African informal banking receives a boost
Banking on the African continent continues to be a challenge for a great deal of the population. It is generally expensive and often banks are inaccessible to rural “unbanked” communities.
The implementation of Simba cash in Uganda however, shows that innovative solutions can lead to low-cost banking.
Simba cash is a local money transfer service enabling users to visit any of the SIMBA Telecom branches across Uganda to utilise this low-cost transaction. Customers deposit the cash at the branch, and receive a password. After depositing the cash, the sender will then notify the recipient who will go to the nearest outlet and on presenting the password and identification, will be handed the cash. Transactions will be charged at 4% on average.
The key to this solution is that it is simple and straightforward to the customer, and has been made possible through a software solution developed and integrated by Jeshurun Consulting for Simba Telecom. SIMBA Telecom, in association with USAID's Rural Savings Promotion & Enhancement of Enterprise Development took the step to try to bring financial services to rural areas.
Simba Telecom Group Chairman Patrick Bitature says; "Unlike the other bigger banks and money transfer services, we are trying to focus on the non-banked local populations, with a key focus on addressing affordability issues, that have kept many people from using conventional money transfer services."
USAID Development Finance Specialist Jackie Wakweya adds; “Our organisation is keen to support private sector enterprises to develop innovative solutions that especially address increased access to financial services by those in need of them. The launch of this project is definitely a step in the right direction”.
