PostBank Uganda, together with MTN Mobile Money (MoMo), has introduced XtraCash, a digital microlending service, to offer short-term loans to approximately 13 million MTN MoMo customers.
Customers will find it easier to handle financial issues as a result of this agreement since they would have convenient access to microloans for to cover their daily expenses.
Read also: MTN Ghana launches ‘Yellow Biz 4-in-One’ to help SMEs with advanced 4G internet solutions
PostBank Uganda CEO’s remarks on the initiative
Julius Kakeeto, Managing Director of Postbank Uganda, said the partnership aligned with PostBank’s goal to revolutionise financial access in order to promote prosperity.
Supporting this objective is the partnership with MTN MoMo, a leading entity in mobile money services, that allows customers to access funds “anytime and anywhere.”
XtraCash, according to Mr Kakeeto, will cater to the financial needs of individuals who often require funds to cover daily expenses.
“When we say ushering Ugandans to the money economy, we mean revolutionising the way people have access to money, that is, anytime and anywhere or as and when they need it”, Mr Kakeeto said.
The loans are specifically targeted at the unbanked population, who use mobile money for daily transactions, Mr Kakeeto added. By collaborating with MTN MoMo, PostBank aims to offer financial solutions to impoverished areas across Uganda.
Read also: MTN Congo breaks new ground with Central Africa’s first 5G network
MTN MoMo’s CEO reiterates commitment to promote financial inclusion
MTN MoMo’s CEO, Richard Yego, reaffirmed the company’s commitment to promoting financial inclusion.
He clarified that XtraCash is an evidence of their commitment to offer all Ugandans —notwithstanding location or economic status— safe and dependable financial services.
“XtraCash will empower marginalised and unbanked populations by making microloans accessible through mobile money, providing not only financial relief but also opportunities to improve livelihoods and support small businesses,” Mr Yego said in a statement.
“XtraCash is another step forward in our mission to provide reliable and secure financial solutions to millions of Ugandans who depend on mobile money every day,” Mr Yego stressed.
Both Messrs Yego and Kakeeto expressed optimism about XtraCash’s positive impacts, projecting that the service will help many Ugandans satisfy their urgent needs, especially in times of crisis, thereby promoting financial stability and economic empowerment.