Connect with us

Hi, what are you looking for?


TransUnion to use telco data in assessing new clients

TRANSUNION Philippines will use telco data to help financial institutions to assess customers that have no credit history.

“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,” TransUnion Philippines Solutions Group Head Pamela Reyes said at an online briefing on Friday.

This data that will be analyzed to include consumers’ mobile behavior such as usage location and device data, she said.

“For postpaid consumers, typically these are also their balances, their payment pattern, their call data records, internet usage patterns,” Ms. Reyes said.

Looking at these data has also become relevant given the rise of the digital economy where Filipinos mostly use their mobile phones to purchase, she added.

Ms. Reyes said telco data are good indicators of creditworthiness among the unbanked and those that have not yet borrowed from formal institutions, allowing for better financial inclusion.

“When [formal] lenders are able to offer consumers with a limited or no formal credit history or a line of credit, it creates an opportunity to build lifetime loyalty. To do so, access to the best information and insights is critical,” Ms. Reyes said.

Pia L. Arellano, president and chief executive officer of TransUnion Philippines, said their previous scoring products have allowed a monthly average of 60,000 new-to-credit consumers to have access to loans from financial institutions.

“We are focused on providing financial institutions with solutions that will enable them to support even more Filipino consumers. Through access to rich insights, lenders can increase acquisition volumes and better protect against fraud, all within their own defined risk appetites,” Ms. Arellano said.

A study by the Bangko Sentral ng Pilipinas (BSP) in the fourth quarter of 2020 showed that five in 10 Filipinos obtain loans from informal lenders. BSP Governor Benjamin E. Diokno said this makes Filipinos more prone to falling for risky schemes.

Meanwhile, only 29% of Filipino adults had accounts with financial institutions in 2019, based on BSP data. This means about 51.2 million Filipinos remained unbanked.

The central bank hopes to bring 70% of Filipino adults into the banked population by 2023. — L.W.T. Noble

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



THE PESO strengthened against the dollar on Tuesday amid easing global oil prices and ahead of an expected increase in remittances due to the...


PHILIPPINE STOCKS extended their climb on Tuesday on last-minute bargain-hunting and ahead of the rebalancing of the MSCI. The bellwether Philippine Stock Exchange index...


The Government Service Insurance System headquarters in Pasay, Philippines. May 28, 2012. — BW FILE PHOTO THE government financial institutions (GFIs) that will be...


REUTERS THE European Chamber of Commerce of the Philippines (ECCP) urged the Philippines to eliminate tariffs on imports of all electric vehicles (EVs) regardless...


President Ferdinand Marcos Jr. answers questions from the media after his first Cabinet meeting in Malacañan Palace, July 5. — PHILIPPINE STAR/ KRIZ JOHN...


FREEPIK AN Israeli tech investor said a country’s legal system is a major consideration in attracting foreign investment, and urged legislators to reform the...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.