TransUnion Kenya and analytics software firm FICO have joined hands to enhance risk management and increase access to credit.
This is aimed at facilitating lenders’ decision-making process, fostering financial inclusion in Kenya.
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The initiative involves the use of TransUnion’s CreditVision Variables solution and the FICO Score, to counter risk assessment and financial inclusion hurdles.
CreditVision Variables provides an improved insight about the financial behaviour of consumers. This is done through the assessment ofover 145 data sources as well as up to 24 months of historical payment data.
On the other hand, the new FICO Score is said to have been customised for the Kenyan market and utilises proprietary predictive analytics technology in addition to over four million records from the TransUnion database.
By strengthening traditional credit risk strategies with the FICO Score and comprehensive data assessment, lenders can boost risk predictability and extend financial services to a broader consumer base.
Since 1997, TransUnion has collaborated with FICO across Africa.
The two firms are now deepening their ties to offer FICO’s scoring models tailored to the Kenyan market.
The aim is to help lenders effectively handle portfolio risk and monitor credit activity, thereby enhancing credit-granting processes.
TransUnion Kenya CEO Morris Maina said: “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.”
