Category: Interoperability

Right in the middle of the 2020 Covid-19 pandemic, Justine Namubiru was minding her business in Kawanda when some gentleman approached her and her colleagues and asked them if they were willing to join Buganda Kingdom’s Buladde Financial Services.

“We were told that Buladde would help us in saving and acquiring loans to develop our businesses. I was renting a kiosk then and I saw this as an opportunity to buy myself a bigger kiosk,” she recalls.

Namubiru and her colleagues reluctantly registered and went about their daily routines until a few weeks later when they were called and told that they were eligible for loans.

“I borrowed Shs 1m and I added it with the Shs 500,000 that I already had to buy a kiosk. I paid the loan back and even got a top-up to expand my business,” she says.

Similarly, Rehema Namugambe, a dealer in chicken and matooke at Masajja village, says she joined Buladde through a savings group of 12 members who collectively got a business loan.

“We get the money and each member boosts their business. With these loans, I have managed to expand my business and even put a facelift on my house,” she says.

Buladde.

According to John Mark Golooba, Buladde Financial Services is a microfinance that was started in 2016 with the major objective of helping members and Kabaka’s subjects to secure their land tenancy and improve their well-being through accessing affordable financial services.

“We have been working with several people to ensure that their settlements are secured like acquiring land titles, buying land, and accessing money to grow their businesses,” Golooba, the manager at Buladde, says.

He says Buladde currently has more than 3,000 members and a loan portfolio close to Shs 1.3bn.

“This has been an important initiative because several people were not able to access financial services in banks that need securities that many people don’t have. We came in to close that gap and ensure that people can access affordable services with unsecured loans,” he adds.

Golooba says that they target low-income earners by giving loans ranging from Shs 1m to Shs 30m.

“We believe that people who want more than Shs 30m can be able to access financial services from bigger banks,” he says.

On top of that, Golooba adds that they even have Kyapa loans to help bibanja owners secure their land tenancy and avoid evictions.

“Many tenants on land have been evicted by landlords because they lack the necessary ownership documents… So, we help these people to acquire these finances to cater to their financial needs or demands so that they can pay the landlords to also acquire titles,” he explains.

Not all rosy.

Golooba says that the past three years have been very challenging especially because of the business downturn brought by the Covid-19 pandemic and resultant lockdowns.

“The economy is also currently unstable. You find that our loan values that were being accessed have shrunk. People who were taking between Shs 5m and Shs 10m are now taking lesser loans because of the current economic conditions,” he says.

He is however happy with the blessing brought by the 40 Days 40 FinTech initiative which has at least helped them transition from analogue operations to digital operations.

“We didn’t have much concentration on finding out what it means to go digital. We believe that this initiative has helped us to find the best systems in place,” he says.

Buladde is the twenty-third participant in Season Four of the 40 Days 40 FinTechs initiative.

According to HiPipo CEO Innocent Kawooya, Buladde is one of the FinTechs that typifies this initiative’s idea of last-mile financial inclusion.

“Buladde is one of the participants that have been with us since season one. We are proud of the steps they have taken from paper-dominated operations to digital financial services,” he said.

Now in its fourth season, HiPipo’s 40 Days 40 FinTechs initiative has become a household name in the financial technology space of the East African region. In the last three editions, more than 100 FinTechs have been showcased, highlighting stories changing people’s lives, especially in the under-served sectors.

The 40 Days 40 FinTechs initiative is organised by HiPipo in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner, and Crosslake Technologies with generous support from the Bill and Melinda Gates Foundation.

In 2020, members of SAO Zirobwe Sacco in Luweero district were introduced to something ‘alien’. They were told that there was an electronic platform for them to deposit, save, withdraw or get a loan digitally. They just needed to download an Application on their phone or dial a given USSD number and start transacting.

“Sincerely I did not first buy it because personally I didn’t trust those digital things. I was afraid that I could lose my money without any trace,” recalls Edward Kisekka, a farmer in Zirobwe and member of the SAO Sacco.

Kisekka says that he had been saving and borrowing from this Sacco for more than 10 years and every time he needed a loan, he had to first visit the Sacco premises, fill out a few forms, declare his guarantor and get the money in cash.

“That’s is how we used to do it; now they were saying I could do all that using a phone,” he says.

Well, while Kisekka was primarily hesitant, he needed just six months to learn and appreciate this service called MSACCO.

“People started using it and I realised that it actually worked and I got onboarded too. It is indeed very convenient because I can easily transact with my phone from anywhere, anytime, even at night,” he says.

What is MSACCO?

MSACCO is a product of FutureLink Technologies, a Payment System Operator that works to enhance the financial resilience of Africa’s low and middle-income earners through a community-driven digital marketplace for affordable financial services.

According to Vincent Tumwijukye, the CEO and Co-founder of FutureLink Technologies, the MSACCO platform is an omni-channel that enables customers to access, assess and choose the most appropriate and affordable financial services.

Tumwijukye says that this platform was designed to help people grow personal savings, access affordable credit, and earn income in form of annual dividends by opening an account with any of the more than 300 SACCOs and MFIs that FutureLink works with.

“Regardless of what digital channel a customer prefers to use, (USSD or Mobile App), MSACCO gives a seamless user experience. So, if you have no relationship with any Sacco, you will be able to easily register. We have integrated with NIRA which means you don’t have to carry many documents; you just submit your NIN and we confirm with NIRA and we will be able to verify you and you join [a Sacco of your choice],” he says.

He adds that after signing up, one can actually request for a loan right away without going to a Sacco and the request will be received and processed in real-time.

“We work with the Credit Reference Bureau. This means that you don’t have to get a credit reference report…you just give us consent and we offer CRB to the lender,” he says.

Tumwijukye says that by introducing a marketplace for saving and lending institutions, FutureLink Technologies has helped many people such as Kisekka to benefit from this platform because of the convenience it brings.

“We have risen to be the kind of platform upon which financial cooperatives across the country are able to rely to access and serve their customers. These cooperatives have a transaction value of over 3.5 trillion and a total loan portfolio of about shs 400bn. We think that is a demonstration of community resilience,” he says.

Meanwhile, Isaac Yawe, a Credit Manager at SAO Zirobwe Sacco, says that since they enrolled for MSACCO in 2019, business has more than doubled.

“Most of our clients come for Boda Boda loans, business loans, agricultural loans, school fees loans, etc. Ever since we introduced them to the MSACCO platform, the numbers have grown exponentially because now they no longer need to come to our offices to transact,” he says.

Yawe says more women have enrolled on this platform than men.

“This Sacco started in 2003 and we now have over 15,065 members. Around 60 per cent of our members are women while 40 per cent are men. 40 per cent of our women members have enrolled on MSACCO compared to 20 per cent of the men that are using this digital platform,” he says.

40 Days 40 FinTechs

FutureLink Technologies is the 22nd participant in Season Four of the 40 Days 40 FinTechs initiative organised by HiPipo to shine a spotlight on innovative stories changing lives of people at the bottom of the pyramid.

Tumwijukye says that this initiative has played a very critical role in FinTech evolution because of the constant engagement between old-timers and new entrants which in the end creates market information and the resultant impact.

“For me being part of 40 Days 40 FinTechs is an opportunity to tell my story of 17 years [in this sector which other people can use and learn from],” he said.

The 40 Days 40 FinTechs initiative is organised in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Ideation Corner and Crosslake Technologies with generous support from the Bill and Melinda Gates Foundation.

Gloria Okwakunda is a very happy and contented woman. She is happy because of her reliable companion.

“My companion is PayLater. Ever since I joined this amazing service, my life has been smooth,” she says with a smile.

PayLater is an online hire purchase platform where people acquire products or travel and pay in equal monthly instalments for a period of six months. Although the company started in 2021, Okwakunda says she has been their customer for more than a year and currently has no complaints.

“They only requested my national ID and bank statement for the previous six months…After approving me, they gave me a product and I gave them a standing order from my bank for five months. I paid my first instalment,” she says, calling on the innovators of this initiative to introduce a Mobile Application to increase convenience.

According to Aaron Kasozi, General Manager for PayLater Uganda Limited, currently, a customer who wants to get products from PayLater will have to visit their website and navigate through the different categories such as furniture, home electronics, smartphones, perfumes, and car tyres, among others.

A user just needs to create an account and apply for the product on the website. After creating an account, they will receive a prompt email that will give them the requirements.

“We need them to present their national ID, and six months bank statement to show their cash inflows to show that they can pay for the product over a period of six months. They should be able to provide a standing order to do those payments,” he says.

“We have launched a new product on our site and it is travel now, pay later. This is exciting, indeed. People may want to take a holiday or promote local tourism but they don’t have the cash up front. If someone would like to take his family to Dubai or wherever we have those packages,” he adds.

Financial Inclusion.

Kasozi notes that one of the bottlenecks they have faced is the fact that many Ugandans are not banked. As a result, they are unable to use this service whose primary requirement is a bank statement.

 “Since we are offering a facility, we have to maybe look at those with bank accounts and in formal employment,” he says.

Secondly, most of the users are people using mobile money. So, they partner with financial services providers such as FlexiPay to process payments.

“Some clients prefer sending mobile money and there are direct bank standing orders. We have agreements with our suppliers and depending on how we agree on the terms and conditions,” he says.

He is thus grateful to the 40 Days 40 FinTechs initiative which is creating a synergy amongst all FinTechs.

“It also gives a platform for small and medium enterprises to be seen out there and allowed to grow or push whatever product they have,” he says.

Now in its fourth season, HiPipo’s 40 Days 40 FinTechs initiative has become a household name in the financial technology space of the East African region. In the last three editions, more than 100 FinTechs have been showcased, highlighting stories changing people’s lives, especially in the under-served sectors.

“This season we are happy to show the impact stories of these innovations. Today we are talking about a pertinent product of hire purchase. We have all had that moment when we want something but lack the necessary resources. PayLater is therefore providing a solution to a universal problem,” noted Innocent Kawooya, the CEO of HiPipo.

PayLater is the 20^th participant in season four of 40 Days 40 FinTechs organized by HiPipo in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Crosslake Technologies, and Ideation Corner with generous support from the Bill and Melinda Gates Foundation.

Public transport operators in Uganda struggle to balance books because of the disorganization in this sector. There is no clear monitoring of either taxi conductors, bus, or train wardens. In the end, the business owners are affected by accountability issues which leads to losses in terms of ticketing collections.

Even on the side of passengers, it is very hard, especially for the bus sector for people to find out how to easily book and pay for tickets.

It is this hustle that KaCyber, a transport technology company, was designed to solve through digital ticketing and payment systems for buses, trains, and ferries.

Launched in 2019, KaCyber offers a robust digital ticketing and payment platform for the public transport sector that runs on mobile and desktop computers. To date, they have processed more than 11 million tickets across buses and trains in Uganda.

Innocent Orikiiriza, the founder and CEO of KaCyber, says that transport operators are provided with ticketing gadgets that run an Application that transport operators use to issue tickets to travellers and also monitor sales for those who book online.

“We are following the trends and payment technology advancements. The system we developed mutually supports online and offline modes. In offline mode, the POS machine that we provide has been integrated to support payment by cash, mobile money, and pre-paid cards,” he says.

“At the moment, we have different numbers that we measure and the 11 million tickets are worth Shs 200bn. This is the transaction value that we have managed to collect using our system with transport operator partners,” he says, noting that they plan to introduce infrastructure that would allow clients to be able to offer multi-booking services.

And transport operators are impressed with the service.

“This is a good venture and makes work easier because even if I am not in the office, I can assess the returns, and check their reports without any problem,” says Gaddafi Muki, the Manager of Nile Coaches, Kampala Branch.

Slow adoption.

Orikiiriza says that just like other sectors, operators in the transport sector are still stuck in the traditional way of doing things, which is slowing the adoption of digital services.

“Public transport is heavily informal and everyone has their way on how things move. We find it challenging to convince transport operators that they can adopt a full digital solution to provide E-ticketing services,” he says.

This is evident in the way transport operators are complaining about the many features that were added such as IDs, destination, starting journey, and next of kin.

“Initially, we used to do only the names and telephone numbers of customers. They have now added features of occupation, NIN, and signatures, which is a waste of time on a bus. KaCyber should not add more features because we are businessmen who must work fast with passengers. When you keep filling in many things, it wastes time,” says one bus operator.

Orikiiriza is however grateful to the 40 Days 40 FinTechs initiative that has improved the visibility of start-ups such as KaCyber and improved stakeholder engagement through activities that bring together all the key players.

KaCyber Technologies is the nineteenth participant in the 2023 40 Days 40 FinTechs initiative.

Now in the fourth season, HiPipo’s 40 Days 40 FinTechs initiative has become a household name in the financial technology space of the East African region. In the last three editions, more than 100 FinTechs have been showcased, highlighting stories changing people’s lives, especially in the under-served sectors.

HiPipo CEO Innocent Kawooya appreciated the impact created by the likes of KaCyber by easing the booking of travel tickets because this is in line with the principle of including everyone.

“This year our main focus is the impact of these initiatives on the people at the bottom of the pyramid. We are pleased with the success stories in the transport sector where people are beginning to appreciate e-ticketing for the smooth running of the business,” Kawooya said.

The 40 Days 40 FinTechs initiative is run by HiPipo in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Crosslake Technologies, and Ideation Corner with generous support from the Bill and Melinda Gates Foundation.

For any businessman, anyone who can provide them with quick and cheap credit will definitely be their friend.

So, when Edward Mubangizi was introduced to Social Lend Africa, he saw it as a good opportunity to improve his supermarket business in Kisaasi.

“My friend told me that their financial services are friendly. I checked them out and downloaded their mobile Application. They requested to visit my businesses and they did it. They took a record of my stock and everything. The next step was asking me for the amount that I required,” he recalls.

Since then, Mubangizi has used the Social Lend platform without any challenges.

According to Marvin Peter Akankwasa, the CEO of Social Lend Africa Tech Limited, they came up with this digital lending peer-to-peer business marketplace to create a meeting point for lenders and borrowers.

“On one hand, we have borrowers who lack access to formal funding while on the other hand, we have lenders who lack operational processes to streamline their lending operations,” he says.

Akankwasa argues that at least 23 percent of the 1.5 million small businesses in Uganda are unable to access formal funding from financial institutions like banks.

“We have lenders who are engaged in predatory lending processes and lend with interest of up to 50 percent monthly,” he says.

Social Lend Africa brings different stakeholders together to create an equitable platform where both lenders and borrowers can get a fair deal.

“Borrowers get to borrow at affordable rates from 3 percent to 5 percent because most of their businesses, according to our survey, show that they don’t make more than 45% in their profit margin. Lenders get to enjoy our technology which analyses borrowers and scores them using smart algorithms so that they lend their money safely and profitably,” he says.

For a borrower to qualify, they must submit their contact and other Know Your Customer (KYC) information such as bio-data, national ID, and location.

“For businesses, we also take proof of business, ownership of the business, tax clearance certificates, and other compliance requirements,” Akankwasa says.

For lenders, all they need is proof of source of funds [is it employment or business].

“They don’t need a license to lend because we are already licensed to do that,” he says.

Akankwasa reveals that they have managed to put together a network of over 50 lenders and micro-lenders.

“We have reviewed over 3,000 loan applications and approved over 85 percent of them. We have also managed to get more than 900 downloads of the APP,” he says.

Akankwasa says that since they rely a lot on third-party aggregators who operate commission-based models, they are sometimes charged much more than they would love to.

“Some go as high as 3 percent. If a borrower is paying back about Shs 1m, then, they have to top up Shs 30,000 which makes using the platform incredibly expensive,” he says.

He is however happy that the 40 Days 40 FinTechs initiative is introducing a better community streamlining payments and making them cheaper and affordable for end-users.

Social Lend Africa is the 17th participant in Season Four of the 40 Days 40 FinTechs initiative organized by HiPipo to shine a light on emerging stories changing lives using financial technology.

This initiative is run by HiPipo in partnership with the Level One Project, Mojaloop Foundation, INFITX, Cyberplc Academy, Crosslake Technologies, and Ideation Corner with generous support from the Bill and Melinda Gates Foundation.

Life-changing stories from more than 100 FinTechs have been highlighted by this initiative in the past three years.