Browsing: Mobile Money Loans

Airtel Uganda and KCB Bank Uganda announced a partnership to introduce a variety of mobile loans and savings solutions in Uganda.

From the partnership, its customers will earn interest on savings of five percent per annum on regular savings and 9 percent per annum on fixed deposits.

The automated digital products include Regular Savings, Instant Unsecured Mobile Loans and Fixed Deposit Savings Accounts that will allow its customers to borrow mobile loans from as low as UGX300 (KSH 9.15). Airtel Money Agents will be able to get unsecured loans at UGX300 interest only while KCB and Airtel customers can earn up to 9 percent interest on mobile savings.

The partnership 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 …

Banks continue to fill the impact of mobile money as it eats into their asset quality and profits despite partnering with telecoms.

According to a 2020 banking sector analysis report by Summit Consulting, increase in mobile money deposits has a negative connection to banks’ return on equity defined as the ability of a firm to generate profits from its shareholder’s investments in the company.

“High volume of mobile money transactions discourages customers from depositing with banks due to convenience,” the report read in part.

Accessibility and convenience of the telecom hosted platform have been boosted by the increase in the number of mobile money agents making it more attractive to the 27.9 million subscribers.

Deposits of mobile money accounted for 37.7 per cent of the slump on return on equity and deny banks of adequate deposits for investment, as most banks get money from customer deposits, which they lend out …

While digital lenders in Kenya have agreed that Kenyans indebted to more than one mobile lending application will no longer continue accessing loans from multiple lenders, the tables are turning.

In what could be a silent coup against these lenders, Kenyans feel that the tactics used by some of them to recover debt are overboard and breach barriers which should not be broken.

The Digital Lenders Association of Kenya’s (DLAK) desire is to have Credit Reference Bureaus (CRB) put in place a mechanism that will enable DLAK’s members to acquire a borrower’s credit history in real-time. The target is to lock out borrowers with poor credit scores if the proposal sails through.

Hostile treatment

However, while this has been done, borrowers feel that some of the lenders have been going overboard and even breaching privacy in their loan recovery mechanisms.

According to Ajua, an Integrated Customer experience company, Kenyans want …