MTN Mobile Money Uganda Limited and Jumo, a technology company building next-generation financial services for emerging markets, have launched MoSente, a new service that allows MTN customers to access credit facilities.
Described as easily accessible, real-time, and easily available to registered MTN subscribers and mobile money users, MoSente allows customers to borrow from Shs10,000 (just under US$3) at a variable term that suits their circumstances. Would-be borrowers simply dial a specific code and follow a series of prompts.
MTN currently represents more than half the mobile subscribers in Uganda, enabling it to target somewhere in the region of 15 million people with MoSente.
One focus of the offer is said to be supporting entrepreneurs who need simple, quick access to working capital to grow their businesses. Equally, given that large segments of the population are still unbanked, in large part due to lack of access to easy and convenient credit, this initiative could help to advance financial inclusion.
This isn’t a first for either company. MTN has operated a similar credit service called MoKash on its Mobile Financial Services Platform since 2016, while Jumo has operated mobile lending products in partnership with other mobile network providers for the last five years.
For example, late last year it partnered with Absa Bank and Tigo in Tanzania to increase the availability of the existing short-term credit product Tigo Nivushe, a mobile lending product.