TransUnion Kenya recently announced the launch of TrendedView Report. This newly enhanced consumer report helps lenders understand a consumer’s credit behaviour and repayment patterns before and after the COVID-19 hit to identify credit risk and lending opportunities.
TransUnion Kenya position on Credit Score
According to Samuel Tayengwa, Director of Product at TransUnion Kenya, Insights on consumers’ credit scores and loan balances before and after the crisis, how their credit scores are trending, what loan products they have and what the credit limits are can lead to better risk management and more informed lending decisions.
During a recent media roundtable hosted by TransUnion Kenya under the theme, ‘Kenya’s Recovery Post the COVID-19 Pandemic, he made these remarks.
Tagengwa said lenders remain under pressure to restructure loans and offer tax holidays to beleaguered consumers, hit by effects of the COVID-19 pandemic.
He said while banks are experiencing a spike in non-performing loans, there is also a rapidly growing consumer appetite for borrowing when income is under pressure.
According to Tayengwa, a credit score alone does not give banks and financial institutions full context of a consumer’s financial position.
He said it is essential to understand the customer journey in the context of economic and business trends.
“Access to credit is fundamental to a strong and growing economy. This capability will help consumers build financial security by getting access to responsible credit, while giving credit providers deeper insights into the risk behaviour of consumers to better serve them and advance them credit that can lead to a higher quality of life,” said Tayengwa.
As lenders respond to and recover from the pandemic’s financial impact, managing the effects of COVID-19 on credit risk is now a top priority.
TransUnion Kenya credit data shows that non-performing loan rates in Kenya have increased to 14.6% in March 2021, from 12.5% in March 2020, as more borrowers default on their repayments.
Fraud remains an ongoing and increasing concern, with TransUnion Kenya data putting annual losses from identity theft and loan stacking in Kenya at approximately KSh 13.3 billion.
TransUnion Africa currently operates in 8 countries in Africa: Botswana, Kenya, Namibia, Rwanda, South Africa, Swaziland, Zambia and Malawi.
It offers Commercial, Consumer, Insurance and Auto risk information solutions across several industries and personal credit management solutions in Africa.