The transformative tools driving this change are TransUnion’s CreditVision Variables solution and the FICO Score. These innovations target critical challenges in risk assessment and financial inclusion. The CreditVision Variables solution offers a deeper understanding of consumer financial behaviour, analyzing over 145 data sources and 24 months of payment history. Meanwhile, the new FICO Score, tailored specifically for Kenya, utilizes proprietary predictive analytics technology and over 4 million records from the TransUnion database
TransUnion Kenya, a leading global information and insights company, in collaboration with global analytics software innovator FICO, is spearheading a transformative shift in Kenya’s financial sector. By introducing cutting-edge risk solutions, they aim to widen access to credit and empower financial institutions to make more informed, data-driven decisions. This collaboration promises to create a more inclusive and resilient financial ecosystem that drives greater economic empowerment.
The transformative tools driving this change are TransUnion’s CreditVision Variables solution and the FICO Score. These innovations target critical challenges in risk assessment and financial inclusion. The CreditVision Variables solution offers a deeper understanding of consumer financial behaviour, analyzing over 145 data sources and 24 months of payment history. Meanwhile, the new FICO Score, tailored specifically for Kenya, utilizes proprietary predictive analytics technology and over 4 million records from the TransUnion database.
By enhancing traditional credit risk models with these advanced solutions, lenders can improve risk prediction, extend financial services to more consumers, and increase approval rates. In other global markets, the integration of CreditVision Variables into credit strategies has led to a 20%-30% improvement in risk predictability and a 15%-20% boost in approval rates.
According to Morris Maina, CEO of TransUnion Kenya, “The impact of these innovations will be transformative. Consumers, Small, Micro, and Medium-sized Enterprises (SMMEs), and businesses across Kenya will benefit from better access to credit, leading to enhanced financial health and progress toward achieving their goals. Lenders will also gain improved risk management tools, driving broader financial inclusion, economic empowerment, and overall stability in the economy.”
TransUnion and FICO’s partnership across Africa since 1997 has expanded to Kenya, bringing FICO’s advanced scoring models to meet the local market’s needs. This collaboration aims to improve credit-granting processes by equipping lenders with tools to manage portfolio risk and monitor credit activity more effectively.
The new FICO Score is designed to meet the demands of Kenya’s rapidly evolving lending ecosystem, with a particular focus on microlending, which has become increasingly embedded. The single credit risk score offers lenders a detailed and accurate understanding of borrowers, providing enhanced predictive power for all forms of lending, especially microlending—where 95% of scoreable consumers have at least one tradeline.
John Gachora, Chairman of the Kenya Bankers Association (KBA), highlighted the importance of this innovation: “We welcome this global advancement in Kenya, and we are confident that these solutions will help drive the country’s financial inclusion agenda. Financial inclusion is a critical factor for economic growth and empowering communities, and embracing these new technologies will help ensure broader access to financial services, contributing to sustainable development and prosperity for all.”
This partnership between TransUnion and FICO signals an exciting step forward in Kenya’s financial sector, with lasting impacts on credit access, financial inclusion, and economic stability.
