The Commercial Bank of Africa (CBA) has issued about Sh857 million in loans to Ugandans subscribed through its mobile banking platform, MoKash, which was launched a year ago.
The statistics were disclosed by MTN Uganda, CBA’s telecom partner, which added that the MoKash service has approved over one million loans to 2.5 million customers, a half of who are also actively saving on the platform.
The Nairobi-based lender on August 9, last year unveiled MoKash in partnership with MTN Uganda, seeking to replicate the runaway success that it has had with M-Shwari in Kenya.
MoKash, just like M-Shwari is a suite of virtual banking products built on MTN’s mobile money platform where users can save and borrow micro-loans from CBA which has branches in Uganda.
“At MTN, our mission is to make customer’s lives a whole lot brighter and we introduced MoKash to give customers more services to enable them achieve their goals,” Elsa Muzzolini, MTN Uganda general manager of mobile financial services, said in a statement.
MoKash customers can borrow from Sh85 to a maximum of Sh28,500 depending on their loan limit which is a factor of their mobile money usage and their repayment histories.
Loans attract a nine per cent facilitation fee and is valid for 30 days.
Launched in 2012 on the Safaricom mobile money application, M-Shwari has become a key growth driver for CBA.
In Kenya, the service processes over 80,000 loans per day and a customer base of over 16 million.
CBA operates the mobile banking service (under different names and partners) in Tanzania and Rwanda.