MTN Mobile Money customers can now save, earn interest and access short-term loans using their mobile phones. It is only MTN for now, but it is such a dream milestone that you can’t help wish that, like mobile money service that is now run by every telecom, this new development does as well.
MTN Rwanda, in partnership with Commercial Bank of Africa (CBA), have launched the ground-breaking savings and loans product, MoKash. The Government has been laying infrastructure, both physical and psychological, to transform Rwanda into a cashless economy.
From mobile money to credit cards and other innovations such as Tap&Pay and other cashless technologies, the financial milieu has been changing rapidly over the years, giving citizens a variety of choice. However, the challenges remain. Some of these technologies involve the use of smartphones, while, generally, mobile phone penetration still remains relatively low in the country.
Addressing the penetration challenge would help put more citizens on these cashless financial portfolios. As well, MoKash poses further challenges to conventional banking sector that will have to adjust in many ways to struggle with the competition that has long been stiffened by the advent of mobile money service.
Already, banks have taken their services to people’s hands by embracing mobile banking services. But the competition now is that while people have been using mobile phones to carry out transactions for the banks, now they will do it for telecoms. As the competition gets stiffer, it’s the consumers who will benefit more. The same goes for the economy.
For long, mobile phones have been executing tasks that were previously a preserve of conventional banks but MoKash presents even more palatable ground for savings and access to finance. Financial inclusion is now further spread to the people.
With this new technological breakthrough, the ideals of savings culture should now be fanned to cash up like a bushfire. This is something that can just about popularise itself. All it takes is for citizens to know how to use it.
However, with more access to credit at one’s fingertip, it means teaching financial discipline would be on the agenda to help people understand how to maintain sobriety in using their funds.