Uganda: Shs1 Billion Loaned Through Mobile Phones
In just two months, the mobile micro-lending and saving platform, MoKash, has been adding an average of 15,000 customers per day, reaching 920,000 over the period. Launched in August and operated by MTN Uganda and the Commercial Bank of Africa (CBA), MoKash allows mobile phone owners to save and apply for micro-loans. This is the first platform operated by both a telecom company and bank that could carry out the function of a commercial bank.
“The biggest contributor is that the service is affordable, extremely simple and convenient to use with all transactions being completed in a matter of seconds.
To access the service, a customer does not go through a protracted registration and verification process or need to visit a banking hall to sign various documents,” Mr Phrase Lubega, the general manager, Mobile Financial Services, told Daily Monitor in an interview recently.
The service allows people to save money and earn annualised interest and also borrow money based on a credit rating developed by CBA and MTN Uganda.