Following the merger of NC Bank and CBA Uganda — now called NCBA Bank, Mr. Anthony Ndegwa, the bank’s chief executive officer has revealed that the bank is looking at putting more focus on developing its digital presence driven by micro lending under MTN’s micro lending and savings platform; MoKash which has grown to have seven million users.
Other focus areas, he said, will include assisting small and medium enterprises (SMEs) to develop capacity as well as developing the bank’s asset financing, advisory financial services and use of technology for the provision of financial services, reports The Daily Monitor.
MoKash was launched in August 2016 as a result of a strategic partnership between MTN Uganda and CBA Uganda (now NCBA Bank). Less than three months after launch, the product signed up more than one million customers, marking a remarkable milestone in the growth projections of the product. Now at seven million, the speed demonstrates the gap and indeed opportunities that lie in pursuing a true financial inclusion strategy.
With MoKash, MTN Mobile Money customers securely save their money in an interest bearing savings account and in addition access micro loans for personal or business utilization. They can save from as little as UGX50 on their mobile money savings accounts while earning interest of 2% to 5%.
On the other hand, they can borrow from UGX3,000 to UGX1,000,000 at a rate of 9% facility fee with a validity period of 30 days. In short terms, the money borrowed should be paid in a period of 30-days with a 9% interest.