MTN Mobile Money (MoMo) CFO Sarah Bateta Okwi recently highlighted the strides being made in the financial inclusion of women through the digitisation of banking services.
Speaking at the Women Investment Breakfast hosted by Capital Markets Authority (CMA) Uganda in partnership with Uganda Securities Exchange, she observed that mobile money services had enhanced access to capital markets by enabling people who do not hold bank accounts to transact on their mobile accounts, providing them with credit and savings options. During the event, which was held to commemorate World Investor Week 2024, women entrepreneurs discussed business financing options available in the capital markets.
Sarah, who joined MTN Mobile Money in May 2022, highlighted how mobile banking technology had enhanced access to financial services, noting that the requirement for a bank account had previously shut out many women. This has driven inclusion, connecting more people to banking services.
“Out of our active mobile money users, 47 percent are women. At least we know that we are close to half of the participation. When it comes to MoMo pay, which is a payment service we have been enrolling for the last three years that will reach everyone at any point, even the duka near your home can have a MoMo pay, where we can do e-cash payments. We have 44 percent of women participating in that space,” Sarah said.
According to the 2023 Uganda Bankers’ Association Banking Sector Report, the use of formal financial services is largely driven by mobile money, which is used for remittances and plays a crucial role in financial inclusion. 64 percent of Ugandan adults, totalling 15.8 million, are registered for mobile money, followed by savings and credit cooperative societies (SACCOs) at 36.4percent and Banks at 14 percent. Sarah also pointed out that e-wallets, enabled by mobile money, had made it possible to transact without cold cash.
“This technological development is what has furthered the investment that we are talking about. In reaching the 13 million customers, we actually go through agents and agents are small businesses. If you think through how many agents you interact with, most of these people are actually ladies, if you have taken note. MTN is empowering these women by putting money in their pockets. Being an agent, you are earning money and you are able to sell,” she said.
Access to credit
Whereas banks often require securities or collateral such as land titles, Sarah noted that mobile lending offered women-owned businesses unsecured loans with few formalities.
“So all of these services are actually helping a woman put money in their pocket. They are helping to grow. They are financiers and are also giving an opportunity for investments, because most of our loan products have a loan facility as well as savings. So while you borrow, you can have some money that you actually put aside for saving that will be able to realise interest for you,” she said.
Sarah disclosed that MTN had provided the women in its supplier base with training in financial literacy to support their entrepreneurial ambitions. This came after the organisation noted that the few women suppliers it had were shying away from capital-intensive business opportunities such as advertising, marketing, and technology and pursuing more traditional paths such as floral and cleaning services.
“As part of our programme that I talked about, we actually take them through digital skills and financial management, which is very key. If you do not keep your financial records well, there is no way you can record growth. There is no way you can know whether you're actually growing or not. You won't be able to sell your business even when there's an investor that is ready to help. My call to all of us is to keep good financial records of everything we do. Our side hustles, our personal expenses, everything. It will help us to progress,” she said.
