Mobile money loans exceed Shs30b mark

KAMPALA. Commercial Bank of Africa (CBA) has released Shs30 billion in form of loans to subscribers on its mobile banking platform dubbed Mokash.
In August Last year, CBA and MTN Uganda commissioned a platform allowing mobile money subscribers to apply for loans and save money using their phones. Borrowing is currently capped at Shs1m a month with interest of 9 per cent for a month.

“Since the launch of MoKash a year ago, 2.5 million customers have enrolled onto the service. Over 1.2 million of these are actively saving on MoKash,” a statement from MTN reads in part.
Mokash, a micro savings, and loans platform accessible by all MTN customers via phone enables MTN Mobile Money customers to save regularly, and provides customers with a platform to borrow unsecured loans from as low as Shs3,000 to a maximum of Shs1 million using their phones.

“With the introduction of additional services on the MTN Mobile Money platform, it has transcended the basic sending and receiving functionality to more advanced services like payments, international remittances, saving and borrowing via the phone. We anticipate that the increased penetration will enable us achieve our bigger financial inclusion vision,” Ms Elsa Muzzolini, the general manager of mobile financial services at MTN Uganda said.
According to the Finscope III, MTN Mobile Money was the largest contributor to the nonbank financial services in Uganda.

The additional feature of being able to borrow and save (Mokash), means The unbanked can be served with financial services that have previously been a privilege of traditional bank account holders.
With more than 9 million registered subscribers on MTN Mobile Money, which represents 80 per cent of MTN Uganda’s total subscriber base, MoKash has an immediate potential reach that extends to all MTN Mobile Money customers wherever they might be.
Mobile money services were introduced in Uganda in March 2009.
Currently, there are six mobile money schemes: MTN mobile money, Airtel money, M-Sente, Ezee money, M-cash, and Africell money.

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