TransUnion Botswana announces the launch of three new intelligence solutions designed to help financial institutions make smarter lending decisions, strengthen risk management and responsibly expand access to credit. Supported by an enhanced dataset that provides a richer view of consumer payment behaviour, the new solutions will help lenders unlock greater economic participation while supporting sustainable growth across Botswana's financial sector.

Following the recent licensing process, TransUnion is continuing to invest in Botswana's financial ecosystem through enhanced data capabilities, advanced analytics and new solutions designed to support lenders and consumers alike.

"The launch of these three new solutions represents an important investment in Botswana's financial future," says Kabelo Ramaselwana, chief executive officer, TransUnion Botswana. "Financial institutions need deeper insights and stronger analytics to support responsible growth. By combining richer data with advanced intelligence solutions, we are helping lenders make better decisions, expand access to credit and support greater economic opportunity."

New Intelligence Solutions for a New Credit Environment

TransUnion is introducing three new capabilities designed to help Botswana's financial institutions grow responsibly, improve decision-making and unlock new opportunities.

• Industry Scores use sector-specific predictive models to help lenders assess thin-file and credit-invisible consumers with greater confidence.
• Collections Solutions enable smarter, data-driven collections strategies that improve recoveries while reducing operational costs.
• Business Intelligence Reports provide market and portfolio benchmarking insights, helping organisations understand performance, identify growth opportunities and make more informed strategic decisions.

Together, these three solutions equip organisations with the intelligence needed to expand access to credit, strengthen risk management and drive sustainable growth.

Enhanced Data for Better Lending Decisions

These solutions are underpinned by an enhanced dataset that brings together broader payment and credit information to provide a more complete view of consumer payment behaviour and credit obligations. By reducing fragmented views of borrowers, financial institutions can make more informed decisions across the credit lifecycle, from origination and portfolio management to collections.

For lenders, access to richer information means decisions can increasingly be based on a broader understanding of borrower behaviour, helping institutions identify opportunities while maintaining sound risk management practices.

Unlocking Access to Credit and Economic Growth

Botswana's financial sector is entering a period of significant transition. While the country remains one of Africa's most financially included markets, lenders face increasing pressure to balance growth, affordability and risk amid changing consumer credit profiles, rising living costs and broader economic pressures.

At the same time, significant opportunities remain to broaden access to credit. Although around 72% of adults have access to a bank account or mobile money service, a large share of the population remains outside the formal credit system. As a result, lenders often struggle to assess creditworthiness using traditional risk models, limiting borrowing opportunities for consumers and small businesses.

TransUnion analysis indicates that richer data and enhanced scoring models could increase loan approvals by 4% to 6% annually while maintaining credit quality, potentially unlocking up to P5 billion in additional lending across the market. Enhanced collection capabilities have also demonstrated a 38% increase in visibility and a 40% improvement in collections yield, helping institutions strengthen portfolio performance and support sustainable economic growth.

Supporting Consumer and Business Growth

The opportunity extends beyond personal credit. Botswana's MSME sector employs approximately 175,000 people and generates an estimated P14 billion in annual turnover, yet many businesses continue to rely on manual record-keeping, making it more difficult to demonstrate creditworthiness and access finance. Enhanced commercial credit information and business analytics can help financial institutions better assess these businesses and support their growth through improved access to funding.

As financial institutions navigate an increasingly complex environment, access to deeper market intelligence is becoming increasingly important. TransUnion's Business Intelligence capabilities are designed to help organisations understand portfolio performance trends, monitor market developments and identify emerging opportunities, enabling more informed strategic decision-making.

Investing in Botswana Financial Future

TransUnion remains committed to supporting Botswana's evolving financial sector through ongoing investment in data, analytics and innovation. By combining global capabilities with local market expertise, the company aims to help lenders serve consumers and businesses more effectively while supporting broader economic growth.

"Growth and risk discipline are no longer opposing objectives," says Ramaselwana. "More complete information allows institutions to identify and serve the right consumers and businesses with greater confidence. That is good for lenders, good for consumers and ultimately good for Botswana's economy."

TransUnion Kenya, a global information and insights company, and global analytics software leader FICO are leading the charge in transforming the country’s financial landscape with new groundbreaking risk solutions that are designed to broaden access to credit and empower financial institutions. By leveraging enriched data and analytics, lenders can now make more informed decisions, which foster greater economic empowerment and build a more resilient financial ecosystem.

The two new solutions at the heart of this transformation are TransUnion’s CreditVision® Variables solution and the FICO^® Score. Together, they address critical challenges in risk assessment and financial inclusion. CreditVision Variables provides an enhanced view of consumer financial behaviour, analysing over 145 data sources and up to 24 months of historical payment data. The new FICO Score is built for the Kenyan market using proprietary predictive analytics technology and over 4 million records from the TransUnion database.

Enhancing traditional credit risk strategies with the FICO Score and comprehensive data analysis can improve risk predictability and enable lenders to extend financial services to more consumers. In other global markets, lenders integrating CreditVision Variables into their credit risk strategies have experienced a significant boost in risk predictability by 20%-30%. This enhancement has led to a notable improvement in approval rates, ranging from 15%-20%.

CreditVision Variables can address essential business needs by:

• Cost-effectively identifying and engaging the right new customers
• Growing and optimising the profitability of existing customers
• Providing insights into customer motivations and behaviours

“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,” said Morris Maina, CEO of TransUnion Kenya.

TransUnion has partnered with global analytics software pioneer FICO across Africa since 1997 and the two firms are now expanding their partnership to Kenya to introduce FICO’s advanced scoring models designed to meet the needs of the local market. This collaboration aims to improve credit-granting processes by equipping lenders with these advanced tools to manage portfolio risk and monitor credit activity.

The FICO Score is the latest evolution of credit scoring for the Kenyan market and has been designed to reflect the rapidly evolving lending ecosystem, where microlending, in particular, is more embedded than before. This single credit risk score provides lenders with a more granular and effective means of credit risk assessment, enabling a more accurate understanding of borrowers, and provides a significant boost in predictive power across all forms of lending. The predictive power of the new Kenya-specific FICO Score is significant across all forms of lending, with specific industries, such as microlending, performing particularly well. This is important in the Kenya context as 95% of scoreable consumers have at least one microlending tradeline.

Benefits of using the FICO Score include:

• A single credit score to help lenders make credit decisions across both traditional credit products and microlending, including mobile loans
• Rapid approval/decline decisions for new applicants, reducing friction at the acquisition stage
• Refined allocation of credit limits and loan amounts
• Consistent risk-based pricing and terms of business
•  Improved risk management, giving lenders the confidence to make more credit available while controlling losses
• Greater efficiency using a single score across both traditional and digital lending channels

The FICO Score is a numerical snapshot of a consumer’s credit risk, providing a measure of their likelihood of fulfilling credit obligations. Using data from TransUnion, the model generates a score ranging from 300 to 850, where the higher scores indicate lower credit risk. Each credit score comes with the top four reasons for its calculation, offering transparency and actionable insights into factors impacting the score. The score is calculated on request by the lender and uses the latest information in the TransUnion file.

“This level of transparency aids both lending officers and consumers,” said Mike Manaton, Vice President of Scores at FICO. “The FICO Score provides clear insights into the factors influencing a consumer’s score. Additionally, it enables lenders to assess applicants more accurately, tailor credit terms accordingly and enable credit access for more consumers.”

An example of the power of the FICO Score is the distribution of accounts across the score range. As shown below, the risk decreases sharply as the score rises, with consumers scoring in the highest-risk decile (300-442) representing about nine times the risk of consumers scoring in the lowest-risk decile (682-850).

According to TransUnion's Q2 2024 Consumer Pulse Study, financial inclusion in Kenya continues to improve. Its insights showed that 36% of consumers felt they had sufficient access to credit compared to 33% who felt the same a year ago. The increase in financial inclusion is noteworthy because well over half (60%) of consumers said they were considering applying for new or refinancing existing credit within the next 12 months.

"We welcome this global innovation in Kenya and are confident that the industry will adopt these solutions to drive the country’s Financial Inclusion agenda. Financial inclusion remains a key focus for the industry, as it is essential for fostering economic growth and empowering communities. By embracing these new technologies, we can ensure broader access to financial services, in turn supporting sustainable development and prosperity for all," said John Gachora, Chairman of the Kenya Bankers Association (KBA).

Discover more about CreditVision Variables here and the FICO Score here.

Supporting industry quotes:

“TransUnion Kenya's and FICO’s new credit risk solutions are a game-changer for the region. At CIS Kenya, we believe these innovative solutions will empower businesses to make more informed decisions and drive economic growth." Jared Getenga, Chief Executive Officer, Credit Information Sharing Association of Kenya - CIS Kenya

ENDS

“If you’re struggling to make ends meet, there are several debt relief options available to you,” says Morris Maina, chief executive officer of TransUnion Kenya. The one thing that you should not do is to resort to so-called ‘credit repair agents’, who claim to be able to remove credit listings and provide clearance certificates for an upfront fee.

“A quick fix to get your credit back on track may seem tempting, but it’s nothing more than a scam. This practice is illegal, and you could end up losing your money. If you’re battling to pay your bills, you should proactively talk to your lenders to make arrangements; use credit responsibly; and know your credit standing,” said Maina.

To avoid late payments and adverse credit listings, here are TransUnion’s top five tips.

Talk to your banks and lenders early and often

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 to make alternative payment arrangements. You can explain your situation and ask whether they can offer any assistance. Don’t just ignore your bills.

Don’t just stop paying your bills

“The worst thing you can do in a financial crisis is to just stop paying your bills,” warns Maina. If you stop paying your bills without talking to your lenders, or making arrangements for a payment holiday, your credit score will be affected negatively.

Consider taking a payment holiday

A payment holiday is an agreement with your credit provider/s to temporarily stop making repayments on your loans for an agreed period. “It is important to remember that you still owe the amounts that you haven’t repaid during your payment holiday. These will have to be repaid. Your credit provider will be able to explain all the details and how this will work,” said Maina.

Keep protecting your credit health

Many Kenyan consumers are facing some tough financial choices right now. "We encourage you to pay what you can to avoid late payments on your credit report. If you can’t make minimum payments, talk with your lenders to find out if they’re offering any assistance. The important thing is to pay all of your bills on time if you can. For most people, paying on time is the biggest factor that affects your credit score,” said Maina.

Check your credit report

Checking your credit report is an important step on the road to financial health. You can download your credit report for free once per year from TransUnion and other credit bureaus. You can also request a credit report or access your Credit Reference Bureau (CRB) clearance certificate through TransUnion’s Nipashe, which allows consumers to easily access their credit information through SMS. Your first clearance certificate is free.

To get a free copy of your credit report from TransUnion, simply SMS your name to 21272 and register for Nipashe. You can then download your free credit report or request your credit status. You can also send an email to info@transunion.com or download TransUnion’s Nipashe app to your Android smartphone via the Google Play Store.

Disclaimer: SMS and Registration charges apply at Kes.19 and Kes.50 respectively.

[1] https://www.worldbank.org/en/country/kenya/brief/monitoring-covid-19-impact-on-households-and-firms-in-kenya

As a result, a growing number of consumers are at risk of missing payments or even defaulting on loans and financial obligations, which affects their credit scores negatively, said Lara Burger, the country manager of TransUnion Namibia.

“The problem is that having credit is practically essential to navigating a modern lifestyle. Few people can pay cash for a home, a car, education or big-ticket items. But when people battle to make their payments, it affects their credit scores, which will make it more difficult to get a loan or credit card in future. Thankfully, a credit history can be rectified over time by establishing better financial habits,” said Burger.

So, what do you do when your debt gets out of control, and you’re faced with adverse listings on your credit report? While a low credit score may affect your ability to get credit in the short term, it’s never too late to start remedying the situation.

Here are some steps you can take in 2022 to improve your credit profile.

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 score, and ease the pressure on your finances.

Pay your bills on time

The best 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, dedicate the next year to making every payment on time. If you can pay more than the minimum payment in the process, that’s even better.

Stick to a budget

Now is a good time to work on your budget. By budgeting and paying your bills on time, you’ll be on your way to getting into great financial shape for next year.

Limit your amount of debt

Try to keep your utilisation of your current credit facilities to less than 35 percent of your limit. For example, if you have a credit card or a store account with a limit of N$ 995.26, try to maintain the amount owing balance at under N$ 348.34.

Check your credit report

You’re entitled to one free credit report every 12 months. Use it. Get a copy of your credit report from TransUnion and check it carefully 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, can improve your credit health.

You can get your free credit report by calling +264 81 341 8727, or mailing SA_Namibia-FreeReport@transunion.com or Namibia-freereport@transunion.co.za. You can also visit TransUnion’s offices in Windhoek at 269 Independence Avenue, BPI House, 1st Floor, Room 114. 

Problem is, while most Kenyan consumers know what a credit report is, far fewer understand how it influences their credit score and can help them access credit and achieve their financial goals, says Joseph Nyaga, acting chief executive at TransUnion Kenya. That’s why a vital part of the journey to financial health is maintaining and improving your financial health to get a good credit score.

“One of the best ways to improve your credit score is to avoid over indebtedness and maxing out your credit facilities. Check the credit limits on your loans, accounts, credit cards and overdrafts, and then see how much you owe on each of them. Make a plan to maintain a healthy amount of headroom in your lending facility and pay off as much of your outstanding balances as possible if you have the means: it will reflect on your score and ease the pressure on your finances,” said Nyaga.

Improving your credit score starts with checking your credit report. You can download your credit report for free once every 12 months from TransUnion and other credit bureaus in the country. You can also request a credit report or access your Credit Reference Bureau (CRB) clearance certificate through TransUnion’s Nipashe, which allows consumers to easily access their credit information through SMS. Your first clearance certificate is free.

Beware of scams, keep your finances secure

Importantly, you cannot improve your credit score and ‘clean-up’ your credit file by using so-called ‘credit repair’ services that promise you a fresh start for your credit history, warns Nyaga.

“Getting your credit back on track may seem tempting, but it’s actually a scam. Be very careful of so-called 'credit repair agents' who claim to be able to remove valid listings for an upfront fee. This practice is illegal, and you could end up losing your money,” said Nyaga. “One way to dispute inaccurate information on your TransUnion credit report is by emailing info@transunion.com.”

These scams often take the form of fake ads on a range of digital and social media channels. The ads may appear to come from TransUnion, saying that they will manage credit disputes on consumers’ behalf, or even clear their disputes and credit history. The ads use TransUnion’s web address, but the contact number is fictitious.

There are certain things TransUnion will never do when you’re accessing your credit report, says Nyaga.

• It will never ask you to share OTP numbers over the phone when accessing your Clearance Certificates.
• It will never handle disputes via social platforms or online classifieds. TransUnion’s official social media handles are https://www.facebook.com/TransUnionKenya/ and https://twitter.com/TU_Africa. It does not share information on any other social media platforms.
• TransUnion will never use phone numbers that are not listed on the www.transunionafrica.com website. Make sure you click through to the website to see the phone numbers that are listed on the ‘contact us’ page. If you’re unsure about the authenticity of a message from TransUnion, contact the company’s Kenya office on one of the following numbers: +254 742258478, +254 768617074, +254 768253748, +254 768262495, +254 706565285.
• TransUnion will never communicate via email on any domain name other than @transunion.com. Any webmail account, like Gmail, Hotmail, Yahoo or other web-based email, that claims to be from TransUnion, or acting on its behalf, should be ignored.

“We’ve seen a growing trend in recent years of consumers wanting to transact and take care of their finances online – and this has only accelerated through the pandemic. That’s why it’s more important than ever that we take basic precautions to stay safe, and get into good habits that help us take control of our financial futures,” said Nyaga.

To get a free copy of your credit report from TransUnion, simply SMS your name to 21272 and register at a cost of KES.50. You can then request your credit status at a charge of KES.19 per SMS. You can also mail info@transunion.com.

According to the Bank of Botswana’s latest statistics as of January 2020, Botswana households’ indebtedness levels rose from BWP35.2bn in January 2019 to BWP40.3bn in January 2020, a 9% YoY growth¹. Consumer debt balances have increased sharply in the past 12 months, as growing numbers of consumers turn to unsecured credit, including credit cards and personal loans and overdraft, to cover everyday expenses. With the report showing delinquencies on the rise, many people are struggling to make repayments on their debts.

If you’re going to struggle to pay your bills in the coming months, it’s critical to talk to your lenders upfront, says Kabelo Ramaselwana, chief executive officer at TransUnion.

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

Protect your credit profile

As income streams shrink in the coming months, people may find themselves having to use their credit cards more, or even dip into their home loans for refinancing. The important thing is to pay all of your bills on time if you can. Paying on time is one of the biggest factors that affect your credit profile.

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

¹_{Source: Bank of Botswana, (data as at January 2020)}

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 credit issuer if you’re affected by the COVID-19 pandemic. You may qualify for some leeway. Several Botswana banks have already announced payment holidays to help consumers and small businesses get through this time.

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 your credit report from several information providers like TransUnion. That way, if you contact your lenders to discuss your financial situation, they’ll have correct data 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 Ramaselwana.