MTN has partnered with Commercial Bank of Africa (CBA) to launch its mobile-based banking service – MoKash – in Uganda.
The unveiling of the MoKash service in Uganda comes less than a month after the telco launched it in its Rwanda subsidiary in mid February.
The service – whose features are similar to those of Safaricom’s M-Shwari in Kenya (also offered in partnership with CBA), has its name coined from an English phrase ‘More cash’. The service is operated entirely from the subscriber’s mobile phone, with no forms or additional documents required for sign up once a subscriber has registered their details on MTN’s Mobile Money platform.
“MoKash is a suite of banking products offered to MTN Mobile Money customers via their mobile phone to enhance the MTN Mobile Money value proposition. MoKash offers customers both a Deposit and a Loan product that are convenient, reliable and cost-effective for making micro-savings and taking micro-loans…. This new service allows you to save your money safely in your phone with ease thereby helping you save for your goals,” notes a CBA on its website.
“MoKash is a service that gives MTN customers the ability to save and borrow using their phones. Customers can save while earning an interest or take out short term loans. The service is a result of a strategic partnership between Commercial Bank of Africa and MTN.”
To subscribe to MoKash, MTN Uganda clients – currently estimated to be about 9.9 million – have to dial *165*5# and enter their MTN Mobile Money PIN then begin using the service. Apart from saving and earning interest, MoKash customers can also borrow using their phones.
Below are the Interest Rates on Savings:
|Amount (Ug Shillings)||Interest|
|1 – 300,000||2%|
|300,001 – 800,000||3%|
|800,001 – 1,600,000||4%|
A subscriber’s MoKash loan limit is determined by utilization of the network’s Voice, Mobile Money and Data services as well as how long the customer has been on the MTN network.