After the launch of the much anticipated Mobile Money savings and loans product, dubbed MoKash on Tuesday by MTN Uganda and CBA, the service has already registered a stunning 83,000 customers in less than 48 hours.
Addressing the media in Kampala, CBA’s General Manager for New Business Ventures, Eric Murioki, revealed that as by close of business on Wednesday the MoKash platform had registered 83,000 new customers and counting.
He went ahead to disclose CBA’s projection in the MoKash venture; “We expect that MoKash will reach 40% of the current 7 million mobile money users within one year, 60% of users within 2 years and 70 – 75% of users within 3 years.”
CBA’s Chief Executive Officer, Samuel Odeke said the projection is to have a loan book of 21 billion UGX and a savings book of 16 billion UGX within a year.
In neighboring Kenya and Tanzania, telecom operators who have partnered with CBA (bank) have reported overwhelming success, with Safaricom CEO saying just last week that the operator processes a loan every second of the day, while speaking at an event in Kampala.
“We have registered over 14 million customers in a period of 40 months in Kenya with M-Shwari and over 4 million customers in a period of 23 months in Tanzania with M-Pawa”, he continued.
MoKash is a mobile money loans and saving product to bring the unbanked members of the public into the financial services loop. MTN Mobile Money customers can save from as little as UGX 50 on their mobile money savings accounts while earning interest of 2% to 5%. Users can borrow from UGX 3,000 to UGX 1,000,000 at a rate of 9% facility fee with a validity period of 30 days.