MTN Launches South Africa’s First Telco-Based Credit Score

MTN has made a major move in the financial sector by launching South Africa’s First Telco-Based Credit Score, a new way to help millions of people get access to credit and financial services. This innovation comes from a partnership between MTN, its digital platform business Chenosis, and TransUnion Africa. The solution, called the TransUnion Telco Data Score, is the first of its kind in South Africa and uses mobile phone call data records to create a credit score for people who don’t have a traditional credit history.

Many South Africans, especially young people and those working in the informal sector, struggle to get loans or open accounts because they don’t have a formal credit record. Traditional credit scoring relies on things like bank loans, credit cards, or store accounts, but if you mostly use cash or have never borrowed before, you’re left out. In fact, over 16 million adults in South Africa are outside the formal credit system, and about 1.4 million people try to open new credit accounts each year without a proper credit history.

MTN Launches South Africa’s First Telco-Based Credit Score to solve this problem. Instead of looking at bank records, this system uses Call Data Records (CDR), information about how often you use your phone, buy airtime or data, and other patterns in your mobile usage. These patterns can give a good idea of how responsible and reliable someone is with their money. By using this telco data, lenders can now assess people who are “New-to-Credit”, those who have never had a loan or credit card before, and offer them access to safe and affordable credit.

This new approach is especially important for young people. About 35% of New-to-Credit consumers are under 25, many of whom are just starting their careers and need credit for things like buying work clothes. By including them in the formal financial system, South Africa’s First Telco-Based Credit Score could help add around R173 billion to the country’s economy.

Privacy and consent are key parts of this system. MTN makes sure that your data is only used if you give permission, and everything is managed under South Africa’s strict Protection of Personal Information Act (POPIA). Chenosis, MTN’s API marketplace, helps connect MTN’s data securely with partners like TransUnion.

For lenders, the benefits are clear. Early tests show that the TransUnion Telco Data Score is 25–35% better at predicting who will repay their loans compared to older alternative data models. This helps banks and other lenders make better decisions, reduce their risks, and avoid giving too much credit to people who might struggle to pay it back.

MTN South Africa’s First Telco-Based Credit Score is not just about helping banks, it’s about giving more people the chance to build a financial future. As people use credit responsibly, their score improves, opening up even more opportunities over time. The partnership between MTN, Chenosis, and TransUnion shows how technology and secure data sharing can change lives and boost the economy by making financial services available to everyone, not just those with a long credit history.

By launching South Africa’s First Telco-Based Credit Score, MTN is setting a new standard for financial inclusion, showing how mobile data can be used in smart ways to unlock opportunities for millions of South Africans.

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