TransUnion Philippines (TransUnion) launched recently its new credit scoring solution CreditVision Link, which uses alternative and traditional credit data in credit scoring Filipinos.

TransUnion, an information and insights company, said that for this solution, it will be using telco data of new clients. The alternative data include reloads, payments, mobile data usage, and device data.

The technology allows lenders to expand their reach by accurately scoring even consumers with little to no formal credit data, which will be used for the processing of applications and optimizing acquisition strategies by gaining a more holistic view of new-to-credit (NTC) consumers.

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“CreditVision Link is the result of our continuously expanding database which includes alternative scoring partners and traditional credit bureau data to accurately represent even unbanked Filipinos, who comprise a majority of the population,” said Pia Arellano, president and CEO of TransUnion Philippines. “This solution benefits consumers and businesses alike and has the potential to build greater economic momentum in our country.”

Unbanked

In spite of the moves by financial services institutions to introduce products targeting the unbanked and underserved population of the Philippines, there are still 50 million Filipinos who remain unbanked (Bangko Sentral ng Pilipinas 2019 Financial Inclusion Survey) with 45% of the unbanked population resorting to borrowing money from non-bank sources.

With no other data sources to base credit scores, telco data will be sufficient indicators of new clients’ creditworthiness.

“We have established that telco alternative data can be powerful in predicting who will default in the next 90 days, especially on the unbanked, new-to-credit segments who were previously invisible,” said Pamela Reyes, head of TransUnion Philippines Solutions Group.

Data that can be used for clients using postpaid include payment pattern, call data records, internet usage, and balances. Filipinos use their data for practically everything: using apps for payments, ordering food, and banking, among others.

The introduction of CreditVision Link is to further strengthen credit scoring to drive more financial inclusion. TransUnion has logged around 60,000 new credit consumers monthly in the past years. The new solution aims to increase the new clients in the coming year.