As the value of the mobile money transactions increase, non-performing assets or bad loans in banks have been increasing, see Figure 1. Why? You may ask. Banks are yet to integrate credit risk assessment between the Credit Reference Bureau and MoMo apps, which offer short term credit and quick fixes via the mobile phone. People prefer to take small loans over their mobile phones instead of servicing their loans. It is mobile money credit that is so convenient and easy to get. Accordingly, customers find it responsive to their needs. This is something banks’ risk departments must think about, especially…
Mobile money is a national security risk!
In 2015, Commercial Court Justice Christopher Madrama ruled in Katuntu vs Mtn Uganda Ltd & Anor that mobile money services offered by telecommunication companies, although acting as financial institutions lay outside the purview of the Bank of Uganda. This development prompted lawyer Mathew Kiwunda to sue the Attorney General, to prohibit government from continuing to levy, impose and collect taxes on all mobile money transactions in the country until proper legislation is enacted. Prominent lawyer, Fred Muwema has also put his gloves on in the ring and has threatened to sue the state, arguing that passing the mobile money tax…
Facts and fiction: mobile money innovation
Issue: Telecom companies continue to send to my inbox bulk emails of my bills for my data use. It’s inconveniencing and absurd. Some of their emails get blocked by my overzealous firewall, which deletes or junks them. The result is a disconnection of a bill I did not even see! Fact: Telecoms are in the mobile business. And with the growth of mobile money, a lot of investment must be put there to create mobile money as a platform to enable innovation and integration. The ultimate prize is for the telecom that makes it convenience for users. Case in point:…