KCB Bank Uganda and Airtel Uganda have on June 1 rolled out a variety of mobile financial solutions for customers in Uganda through Airtel Money.
The fully automated digital products include; Instant Unsecured Mobile Loans, Regular Savings and Fixed Deposit Savings Accounts that enables customers borrow mobile loans for as low as shs300 and earn interest on savings for as high 9%, respectively.
Edgar Byamah, the managing director, KCB Bank Uganda, said that digital banking is still playing a pivotal role in the industry’s financial inclusion efforts as demonstrated by the rise in mobile money transactions and increase in the usage of digital solutions over the years.
According to the Uganda Communication Commission (UCC), Q4 Market Report of 2020, Uganda registered commendable growth in new mobile money accounts with 2.6 million new accounts registered between January and December.
In the quarter ending December 2020, the total active mobile money accounts stood at 22.5 million up from 20.9 million in the first quarter.
On the business side, the number of active mobile agents had grown to 235,790 from 227,736 in September. For the first time ever, the number of mobile money transactions crossed the 1 billion transactions mark.
“As a bank, our commitment is to enable our customers to go ahead by leading in innovation and technology-driven banking services delivered through alternative banking platforms, real-time banking options and cashless transactions,” Byamah said.
Airtel Uganda Managing director, Manoj Murali expressed confidence that their partnership with KCB Bank Uganda will deliver affordable, safe and secure financial services that will improve the lives of Ugandans.
He observed that there has been a year-on-year surge in the use of both feature and smart mobile phones in Uganda which has led to an increase in the number of people that rely on mobile money services whether for business or sending money to their loved ones.
“Today, the mobile phone is more than just a tool for communication. It is a source of information and a one-stop centre for financial services,” he said.
Michael Ssekyondwa, head of Retail Banking, KCB Bank Uganda explained that the partnership is aimed at providing quick access to Airtel Money float financing and encouraging everyone to save in a convenient manner.
“The first product is instant Unsecured Mobile Loans which is revolving credit for Airtel Money agents. These will be able to borrow up to Shs 250,000 for a period of 48 hrs, at a fee of only Shs 300,” he said.
He noted that the third product is the Fixed Savings Account which will enable Airtel Money customers conveniently make deposits from Shs 250,000 upwards.