Rwandans to Save, Apply for Mobile Money Loans on Phone

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The evolution of technology and integration of the banking and telecom sectors has birthed a new product that will enable MTN mobile money customers to save and earn interest and to take loans on a short term basis using their mobile handsets.

MTN –Rwanda in collaboration with Commercial Bank of Africa (CBA) has today launched the highly anticipated Mobile Money savings and loans product, dubbed MoKash.

MoKash allows MTN Mobile Money customers to conveniently borrow as much as 300,000Rwf as well as save as little as 100Rwf, while earning interest of up to 7 percent.

Additionally, the customer can setup an auto-savings arrangement to periodically make deposits to their MoKash account as well as check their savings balance and loan account status.

To use this service, the customer has to be an active MTN Mobile Money subscriber, dial *182# and select MoKash to agree to the terms of the service in order activate the MoKash savings and loan account with CBA.

While unveiling of the product at Kigali Serena Hotel, MTN CEO Bart Hofker attributed the success of MTN Mobile Money to continuous innovation by the company while aligning itself with the government’s drive to digitise the economy.

In countries like Kenya and Tanzania, telecom operators who have partnered with CBA (bank) have reported overwhelming success.

This means MTN Rwanda is just replicating such success in a market that is so highly competitive.

The service is expected to enhance Rwanda’s financial inclusion agenda as it makes it possible for people to easily use the service without having to fill in any documents while opening the account.  In addition, no minimum balance is required, and no transactional charges are incurred while moving money between MoKash and MTN Mobile Money.

CBA’s Group Managing Director, Isaac Awuondo said, “We are delighted to build on the success of MTN’s Mobile Money service to offer a digitally delivered Savings and Loans solution. Savings and Loans solutions are especially critical to lowering the vulnerability of households to financial shocks and motivating productive investments.

When savings and lending solutions are delivered digitally, we greatly lower the access barriers for households that are typically underserved by formal financial services providers. This is particularly relevant for women and youth. Through this innovative service, CBA is proud to serve 26 million customers in Kenya, Tanzania, Uganda, and now in Rwanda”.

With over 1 million active Mobile Money subscribers, MTN is CBA’s choice as the delivery partner for MoKash because of its extensive coverage of the country coupled with its strong Mobile Money Agent network, which will allow for the rapid uptake of this product in Rwanda.

According to RURA, as of December 2016, over 8,9million Rwandans are active mobile subscribers, with over 4 million of those on the MTN network.

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