's Q2 2024 Consumer Pulse Study, financial inclusion in
"We welcome this global innovation in
Discover more about CreditVision Variables here and the FICO Score here.
Supporting industry quotes:
“TransUnion Kenya's and FICO’s new credit risk solutions are a game-changer for the region. At CIS Kenya, we believe these innovative solutions will empower businesses to make more informed decisions and drive economic growth." Jared Getenga, Chief Executive Officer, Credit Information Sharing Association of
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries, including
Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world.
For more information visit: www.transunionafrica.com
About FICO® Scores
Over the past 35 years, FICO has brought global standard credit scoring to more than 40 countries across 5 continents. The introduction of broad-based credit scores has helped transform economic growth in many countries — promoting credit access to credit-ready borrowers while supporting financial stability and enabling credit risk decisions. FICO scoring solutions bring a combination of lending analytics and global market experience to augment regional credit risk strategies while focusing on lender goals and market challenges.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by
Learn more at https://www.fico.com.
FICO is a registered trademark of Fair Isaac Corporation in the
View source version on businesswire.com: https://www.businesswire.com/news/home/20250218985377/en/
Media Contacts:
FICO
Wendy Harrison/Parm Heer
ficoteam@harrisonsadler.com
FICO US PR Team
Julie Huang
press@fico.com
TransUnion Kenya
Natassia Badenhorst
Natassia.badenhorst@transunion.com
Source: FICO
FAQ
What improvements in risk predictability can lenders expect from TransUnion and FICO's new solution?
What is the range of the new FICO Score for Kenya?
How many data sources does TransUnion's CreditVision Variables analyze?
What percentage of Kenyan consumers had sufficient credit access in Q2 2024?
What percentage of scoreable consumers in Kenya have microlending tradelines?
