NCBA Bank Uganda has partnered with MTN Uganda to launch a mobile loan initiative themed "Mo Money with More Mokash." This campaign is designed to enhance access to micro-loans and savings for individuals across Uganda, reflecting a significant evolution in mobile phone lending in the country.
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The partnership continues a trend initiated in 2016 when the Commercial Bank of Africa (now part of NCBA) teamed up with MTN to introduce MoKash, a product that allowed users to save and borrow money using their mobile phones.
Since its inception, MoKash has shown remarkable success, registering millions of users and disbursing billions of shillings in loans. The concept has grown substantially, with various banks in Uganda now offering similar services that allow loans to be processed and disbursed entirely via mobile phones.
The Mo Money with More Mokash campaign aims to further enhance financial inclusion in Uganda. By leveraging MTN's extensive mobile network and NCBA's financial services expertise, the initiative seeks to provide a swift and convenient means for Ugandans to access loans.
This is expected to empower individuals and small businesses with much-needed financial support, aligning with broader goals of promoting digital financial services and improving access to credit in the country.
This collaboration between NCBA and MTN is particularly significant in a country where many people still lack access to traditional banking services. Mobile money platforms have become a critical tool for financial inclusion in Uganda, enabling people to perform financial transactions conveniently and securely.
The ability to apply for and receive loans via a mobile phone eliminates the need for physical bank visits, which can be a barrier for those in remote areas or those without formal banking relationships.
MTN Uganda's Chief Executive Officer, Sylvia Mulinge, highlighted that the new service will not only enhance the customer experience but also contribute to economic growth by providing more Ugandans with access to essential financial services.
This move is expected to spur entrepreneurial activities and help individuals manage their financial needs more effectively. The initiative is particularly aimed at those who have been traditionally underserved by the financial sector, providing them with opportunities to improve their economic standing and participate more fully in the economy.
The MoKash service has already demonstrated success since its inception. By the end of 2020, it had registered millions of users and disbursed billions of shillings in loans, underscoring the demand for mobile-based financial solutions in Uganda.
The new campaign builds on this success, introducing additional features and benefits to attract even more users and provide greater value. For instance, the service offers improved loan terms and higher loan limits, making it even more attractive for users in need of financial assistance.
One of the key advantages of the Mo Money with More Mokash campaign is its potential to drive financial inclusion in rural areas where access to traditional banking services is limited. Mobile penetration in Uganda is high, with many people owning mobile phones even in remote areas.
This provides a ready platform for mobile banking services, making financial products accessible to a broader population. The initiative also includes educational components to help users understand how to use the service effectively and manage their finances better.
The partnership between NCBA and MTN Uganda represents a forward-thinking approach to banking and financial services. By leveraging technology, the initiative breaks down barriers and creates new opportunities for financial inclusion.
As mobile phone penetration continues to rise in Uganda, such initiatives are likely to play an increasingly important role in the country's financial landscape, helping to drive economic development and improve the quality of life for many Ugandans.
This collaboration is not just about providing loans but also about developing a culture of saving and financial literacy, which are essential components for sustainable economic growth.
