Telecommunication service providers and the banking industry are fast joining together to exploit the power of synergies as a way of growing their revenues. Mobile money has grown from just sending and receiving money on a mobile phone to a full, comprehensive service including paying bills, banking online, applying for loans and much more.
This trend has made it increasingly difficult for banks to stay competitive in the market without partnering with telecoms operators on their mobile money platforms. Customers can access their bank accounts, as well as all their banking services, via their mobile phone.
MTN Uganda General Manager for Mobile Financial Services, Phrase Lubega, said: “Mobile wallets are especially useful to clients to effectively reach out to their beneficiaries with timely payments, while mitigating the risks of fraud and theft associated with cash payments.”
Lubega said the partnerships are helping both the banks and the telecoms operators to grow, by bringing money that was originally outside the formal financial system into the latter, with a view to promoting financial inclusion.