Global information and insights company TransUnion Africa is pleased to announce the appointment of Dumisani Kadango as country manager for Malawi, effective as of November 2024. In his new role, Kadango will lead TransUnion’s Malawi growth strategy and strengthen the company’s presence in the region.

Kadango joins TransUnion Africa with a wealth of experience in the financial services sector, having held key roles at prominent organisations such as First Capital Bank, FDH Bank, and Nedbank. Most recently, he served in Business Development at NICO Asset Managers Limited, where he was instrumental in building strategic partnerships and advising on market trends and investment strategies. Kadango’s background in business development and relationship management positions him well to drive growth and build TransUnion’s brand presence in Malawi.

“We are thrilled to welcome Dumisani to TransUnion,” said Thabo Molefe, head of Africa regions, at TransUnion. “His deep industry knowledge and strategic insight will be vital in executing our Malawi strategy and driving our business forward. His passion for advancing financial inclusion aligns perfectly with our goals, and I am confident he will play a pivotal role in enhancing our offering to better serve the evolving needs of our customers and consumers in the region.”

Kadango holds a Bachelor of Business Science from IIE MSA (formerly Monash University) and an ACI Dealing Certificate from the Financial Markets Association, further supporting his comprehensive understanding of the financial sector.

“I am honoured to join TransUnion to lead the Malawi team at this exciting time,” said Kadango. “I look forward to building strong partnerships, enhancing our market position, and delivering on our commitment to trusted and innovative solutions for our clients and communities.”

Among all industries worldwide, the suspected digital fraud rate stood at 5.3%, up from 4.5% one year ago. Of all digital transactions made by consumers in Malawi, 3.5% were suspected to be fraudulent attempts in H1 2023.³

For transactions originating from Malawi, the financial services and retail sectors saw the highest suspected digital fraud attempt rate in H1 2023 at 8.7% and 7.6% respectively, with telecommunications in third at 6.3%.³

Even though the number of digital transactions in telecommunications in Malawi during H1 2023 declined by 11% from H1 2022, the rate of suspected digital fraud increased by more than six percentage points year-over-year (YoY), signaling clearly that this sector needs to invest in preventive fraud prevention measures. This was also highlighted recently when the Malawi Communications Authority revealed that K120million is lost every month through mobile money fraud, noting that the issue must be addressed collectively and with urgency.⁴

With a 38% growth in transaction volume, the financial services sector saw a 267% YoY increase in the rate of suspected digital fraud attempts made from Malawi, with the rate of suspected digital fraud attempts from Malawi in digital communities (online dating, forums, etc.) having increased by 12% YoY. The rate of suspected fraud attempts declined in the travel and leisure, retail, and gaming (online sports betting, poker etc.) industries.³

The significant increases in suspected digital fraud attempts, along with the increased adoption of digital transactions, indicate that Malawian businesses and consumers should seek meaningful solutions to prevent fraud. This is true even in sectors where attempted fraud rates declined, as threat actors adapt quickly to evolving environments to maximize the results of their attempts.

“It’s not enough to look at fraud rates alone when attempting to measure the impact of digital fraud on any one particular industry or another,” said Rodgers Lungu, business development lead for TransUnion Malawi. “There are other factors that need to be considered. These include the overall size of the industry in question, whether that industry is growing and if so, how quickly. Only then is it possible to develop a more comprehensive perspective on just how digital fraud is impacting these industries. In addition, this can help identify where fraudsters may be focusing their efforts in future.”

Financial Services Saw the Greatest YoY Growth in Digital Transactions

and the Highest Suspected Digital Fraud Rate in Malawi

^{Source: TransUnion TruValidateTM data}

^{*Video gaming was not included in Malawi’s reporting as volumes were statistically insignificant}

TransUnion came to its digital fraud findings based on intelligence from its identity and fraud product suite, TransUnion TruValidate which helps secure trust across channels and delivers efficient consumer experiences. The rate or percentage of suspected digital fraud attempts reflect interactions which TransUnion customers either denied in real time due to fraudulent indicators or determined to be fraudulent after a manual review process—compared to all transactions it assessed for fraud.

Download the Omnichannel Fraud in H1 2023 Infographic for more findings including the rate of suspected digital fraud from select countries and regions globally, and the growing problem of synthetic fraud. Specific country and regional data in the analysis include the United States, Brazil, Canada, Chile, Colombia, Dominican Republic, Hong Kong, India, Kenya, Mexico, Namibia, Philippines, Puerto Rico, Rwanda, South Africa, Spain, United Kingdom and Zambia.

Consumers who believe they may be a victim of fraud can find resources and information here.

^{1 Digital fraud involves the use of phishing emails, false websites, phony mobile apps, fake social media profiles, and other mechanisms to illegally obtain information and defraud consumers and businesses.}

^{2 The first half of the year or H1 refers to January 1 to June 30}

^{3 TransUnion TruValidate data}

^{4 Fraud threat to digital payment ecosystems – The Times Group}

What a difference a year makes. Last year at this time, we were looking forward to a 2020 filled with new opportunities and hope. Then Covid-19 came knocking. 12 months later, 2021 is looking very different, with many of us dealing with a range of financial, work and health stresses that we never could have imagined.

We know how to protect our health against the virus. Now we need to do the same with our finances – and one of the best ways of doing that is making sure we have a good credit rating, and managing our finances better.

So how do you provide yourself and your family with a stress-free year of finances? Here are a few tips to improve your credit score:

Know how much you owe

Check your credit limits on your loans, accounts, credit cards and overdrafts, and then see how much you owe on each of them. One of the best ways to improve your credit score is to decrease the amount of credit that you’re using. Make a plan to pay off as much of your outstanding balances as possible: it will reflect on your credit report, and ease the pressure on your finances.

Pay your bills on time

Another big no-no when it comes to a good credit report is late payments. The way to build a good credit history and credit score is to make regular and timely payments. If you have loans, accounts and credit cards, but your payment history is dragging down your score, dedicate the next year to meticulously making every payment on time. If you can pay more than the minimum payment in the process, that’s even better.

Check your credit report

You’re entitled to one free credit report every year. Use it. Contact TransUnion on 01 832 324, or email tumwsupport@transunion.com to obtain a free credit report, and go over it with a fine-toothed comb to check for inaccuracies, like accounts that you don’t recognise or incorrect information about late payments. Disputing this kind of inaccurate information, and getting it removed from your credit report, should improve your credit score.

Stick to a budget

Now that we’re limiting our exposure to public places and gatherings, it’s a good time to work on our budgets. Cook more at home, instead of going out. Use the money you’re saving on petrol to pay off some accounts. By budgeting and paying back your bills on time, you’ll be on your way to getting into great financial shape.

Molefe, the former executive director for South Africa & Rest of Africa for content and technology solutions provider LexisNexis, replaces Chad Reimers, who moves to a new position within TransUnion’s wider global business. Molefe will take responsibility for business development, stakeholder and regulatory engagement, and overall operations in seven countries in East and Southern Africa*.

Lee Naik, the chief executive officer of TransUnion Africa, said TransUnion’s wider Africa capability was ‘a critical part’ of the company’s portfolio growth strategy, and that he was looking forward to extending its offering under Molefe’s leadership.

“Thabo has extensive experience in growing markets across Africa and has a proven track record of high-level stakeholder engagement. We’re confident that he will be able to position TransUnion’s global information and insights capabilities to take our business to the next level in these key markets,” said Naik.

Molefe, who took up his new role on 24 August 2020, has deep knowledge of the African marketplace, having operated across the continent in a senior capacity for almost 20 years. He has previously fulfilled leadership roles at both LexisNexis and technology giant HP.

“TransUnion’s breadth and depth of data insights, and range of information solutions, are unmatched in this industry. I joined the company because I believe it has the potential to help even more African businesses make more informed decisions, and African consumers better manage their personal information and gain access to financial products and services,” said Molefe.

“I’m looking forward to deepening our relationships with clients, consumers and wider stakeholders, and helping the financial and digital lending communities establish trusted relationships and deliver great experiences and help create more economic opportunities.”

*_{Outside of South Africa, in East and Southern Africa TransUnion has operations in Kenya, Rwanda, Zambia, Namibia, Botswana, Eswatini, and Malawi.}

Cashless solutions like mobile lending and digital payments were already growing rapidly on the continent even before the pandemic struck. Now, we could see a scenario where the effects of COVID-19 on our society will create permanent changes in the way Africans use cards and cash, creating both opportunities and challenges for financial institutions, said Rodgers Lungu, CEO at TransUnion Malawi.

“Even in 2020, millions of people across sub-Saharan Africa still pay their bills and send money each month by drawing cash and physically going to a retailer or a bank to make payment or to receive grant payments. Now, their safety concerns mean they don’t want to make physical payments anymore, which means banks and FinTechs will have to rapidly roll out safer, contact-free payment methods,” said Lungu.

As markets prepare for life beyond the pandemic, digital transformation is becoming a key strategic initiative for financial institutions across both digital and traditional channels. Financial services providers will need to focus on offering payment and lending solutions, and onboarding customers, digitally in a seamless, easy and secure manner.

They are increasingly being supported by economic policy changes from regulators and national banks to further the national digitisation agendas. The Reserve Bank of Malawi has put in place a range of measures, including zero charges on certain types of transfers and contactless point-of-sale transactions, and a three-fold increase from MWK 750,000 to MWK 1,500,000 in the daily limit for individual transfers using mobile money wallets.

As growing numbers of consumers and businesses transact online, one of the biggest obstacles to the mass uptake of digital solutions will be security, says Lungu. TransUnion’s quarterly analysis of global online fraud trends found that the telecommunications, e-commerce and financial services industries have been increasingly targeted by online fraud, with the number of suspected fraudulent digital transactions increasing by 5% comparing the periods Jan. 1-March 10 and March 11-April 28 (March 11, the mid-date, was the date the World Health Organization (WHO) declared the coronavirus (COVID-19) a global pandemic). TransUnion identified more than 100 million suspected fraudulent transactions globally from March 11-April 28 alone.

This will mean banks and businesses will need to deploy robust identity verification and fraud detection tools to manage their risks and avoid losses at a time when demand for credit is growing. At the same time, they must ensure a smooth customer experience that does not alienate the customer before they have even onboarded.

“Now that even more transactions have shifted online, fraudsters are trying to take advantage and companies must adapt. Lenders and businesses need to know exactly who they are dealing with, and how to protect their genuine customers from fraudulent activities. The businesses that come out on top will be those leveraging fraud prevention tools that provide great detection rates, and providing the ability to open accounts online in an easy, personalised way,” said Lungu.

Rather than asking customers to manually enter their personal information, for example, ID documents can be validated online, and the information used to pre-fill an application. Once ID is established, the next step is effective ID Verification to detect and prevent fraud. Digital transactions carry an increased risk of fraud that businesses need to address through a multi-layered fraud strategy including assessing risk of digital signals like device, email, phone and behaviour.

After ID management and fraud risk and prevention steps are taken, the final steps in a seamless onboarding experience include assessing the consumer’s ability to pay, based on actual or estimated income and credit history.

“COVID-19 has put immense pressure on African financial institutions to transform digitally, and to do this, they will need access to the most comprehensive set of offline and online data assets. Providing a truly seamless onboarding process requires up-to-date data sourced from credible data sources like credit agencies, government agencies, telcos and utility providers. This is where information providers like TransUnion are playing an increasing role in driving digital transformation, access to credit and financial inclusion,” said Lungu.

Continuous sharing of data in the market as a strategy to mitigate against fraud and risk management, will be of great importance too going forward.

According to TransUnion’s data, consumer debt balances have increased sharply, almost doubling since December, as growing numbers of consumers turn to unsecured credit, including personal loans, to cover everyday expenses.

If you’re going to struggle to pay your bills in the coming months, it’s critical to talk to your lenders upfront, says Rodgers Lungu, country manager at TransUnion.

Here are three ways to manage your credit through the COVID-19 pandemic, and beyond.

Protect your credit score

As income streams shrink in the coming months, people may find themselves having to use their home loans. The important thing is to pay all of your bills on time if you can. Paying on time, in addition to other factors used by Financial Institutions, affects your credit score the most.

It’s even more vital than usual to protect your credit score during tough times, because access to credit can often help you get through the rough patches.

Talk to your lenders

If money is tight and you’re worried you’re going to miss a payment or two, it’s best to contact your lender before the payment is due. You can explain your situation and ask whether they can offer any assistance.

Consider contacting your bank or insurance policy issuer if you’re affected by the COVID-19 pandemic. You may qualify for some leeway.

Stay in control of your credit health

It’s important to check your credit report to make sure all your account information is correct. You can get one free credit report each year from any or both of the credit reference bureaus in Malawi such as Transunion. That way, if you contact your lenders to discuss your financial situation, they’ll have correct data about you or your institution to work with.

“We know many people are feeling anxious about their finances during this challenging time. Organising your credit information and maintaining communication with your lenders are two ways you can help stay in control of your credit health during times of uncertainty,” says Lungu.

To contact us for more information click here

Regularly reviewing your credit report should be at the top of the list of your personal financial habits. It can tell you the state of your financial background, your personal payment history, and your creditworthiness. It even flags identity theft and consumer fraud. To benefit from reviewing a credit report, though, you must not only read and understand it but know how to use the information it contains to your advantage.

What is a credit report?

A credit report is a record of your credit history and payment behaviour over the past seven years, that is maintained by credit bureaus, such as TransUnion. It contains both positive and negative information about how you manage your credit. Your report includes:

• Personal information: Your name, ID, address, marital status, employment information and contact details.
• Account information: A list of every bank and business that’s lent you money, your credit limits, loan amounts and how you are managing them.
• Current financial information: Your level of debt, and how many times you’ve applied for credit recently.
• Enquiries: Who has viewed your credit profile and for what purpose.
• Negative information: Accounts where you have made late payment or no payment at all.

How does it get created?

Every month, lenders send information on your credit and loan history, and your payment record, to credit reporting companies like TransUnion. This information is then analysed to create your credit report.

What’s the difference between a credit report and a credit score?

They are not the same thing: your credit score is formulated from the information contained in your credit report.

• A credit report is a document that contains information about your financial history and payment behaviour.
• A credit score is a three-digit number based on the information in your credit report, that helps lenders evaluate how safe or risky you are as a customer. Each lender has their own criteria on how to assess your credit application.

Why is it important to have a good credit score?

Having a high credit score will not only make it easier to get credit products such as a house or vehicle loan, but it may also help you negotiate a lower interest rate. A credit report with negative listings such as defaults, as well as too many enquiries for loans or credit in a short period of time, could result in a low credit score. This means you may pay a higher interest rate, or be denied credit.

What affects my credit score?

The biggest influence on your credit score is your account payment history – that is, how you manage your accounts and whether you pay your accounts on time. Focus on paying the full instalment of every bill on time, so you’re offsetting past negatives with more recent positives. It also helps to maintain a healthy mix of credit - store accounts, credit cards, home loan, and service contracts such as cell phone accounts - to establish a good credit history.

Who views my credit report, and why?

When you apply for credit – like a home loan, a car loan, a new credit card, a clothing store account, a new cell phone contract or an insurance policy – banks and lenders will look at your credit report as part of the process of assessing if you’re suitable for credit. Other companies that may view your profile include insurance companies, landlords and even employers, but they need to get your permission first.

How do I access my credit report?

It’s easy to obtain your free credit report once every 12 months from TransUnion and other credit bureaus. Write to TransUnion at PO Box 2766, Blantyre, or visit us at Kabula House, Ground Floor, Suite 3, Corner Chilembwe & Hannover Avenue, Blantyre.

Who do I speak to if I want to dispute items listed on my credit report?

Often, consumers have errors on their credit reports that affect their credit scores. Check for mistakes, such as payments marked late when you paid on time, or negative information that’s out of date. If you see errors or discrepancies, contact the credit bureau you got your credit report from to lodge a dispute. For TransUnion, these contact details are: 01 832 324, or email tumwsupport@transunion.com. Provide as much supporting documentation as possible, like receipts or evidence of payment. TransUnion will write to the listing institution and respond within the legislated 10 working day period.

What are you waiting for? Check for your free credit report today! Click here for more information