Moses Ogwapus, the Commissioner of Financial Services, Ministry Of Finance, Planning And Economic Development has hailed gnuGrid and Airtel Mobile Commerce Uganda Limited’s Mobile Credit Score as an “innovative mobile credit scoring system” and a “paradigm shift” that would revolutionise financial services to the underserved segments of the population, especially the women and youth.
Mr. Ogwapus whose department oversees policy and regulation of the entire financial services sector in Uganda⏤ banking, microfinance, digital financial services, capital markets, insurance and retirement benefits, was speaking at the launch of the service on January 24th, 2024, at the Kampala Serena Hotel.
“The focus on financial inclusion especially reaching the last mile customers, the youth and women is a key pillar of the national economic development strategy. Microfinance institutions, particularly Tier IV are very critical in delivering financial services to these underserved populations. The mobile credit scoring system, unveiled today has the potential to revolutionise the way these institutions operate, making them more effective in reaching the grassroots and contributing to poverty alleviation,” said Mr. Ogwapus.
Unlike the traditional and more conservative credit scoring services on the market that use data from formal financial institutions to assess character and the capacity to pay back, the gnuGrid CRB’s Mobile Credit Score uses over 400 alternative data points supplied by mobile phone companies such as client mobile financial behaviour as well as transaction volumes and frequency to create a more comprehensive and inclusive credit score.
The first of its kind in Uganda, gnuGrid’s Mobile Credit Score generates equally reliable credit scoring that can be relied on for efficient loan origination, risk assessment, disbursements, repayments as well as performance tracking. The innovative Mobile Credit Score presents a new ray of hope for lenders and borrowers as well as governments and development partners that have for long sought for a solution that de-risks lending to millions of Ugandans whose only access to formal and regulated saving and borrowing services is the mobile phone.
A paradigm shift in credit scoring
Since its launch, the Mobile Credit Score has now reached an average of 9,730 credit inquiries daily. Cumulatively, there have been 548,200 customer sessions and 213,000 credit score requests.
“This ground-breaking development aligns seamlessly with the broader national agenda set by the Ministry of Finance Planning and Economic Development; the core principles of financial inclusion, responsible lending, and the use of technology for economic empowerment are at the forefront of our policy initiatives,” Mr. Ogwapus told stakeholders at the launch.
“The focus on financial inclusion, especially reaching the last mile customers, youth, and women, is a key pillar of our national economic development strategy. Microfinance institutions, particularly Tier IV, are crucial in delivering financial services to these underserved populations. The mobile credit scoring system unveiled today has the potential to revolutionise the way these institutions operate, making them more effective in reaching the grassroots and contributing to poverty alleviation,” further said Ogwapus.
He commended the Mobile Credit Score’s emphasis on reputational collateral in credit scoring as opposed to the traditional physical collateral and said that this aligns with the government’s vision of a “financial sector that not only provides access but also ensures that individuals are equipped with the tools and knowledge to manage their financial responsibilities effectively”.
“The use of alternative data as demonstrated by this innovative credit scoring system is a paradigm shift that we fully support. The collaboration between gnuGrid CRB and Airtel Mobile Commerce Uganda Limited, with the endorsement and oversight of regulatory bodies, exemplifies the kind of partnerships needed to drive our nation towards a more inclusive and technologically advanced financial future,” Ogwapus reiterated, adding: “As we embark on this journey towards a more inclusive and responsible financial ecosystem, let us remember that the impact goes beyond numbers—it transforms lives, empowers communities, and contributes to the economic growth of our beloved nation”.
Ogwapus also hailed the “vital role played by the Central Bank of Uganda and the Uganda Microfinance Regulatory Authority (UMRA) in ensuring the stability, and inclusivity and ethical conduct within the financial sector.
“The collaboration between regulatory bodies and industry players is imperative for creating an environment that fosters innovation, and yet upholding the necessary checks and balances to protect consumers and maintain financial stability,” he said, adding: “The collaboration between gnuGrid CRB and Airtel Mobile Commerce Uganda Limited, with the endorsement of the oversight regulatory bodies, exemplifies the kind of partnership needed to drive our nation towards a more inclusive and technologically advanced financial future.”
“May these innovative endeavours pave the way for even greater collaborative efforts in shaping the future of finance in Uganda,” Mr. Ogwapus concluded.
To know your Mobile Credit Score today, (Airtel customers only for now), please dial: *185*8*8*1# and follow the prompts.
To know more about how your lending organisation can get plugged into the gnuGrid CRB Mobile Credit Score, call them on this toll-free number: +256 (0) 800 330003.
They can also be reached on their WhatsApp Smart AI Chat: +256 (0) 785 210522