Rwanda local telecom operator, Tigo has launched a pilot phase of their mobile financial services, TigoNshoboza Loan Service’, a platform that allows Tigo Cash users to access loans via their mobile wallets.
In the pilot drive, the service will be released to a limited number of Tigo Cash customers aged 18-65 years to allow the telecom study the feasibility of the loan scheme on the Rwandan financial market.
The development comes months after Uganda’s biggest telecom company, MTN unveiled an almost similar service, Mokash, a mobile financial system although it has extra features including savings and loans.
Introduction of Mobile financial services will go a long way in furthering financial inclusion on the African continent, and helping local people who don’t have bank accounts to access soft loans to aid development.
MoKash had registered more than 1.3m users by end of 2016, according to MTN sources.
MoKash enables registered MTN Mobile Money users to conveniently borrow as much as sh1 million using their phones. It was launched by MTN Uganda in partnership with CBA Uganda in August.
Customers can also save money with MoKash by simply moving it from the MTN Mobile Money wallet to the Savings Account, available on the same menu.
As of November 2016, the average MoKash loan stood at UGX. 18,000/= with more than 3,000 MoKash loans a processed every day.
MoKash is doing a lot to transform lives of the local folk in Uganda. Hasifa Nakyanzi, a MoKash user testifies that, “It (MoKash) has helped me a lot, I use the money for business. I started with a limit of 20,000/- which was later increased.”
The introduction of mobile financial services in Rwanda will help extend banking services to local people who cannot afford to open up a bank account but have a Tigo line and are registered on Tigo Cash.
“We are excited to launch TigoNshoboza, a product that we feel will be exciting for Tigo Cash users. I am confident that as people use this service, it will encourage them to use mobile financial services more. We believe that this is a solution for people at a critical time when Rwanda is moving towards greater financial inclusion,” Deputy CEO of Tigo Rwanda, Chantal UmutoniKagame, said during the launch.