Dial *165*5#: MTN launching MO-KASH August10 as Stanbic releases Interim results

August 6, 2016 in Business, Companies, Finance, Financial Services, Markets, Policy by Editor

August monetary policy statement due August 8

KAMPALA, AUGUST06 – MTN Uganda is set to unveil its M-Bank next Wednesday, a savings and loans product through subscribers to its mobile money platform will be able to access loans and earn interest on balances in their mobile wallet.

Sources familiar with the plans tell 256BN that the product that will accept savings from as low as Ushs50, will allocate loans basing on the individual customers airtime and mobile money transaction record. The individual customer’s credit ceiling will also be influenced by the amount of savings in their mobile wallet.

The money loans and savings have become viable as a result of the combination of SIM-card registration which ties a customer’s telephone number to a particular identity and the ongoing National ID registration. The platform is accessible via the *165*5# user code.

Meanwhile, Stanbic Bank will also announce its interim results for 2016 on August10 with numbers which while positive are expected to underline ongoing challenges the industry faces as the non-performing loan book reached a peak. NPL’s reached an industry average of 9percent although these are largely the result of a few high volume defaulters in a couple of financial institutions.

Stanbic is expected to report a 12 digit interim profit and provide updates on its diversification strategy that includes a move towards digital platforms for non-core transactions and new products in the commercial and investment banking portfolios.

Meanwhile, eyes are on the Bank of Uganda which releases its August monetary policy statement. The statement comes after two back to back rate cuts in April and June although its not clear what stance the central banker will choose amidst a rise in core inflation to 7.9 percent and persisting soft economic conditions.