MTN Uganda has joined forces with Commercial Bank of Africa (CBA) to see customers access micro-loans through a mobile banking system
The new virtual banking platform, Mokash, has been rolled out to be used as a credit facility for the unbanked population. Those in Uganda who arelacking collateral and credit history and thereby locked out of the loans market are also set to benefit.
Wim Vanhelleputte, MTN Uganda chief executive officer, said the service aims to improve access of financial services by enabling customers to save and borrow money using their phones.
To use the service MTN mobile money users need to open a mobile bank account in which they can deposit as low as less than one dollar in savings and borrow up to US$300 (Ush1,000,000) payable with a flat rate of nine per cent.
“Enough research was put into this innovation to enable it reach even the last person in the rural area, therefore, we expect it to have the ability to drive Uganda into a cashless economy gradually as it also improves the livelihoods of the people,” Eric Muriuku, CBA’s general manager of new business ventures said.
Uganda is now the third country in which CBA has operations, to launch the virtual banking platform.
