MTN banking on Mokash to tap into potential of unbanked population
Kampala August 08 – Uganda’s largest telecom service provider MTN is banking on the launch today of a mobile money loans and saving product to entrench its market dominance by bringing the unbanked into the financial services loop.
The product that is initially being backed by Commercial Bank of Africa, CBA, will allow MTN Mobile Money customers to save from as little as Ushs50 on their mobile money savings accounts while earning interest of up to 5 percent. Those who need credit can borrow can up to Ushs 1 million at a lending rate of 9 percent.
“This marks a major milestone in the evolution of the mobile services and we are very excited to introduce the product. MTN Mobile Money has continuously pushed the boundaries for a world of endless possibilities through financial inclusion and now MTN mobile money subscribers can save with Mokash,” incoming chief executive Wim Vanhelleputte said.
Samuel Odeke, his counterpart at CBA added: “Mokash is an unprecedented product which seeks to formalise savings and make cash available. It will improve the financial inclusion and boost savings,”
Prof. Augustus Nuwagaba the Chief executive of Reev Consult said the latest development in Uganda’s financial system would besides extending services to the unbanked; create incentives for more savings which would positively impact GDP through increased availability for on lending.
“More savings mean more money is available for investment and investments have a potential of unlocking the economy but we cannot come out of poverty unless you have invested your savings. This product will enable people who lack a savings incentive to come on board,” Nuwagaba said. Only 8.3 percent of Uganda’s population is banked.