MICROCAPITAL BRIEF: Cignifi, Equifax to Generate Credit Scores Based on Mobile Phone Usage in Latin America

Cignifi, a US-based provider of information technology, and Equifax, a US-based consumer credit reporting agency, recently announced a “multi-year partnership” to offer credit scores in Latin America. Cignifi will assess creditworthiness based on mobile phone usage data with the goal of enabling borrowing by those with limited or no formal credit history. Cignifi will source data from local telecommunications companies. Scores will only be available for consumers who opt into the service.

Chris Jones, President of Latin America Equifax. “We are optimistic that the Predictor Inclusion Score will have a significant impact on financial inclusion in the region – helping to expand access to credit for those consumers who previously had limited interaction with banks or financial institutions. This is a score that will help our clients say ‘yes’ more often to applications for credit, and we’re proud to deliver it in a way that respects consumers and allows us to continue to serve as a trusted steward of their data.”

As of April 2016, Equifax analyzes data of approximately 800 million consumers and 88 million business. As of the same date, Cignifi is backed by Omidyar and American Express Ventures.

By Kevin van den Brink, Research Associate

Sources and Additional Resources

[1] Business Wire, News, “Cignifi Equifax Partner Bring Next Generation Credit Scores”

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/