VODACOM Tanzania’s Songesha service has issued over 2.0bn/-within two months since it was introduced to the market, according to GSMA State of Industry Report on Mobile Money in 2018.
The report said the service under M-Pesa portfolio, jointly offered by Voda and TPB Bank as underwriter, exceeded expectations after hitting 800,000 subscriptions within the two month.
“This stellar performance of Songesha signals that we are entering a new era where technology is challenging regulations making access to credit as easy as the literal press of buttons,” the report issued recently said.
GSMA said mobile financial services are among the most promising financial systems in the developing world.
These services which are already enabling financial inclusion in emerging economies have been forecasted to be platforms that will transform economies at a megascale as they are adopted into other sectors like commerce, health care, agriculture, and so much more.
In June, Vodacom Tanzania partnered with TPB Bank and launch ‘M-Pesa Songesha’ an overdraft solution that was born out of data insights into customers transactional behaviours.
Vodacom M-Commerce Director, Epimack Mbeteni said in statement that the new overdraft facility was born out of necessity.
“When we looked closely at the habits of our M-Pesa customers, we noted that on a daily basis, some of our customers’ transactions failed due to a shortage of funds in their wallets, this inspired us to respond with an innovative solution–an overdraft facility,” Mr Mbeteni said.
According to GSMA mobile money systems such as M-Pesa have transformed the way businesses operate in developing nations like Tanzania.
Since its introduction in 2008, M-Pesa has been making headway into becoming the payment method of choice across Tanzania given that its use poses lower risks than informal payment methods.
About half of adults in Tanzania are said to be using mobile money, and a big chunk don’t have bank accounts- meaning the technology has created more access to financial services for millions of unbanked Tanzanians.
“There also has been an upsurge of banks teaming up with the mobile-moneyservice providers to develop multiple financial services to increase access to banking services like overdraft and loans,” the report said
. According to the World Bank, The disparity in access to credit between the developed and developing world is huge.
The World Bank research showed that micro, small and medium-sized enterprises (MSMEs), in developing countries are disproportionately affected by poor access to credit.
“Access to credit services has helped people remain more financially stable over time, bridge the wage gap between the rich and the poor and increase the quality of life in developing nations,” GSMA report showed.
Voda, five years ago, rolled out M-Pawa in collaboration with Commercial Bank of Africa (CBA), since inception the service has provided savings and microloans to over 8 million Tanzanians.