UGANDA: MTN Mobile Money achieves 100% growth in digital lending

MTN Mobile Money (MoMo) has reported outstanding growth in its digital lending portfolio, marking a 100% increase over the past 12 months.

The success of its digital lending program, launched in January, has played a pivotal role in expanding the company’s financial services.

According to Richard Yego, the Managing Director of MTN MoMo, the portfolio now includes four loan products—Extra Cash, More Cash, More PESA, and Mopesa which cater to a diverse range of customers and needs.

Speaking to journalists, Yego emphasised that digital lending has been a key driver of financial inclusion, with loans and savings products empowering millions of customers.

“The growth we’ve seen in the last year underscores the growing trust in mobile money solutions and their ability to meet the financial needs of our customers,” Yego remarked.

The launch of the new loan products has helped the platform expand its reach and significantly improve its disbursement figures.

In the first quarter of this year alone, loan disbursements tripled, a trend that has continued throughout the year. This boost has made MTN MoMo a leader in the digital lending space, particularly in markets where access to traditional banking is limited.

Yego explained that the product offering caters to varying customer needs, from small micro-loans to larger sums, making it an attractive option for a wide range of users.

The most popular product in the past nine months has been More PESA, which offers higher loan limits, ranging from Shs 200,000 to 300,000.

“With its higher loan ceilings, More PESA quickly became the favorite of our customers, and it led the disbursement figures in Q1, with Shs 200 billion being distributed monthly,” said Yego.

This success reflects the growing demand for more flexible and accessible financial products in the region.

Meanwhile, Extra Cash, which initially started slowly, has gained substantial traction due to its small loan amounts. This product has attracted a broad user base and is now one of the most widely used.

Yego revealed that the transaction base for Extra Cash has almost doubled this year, with over 2 million active borrowers utilising it.

Each of the four loan products has contributed at least 20% to the total disbursement figures for the past nine months, highlighting their broad appeal and effective reach.

In addition to the growth in digital lending, MTN MoMo has seen a significant increase in cashless transactions. The number of transactions has grown by 57%, from 16 million to 25 million, while the total transaction value has increased from Shs 1.4 trillion to Shs 2.1 trillion.

“The disbursement of Shs 990 billion over nine months shows our strong performance as we move towards our year-end target of Shs 1.2 trillion,” Yego said.

Looking ahead, MTN MoMo has set ambitious targets for 2025, aiming to surpass Shs 2 trillion in disbursements. “Our focus for the coming year is to expand our reach and empower even more customers through financial inclusion,” Yego noted.

As part of this effort, MTN MoMo is exploring key partnerships, including collaborations with the World Food Programme (WFP), the United Nations High Commissioner for Refugees (UNHCR), and the government.

These partnerships have facilitated the disbursement of USD 7.8 million in financial aid to refugees via mobile money platforms.

The company has also introduced a revamped overdraft facility, MoMo Advance, to help customers complete transactions when they fall short of funds. Launched in September, this service has been well-received, further enhancing the platform’s appeal.

MTN MoMo’s rapid growth is also reflected in its expanding customer base, which increased from 12.06 million at the end of 2023 to 13.6 million by mid-2024.

“Our target is to reach 40 million active users by the end of this year,” Yego stated, emphasising the company’s commitment to increasing purchasing power through greater financial inclusion.

Regarding security and fraud prevention, Yego assured customers that MTN MoMo has taken significant steps to protect its users.

A dedicated 24/7 risk monitoring team tracks transactions daily, flagging unusual patterns and verifying suspicious activities with partners.

“Compared to the previous two years, we’ve seen fewer instances of fraud, which is a testament to the effectiveness of our security measures,” Yego added.

As MTN MoMo continues to scale its services, it remains committed to fostering financial inclusion and providing accessible, secure, and efficient financial solutions for millions of customers across the region.

SOURCE:NILEPOST