MTN MoMo partners with XENO to bolster financial inclusion

In a bid to further drive financial inclusion, MTN Mobile Money Limited Uganda yesterday launched a partnership with XENO to extend investment management services to more Ugandans, conveniently through the robust, accessible, and widely-used MTN MoMo platform.

XENO services can be accessed by even non-smartphone users via *165*5*7#.

Launched in 2017 and licensed and regulated by the Capital Markets Authority (CMA) as a fund manager and Collective Investment Scheme Manager, XENO is a goal-based saving and investment service that helps individuals, families, groups, and institutions to plan, save, and invest for their financial goals.

XENO offers a digital saving and investing platform which allows individuals to set goals and open investment accounts to save and invest towards those goals.

Following the partnership between MTN MoMo and XENO, individuals will be able to use the MTN MoMo platform to set up their investment accounts, top-up their accounts, and track their XENO accounts, with ease.

Speaking at the launch of the partnership, Richard Yego, the MTN MoMo Uganda managing director said that this partnership underpins MTN’s commitment to leading digital solutions for Africa’s progress.

“Financial inclusion is at the core of all our innovations at MTN MoMo. We believe that through partnering with XENO Limited, more Ugandans shall get access to a life-changing financial service that will afford them financial security and growth,” Yego said.

Investment expert, Aeko Ongodia, the founder and Chief Executive Officer at XENO noted that only 10% of the Ugandan working population have a basic investment account (through retirement schemes such as NSSF and other occupational schemes).

He further lamented that outside of retirement accounts, less than 0.2% of Uganda’s labour force has a formal investment account that can grow their savings to help them achieve their financial goals.

Until XENO came along, no fund manager was focused on designing products for the average person, something that has adversely affected the country’s saving culture and inevitably, their personal and national economic growth at large.

"XENO is therefore partnering with MTN in a bid to extend its much-needed investment management services to more Ugandans to enable them to save and grow their finances with a trusted and secure service provider," Ongodia said.

The chief guest, Michael Atingi-Ego, the deputy director of Bank of Uganda lauded the partnership, citing that it would drive the nation’s economic growth agenda by encouraging and supporting savings by the masses.

"I congratulate MTN Mobile Money services and XENO investments for extending such a critical and important service closer to more Ugandans. This service will secure the financial future of our people," Atingi-Ego said.

According to Ongodia, XENO receives money from various members of the public and invests it on their behalf in carefully selected asset classes across the East African region using XENO’s unit trust funds.

XENO currently manages four unit trust funds: XENO Uganda Money Market Fund, XENO Uganda Bond Fund, XENO Uganda Domestic Equity Fund, and XENO Uganda Regional Equity Fund.

Investors earn a return on their money per year depending on the performance of the underlying assets. However, XENO does not offer loans and credit services, as it is a fund and investment service provider and not a bank.

As of June 30, 2022, XENO had over 20,000 users registered on their platform and these had collectively invested over Shs 40 billion towards their goals.

MTN customers can join XENO by simply dialling *165*5*7# to set up their financial goals and start saving towards them with as low as Shs 10,000/

Additionally, they can track their investment accounts on MTN MoMo after 3 business days from the time of activating their investment accounts.