Unlocking Africa’s Fintech Future Beyond Credit Scores

By: Mladen Čolić, Sales Vice President: Fintech Africa at TransUnion

The FinTech industry has come a long way in Africa. Once a fringe disruptor, it is now a powerful force shaping how people borrow, pay, and manage their financial lives. Yet, behind every digital wallet, instant loan, or cross-border transaction lies an ecosystem built on trust, data, and scalability.

Historically, credit scores and formal financial histories determined access to financial services. Yet, in Africa’s dynamic markets, these conventional indicators do not serve the vast majority who operate outside the formal economy. The conversation has moved far beyond credit scores. Today, the innovative use of alternative data and technology is transforming how risk is assessed, identities are verified, and financial inclusion is achieved.

From Bureau to Growth Partner

TransUnion is often perceived as “just” being a credit bureau. We are a data and insights company with a clear mission: “Information for Good” which includes fuelling FinTech innovation by building trust where it matters most, between individuals, businesses, platforms, and financial ecosystems.

We provide data, insights and relevant solutions and capabilities that help FinTechs streamline customer onboarding and assist digital banks in strengthening identity verification and risk assessments. Our role is critical in making onboarding and credit decisioning more efficient, secure, and scalable.

Our presence across the African continent gives us a unique perspective. Each market has distinct regulatory frameworks, consumer behaviours, and infrastructure challenges. We work closely with FinTech partners to develop locally relevant strategies that are both impactful and compliant.

The most successful FinTechs in Africa are reimagining their relationship with data. Rather than viewing it solely through a compliance lens, they use it to unlock customer insights, reduce onboarding friction, detect fraud, and build scalable platforms.

Inclusion Through Innovation

Africa is mobile-first and increasingly digital-native. Yet millions remain underbanked or entirely outside the formal economy. By looking at consistent patterns like regular money transfers sent or received through digital wallets, credit bureaus and financial service providers can better understand an individual’s financial habits and stability. These behaviours are strong indicators of responsibility and financial engagement, opening doors to financial services products for those who would otherwise be invisible to the formal financial system.

For example, take a mother in rural Kenya who regularly receives funds from her daughter working in South Africa. While she may not have payslips or a traditional credit record, her steady receipt of remittances demonstrates financial consistency. With the right data infrastructure in place, she could be seen as a responsible borrower and gain access to loans or insurance products that would otherwise be out of reach.

This approach not only allows lenders to redefine how they assess risk but also encourages regulators to broaden their outlook on consumer protection and transparency in the digital economy.

Smart Scaling in a Tight Funding Climate

Across the continent, funding for early-stage FinTechs has become more selective. The era of growth-at-all-costs has given way to a sharper focus on unit economics, compliance, and profitability. To succeed in this environment, FinTechs must:

• Reduce onboarding costs while maintaining compliance
• Navigate increasing regulatory demands and
• Expand across markets without overextending operations

To address these challenges, data-driven decisioning, identity verification, credit and risk modelling are crucial. Strategic partnerships are equally important, providing not only tools, but also advisory support and local insights.

Smart scaling is not just about building technology stacks; it is about building with trust and resilience at the core.

Collaboration: The Currency of Progress

Real change requires collaboration. From regulatory sandboxes to FinTech associations and policy think tanks, a multi-stakeholder approach is shaping the future of Africa’s financial ecosystem.

Policymakers are taking a more active role in enabling safe innovation. Associations are helping FinTechs navigate complexity and avoid missteps. Infrastructure providers are reducing the cost and complexity of secure identity verification, fraud prevention, and customer acquisition.

As the financial lives of African consumers become increasingly digital, there is an urgent need for cross-industry partnerships to improve consumer education, build trust, and drive adoption of new tools.

A Continent of Opportunity

Africa’s FinTech story is just beginning. With the world’s youngest and fastest-growing population, the potential to leapfrog legacy systems and build a more inclusive financial future is immense.

Emerging trends such as digital wallets, real-time payments, stablecoins, and decentralised finance are already disrupting traditional models. The impact of these innovations will depend on how effectively data is used to bridge trust gaps, protect consumers, and enable responsible risk-taking.

If we achieve this, we can build a future where credit access, identity, and financial opportunity are not privileges, but fundamental rights. This requires not only technology, but also vision, collaboration, and an unwavering focus on inclusion.

FinTechs alone cannot achieve this. Governments alone cannot achieve this. Infrastructure partners alone cannot achieve this. But together, the ecosystem can turn Africa’s FinTech promise into a global example of inclusive innovation.

This is the frontier we are building for, and the time to build is now.