MICROCAPITAL BRIEF: First Access Purchases Data for Risk-Scoring Service from Cellular Network Provider Vodacom Tanzania

US-based data analytics company First Access reportedly has signed a deal to purchase user data from cellular network provider Vodacom Tanzania, a subsidiary of UK-based telecommunications company Vodafone Group, for their risk-scoring service for financial institutions serving poor individuals. First Access calculates credit scores by examining Vodacom subscribers’ mobile phone usage to extract demographic, geographic, financial and social network data. In addition to instant credit scores, First Access will offer financial institutions recommended loan sizes via text message. The fee that First Access will pay Vodacom for the data access has not been disclosed.

Vodacom Tanzania was founded in December 1999 and has approximately 10 million subscribers as of 2014. As of 2013, Vodafone reported revenue of GBP 44.4 billion (USD 69 billion), operating profit of GBP 12 billion (USD 18.7 billion) and a customer base of 403 million people in approximately 80 countries. Financial information for First Access is unavailable.

By Meraj Husain, Research Associate

About Vodafone Group

Vodafone Group, headquartered in London, is a British multinational telecommunications company. It operates in about 30 countries and has partner networks in approximately 50 additional countries. Vodafone Americas Foundation, a US-based subsidiary of Vodafone Group, funds projects that are deemed to be sustainable and that utilize the power of wireless technology to address social issues. As of 2013, Vodafone reported revenue of GBP 44.4 billion (USD 69 billion), operating profit of GBP 12 billion (USD 18.7 billion) and a customer base of 403 million people in approximately 80 countries.

About M-Pesa

M-Pesa is a mobile money service that was launched in Kenya in 2007 and has since been replicated in five countries in Africa and Asia. The “M” stands for “mobile,” and “pesa” means “cash” in Swahili. Launched in Kenya by Safaricom Limited, a Kenya-based cellphone service provider, M-Pesa was developed by Vodafone Group Private Limited Corporation, a British multinational mobile network operator. As of 2013, M-Pesa serves approximately 16 million clients through 79,000 agent outlets in Kenya, 5 million clients in Tanzania and a total of 5.6 million in South Africa, India and Mozambique. South Africa-based Vodacom, a subsidiary of Vodafone, operates the M-Pesa service in India, Mozambique and Tanzania. M-Pesa service is also available in Afghanistan. The number of M-Pesa users in Afghanistan is not available.

About First Access

First Access is a technology start-up company that is headquartered in the US city of New York. The company offers a mobile software-as-a-service business model that analyzes demographic, geographic, financial and social aspects of clients’ mobile phone usage to predict credit risk for borrowers in informal markets. First Access’ customer base includes retail commercial banks, microfinance institutions, insurance companies, agricultural input suppliers and business payment platforms operating in emerging economies. Financial information for First Access is unavailable.

Sources and Additional Resources

[1] The Corporate Social Responsibility Newswire: “First Access and Vodacom Tanzania Ink Financial Inclusion Deal,” http://www.csrwire.com/press_releases/36806-First-Access-and-Vodacom-Tanzania-Ink-Financial-Inclusion-Deal

MicroCapital, March 20, 2014, “MoneyGram, Vodafone Partner to Enable Global Mobile Money Transfers Via M-Pesa,” https://www.microcapital.org/microcapital-brief-moneygram-vodafone-partner-to-enable-global-mobile-money-transfers-via-m-pesa/

MicroCapital, March 19, 2014, “US-based Startups First Access, Cignifi Analyze Mobile Phone Usage to Measure Creditworthiness of Unbanked,” https://www.microcapital.org/microcapital-brief-us-based-startups-first-access-cignifi-analyze-mobile-phone-usage-to-measure-creditworthiness-of/

MicroCapital, December 10, 2010, “Bill and Melinda Gates Foundation Pledges $500m to Expand Microsaving Over the Next 5 Years Including Grants to World Savings Bank Institute (WSBI), Vodacom Tanzania, Shorebank International, CGAP (Consultative Group to Assist the Poor), World Bank and Yale University/Innovations for Poverty Action,” https://www.microcapital.org/microcapital-brief-bill-melinda-gates-foundation-pledges-500m-to-expand-microsavings-over-the-next-5-years-including-grants-to-world-savings-bank-institute-wsbi-vodacom-tanzania-shorebank/

MicroCapital Universe Profile: Vodafone Group
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Vodafone+Group

MicroCapital Universe Profile: M-Pesa
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=M-Pesa

MicroCapital Universe Profile: First Access
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=First+Access

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

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