Almost every financial adviser will tell you that whenever you earn, you ought to save for the bad days tomorrow or the unforeseeable future.
On the other hand, the hard economic times majority of the population lives in mean that every once in a while, you will need to borrow from friends, loan sharks or credible lenders.
As such, thousands of Ugandans interact with Saving and Lending/Credit products on a daily.
That said, a few years ago, both borrowing and saving were tiresome, time consuming, complicated and somewhat impossible. This is no longer the case following the coming to the market of digital enabled, flexible and easy to use saving and credit products.
In this year’s Digital Impact Awards Africa, 7 products are competing for the #DIAA2019 Best Saving and Lending/Credit honour. The 7 are all transforming the saving and credit finance sub sector mainly for the informal mass and emerging sector. These are, not listed in any particular order Airtel Wewole, CenteMobile Loans, Fenix International – Readypay Solar , Finance Trust – Mobile Loans, Mazima Retirement Plan, M-Kopa For Energy and MTN MoKash
Wewole is a Luganda word that means borrow in english. Implemented in partnership with JUMO, Airtel Wewole allows Airtel customers to borrow between UGX 8,000 and UGX 500,000 and Airtel Money agents between UGX 100,000 and UGX 1,000,000 digitally on their mobile phones. “Unlike other products on the market, Wewole does not require customers and Airtel Money agents to save or provide collateral to be able to borrow and allows movement of money between the Wewole account and Airtel Money account at no extra charge.”
The CenteMobile Loan service is a micro loan service accessible via USSD (*211#) and the CenteMobile Application. It enables Centenary Bank customers to conveniently access small quick loans (Minimum amount of UGX 5,000 and Maximum of UGX 2million payable within 30 days at a 5% interest per month) instantly for purposes of emergencies through their mobile phones.
Implemented in partnership with MTN Uganda, Fenix International’s ReadyPay Power is an “expandable, lease-to-own solar home system providing lighting, phone charging, TV, and radio, financed through affordable instalments over mobile money.” It combines customer payment histories with additional data sources to create a cutting-edge credit score that enables those living off-grid to access both power upgrades and other life-changing loans.
Trust Mobile Loan aka ‘Loan Ku Simu’ enables Finance Trust Bank customers to access emergency micro loans of upto UGX 1,000,000 payable in 3 months. To get started, one simply dials *224# or downloads the Trust Mobile app.
With the slogan Tutereke (Let us Save), Mazima Retirement Plan is a saving scheme targeting voluntary long term savings. Mazima Retirement Plan works in partnership with Housing Finance Bank as the scheme’s custodian and African Alliance Limited as Fund Managers. The Fund is available on Airtel and MTN Mobile Money platforms thus ensuring easy collection of member savings. All savings attract annual interest depending on the prevailing market rates.
Implemented in partnership with CBA Bank, MTN Uganda’s MoKash is a service that provides customers the ability to save and borrow using their phones by dialling *165*5#. A customer can take a loan between UGX 3,000 up to UGX 1,000,000 repayable with a 9% interest in 30 days.
M-KOPA for Energy mainly Solar is a global market leader of ‘pay-as-you-go’ energy for off-grid customers. It enables customers unable to make one off payments for solar connections to have it installed in their homes and pay it in instalments conveniently through either MTN Mobile Money or Airtel Money services.
All these 7 products have one unifying factor. They are all driving digital-financial inclusion through the mobile phone. What differentiates each of the products from the other is the customer experience they offer. Because they are all tech enabled, occasional glitches are expected. That said; repeated and unresolved glitches kill their wooing and game changer element.
The overall winner for Best Lending and Saving/Credit Product will be determined by a Jury/Research Panel assessment and public survey/vote.
Under the theme #IncludeEveryone, Digital Impact Awards Africa is a platform that promotes Digital Inclusion, Financial Inclusion and Cybersecurity. Precisely; the Awards seek to recognize, celebrate and appreciate different individuals and organizations that are spearheading the use of digital mediums to better serve their communities.
HiPipo looks forward to host all the nominees and other players come 20th September 2019 at Kampala Serena Hotel. Contact the #DIAA2019 team to book your attendance package Standard ($1,595) for awards attendance Or Corporate ($3,450), Corporate Branded ($5,200) that will give you access to Include Everyone – Digital and Financial Inclusion Summit and Panel discussions with Digital Leaders.