CBA (Commercial Bank of Africa) Uganda, has applied for a license to launch an M Shwari replica. The Institution wrote to the bank of the Bank Uganda for an approval to launch a savings and loans mobile service by April in collaboration with MTN.
In 2014, CBA launched a similar product in Tanzania known as M-Pawa. This was made possible through a partnership the bank entered with Vodacom.
“We are seeking approval of the central bank before we can launch the product by the end of the first quarter of 2016,” said Samuel Odeke, the CBA Uganda chief executive.
“We are working with the mobile operator, MTN, to test the product that will help develop the culture of savings and access to financial services. There are various regulatory requirements we have to meet as prescribed by BoU.”
M-Shwari has gained recognition across East Africa with more than Sh153 billion deposits. According to the bank, they process an average of 70,000 M-Shwari loans daily.
“The product is already in Tanzania and, in line with our strategy of extending the Kenyan model to all our subsidiaries, we have sought approval to launch it in Uganda,” Chris Pasha, CBA Group’s head of marketing said.
Pasha added that Uganda stands in a good position to have a larger market share in mobile money that will expand the country’s economy.
Since its launch, the pay day loan is a lucrative venture for Safaricom and it’s not going to die anytime soon.
As a competition gesture,KCB introduced a competitor to M-Pesa’s M-Shwari, M-Benki.
The service provider allows you to borrow, deposit, and withdraw funds from the comfort of your home. M-Benki linked both M-Kesho and M Shwari and it has reliable services.
The continuous growth of mobile money places East Africa on the map. Most Telecommunication companies use Safaricom as a reference point when it comes to providing favorable services to people.