Airtel Uganda, in partnership with KCB Bank Uganda, today announced a partnership to roll out savings and loan products that will allow their customers to earn savings interest of 5% per year on regular savings at 9% per year on term deposits. Airtel Money Agents, meanwhile, will be able to borrow loans starting at UGX 300.
Offering an interest of 5%, the product is intended to revolutionize savings in Uganda by offering the best interest rate in the market.
âMost of our clients are unbanked with limited or no access to financial products, especially savings deposits. By offering competitive interest rates in an extremely simple product, we are trying to democratize savings and help create a savings culture in Uganda, âsaid Airtel Uganda Managing Director M Manoj Murali to reporters during a press briefing held at the Serena Hotel in Kampala. Adding that as a telco, they strongly believe that the products are the ideal approach to reach the unbanked population in Uganda and the rest of Africa.
The loan product will provide agents with quick access to Airtel Money floating financing, ensuring seamless service delivery.
âDigital financial services through mobile commerce rely on a network of agents who must have a sufficient balance of electronic money or physical money, called ‘float’ to meet the needs of their customers to cash or to withdraw electronic money. . The loan product will provide an affordable loan product that ensures better livelihoods for officers, âManoj said.
The savings and loan products are not only in line with the government’s agenda to deepen financial and digital inclusion in Uganda by 2040, they will enable Ugandans to access customizable and convenient banking services.
âDigital banking has played and still plays a central role in the industry’s financial inclusion efforts, as evidenced by the increase in mobile money transactions and the increase in the use of digital solutions over the years. Synergies like this create real-time and competitive solutions for Ugandans. We envision the growth of businesses and individuals and ease of access to financial solutions in this partnership, âsaid Mr. Edgar Byamah, Managing Director of KCB Bank.
Mr. Mackay Aomu, who heads national payments and settlements at the Central Bank of Uganda, praised KCB Bank Uganda and Airtel Uganda for the innovations and continued to support the government’s agenda to foster financial inclusion in Uganda.
Speaking to the media, Mackay said: âThis is a great victory for financial inclusion in Uganda. These products are a crucial response to our country’s efforts to empower millions of Ugandans through affordable credit and convenient savings.
Products launched include; Airtel Money Supersaver and KCB Airtel Agent Float Financing. Next month (July 2021), Airtel and KCB will launch the third product, a fixed savings account to its portfolio, which will allow Airtel Money customers to easily make deposits from 250,000 UGX. The client can commit to an investment period of 3, 6 and 12 months and earn 8%, 8.5% and 9% respectively. No deposit and withdrawal fees will be charged on this product which makes it very competitive in the market.
As for Airtel Money Supersaver, Airtel customers will be able to save by using Airtel Money. There are no setup fees, minimum balances and no charges on deposits and withdrawals will be incurred. Customers can save from UGX 500 at an interest rate of 5% per annum.
With KCB Airtel Agent Floating Funding Product, KCB and Airtel will provide short term unsecured floating loans to Airtel Agents by customers who initiate loan applications through Airtel Agent, and the loan is instantly credited to the customer’s Airtel portfolio.
Instant Unsecured Mobile Loans which are revolving credits for Airtel Money agents. Agents will be able to borrow up to 250,000 UGX for a period of 48 hours, for a one-time fee of only 300 UGX.