Airtel Uganda in partnership with KCB Bank Uganda, today announced a partnership to roll out savings and loan products that will enable their customers to earn interest on savings of 5% per annum on regular savings to 9% per annum on fixed deposits. Airtel Money Agents on the other hand will be able to borrow loans for as low as UGX300.
Offering a 5% Interest, the product is set to revolutionize savings in Uganda by providing the best interest rate in the market.
“Most of our customers are unbanked with limited or no access to financial products especially saving deposits. By offering competitive interest rates in an extremely simple product, we are attempting to democratize savings and contribute to building a savings culture in Uganda,” Airtel Uganda Managing Director, Mr. Manoj Murali told journalists at a press briefing held at Serena Hotel in Kampala. Adding that as a telco, they strongly believe the products are the ideal approach to reach the unbanked population in Uganda and the rest of Africa.
The loan product will provide quick access to Airtel Money float financing for the agents, therefore, ensuring seamless service provision.
“Digital financial services through mobile commerce rely on a network of agents who need to have sufficient balances of e-money or physical cash on hand, known as ‘float’ to meet the needs of their customers to cash in or cash out e-money. The loan product will deliver an affordable loan product guaranteeing the agents a better livelihood,” said Manoj.
The savings and loan products are not only in line with the government agenda to deepen financial and digital inclusion in Uganda by the year 2040, they will allow Ugandans access to customizable and convenient banking services.
“Digital banking has and still is playing a pivotal role in the industry’s financial inclusion efforts as demonstrated by the rise in mobile money transactions and increase in the usage of digital solutions over the years. Synergies like this create real-time and competitive solutions for Ugandans. We envision the growth of businesses and individuals and the ease of access to financial solutions in this partnership,” Mr. Edgar Byamah, KCB Bank Managing Director said.
The Directs National Payments and Settlements at the Central Bank of Uganda, Mr. Mackay Aomu hailed KCB Bank Uganda and Airtel Uganda for the innovations and continued to support the government agenda to drive financial inclusion in Uganda.
While addressing the media, Mackay said, “This is a big win for financial inclusion in Uganda. These products are a crucial answer to our country’s effort to empower millions of Ugandans through affordable credit and convenient savings
The products launched include; Airtel Money Supersaver and KCB Airtel Agent Float Financing. Next month (July 2021), Airtel and KCB will launch the third product, a Fixed Savings Account to its portfolio which will enable Airtel Money customers to conveniently make deposits from UGX250,000 upwards. The customer can commit to 3, 6, and 12 months investment period and earn 8%, 8.5%, and 9% respectively, No deposit and withdrawal fees will be charged on this product making it very competitive in the market.
As for Airtel Money Supersaver, Airtel customers will be able to save using Airtel Money. There are no setup fees, minimum balance, and no charges on deposits and withdrawals will be incurred. Customers can save from as low as UGX500 at an interest rate of 5% per annum.
With the KCB Airtel Agent Float Financing product, KCB and Airtel will give short-term unsecured float loans to Airtel Agents by customers initiating the loan requests through the Airtel Agent, and the loan is instantly credited to the customer’s Airtel Wallet.
Instant unsecured mobile loans which are revolving credit for Airtel Money agents. Agents will be able to borrow up to UGX250,000 for a period of 48 hours, at a one-time fee of UGX300 only.