FINCA Uganda Partners with SafeBoda to Provide Mobile Fintech Product
Through its new partnership with SafeBoda, FINCA Uganda will provide loans and other financial products to motorcycle taxi riders.
November 6, 2018, Kampala, Uganda – FINCA Uganda launched a pilot project with the motorcycle rideshare platform SafeBoda to offer digital financial services to motorcycle taxi riders. During the three-month pilot phase, the fintech innovation will enable 65 SafeBoda riders to deposit a portion of their weekly earnings directly into a FINCA Uganda savings account via the SafeBoda driver app.
The FINCA Uganda partnership with SafeBoda promises to expand financial inclusion and give riders the opportunity to earn higher net incomes.
SafeBoda riders currently earn an average monthly income of more than USD250, more than twice the national average. However, only 30% of riders own personal motorcycles. The remaining riders resort to renting a motorcycle, which takes a chunk out of their monthly net income. Moreover, because most riders are unbanked and lack significant collateral, getting a loan to purchase a motorbike isn’t easy. Access to responsible financial products and services enabled by fintech innovation can help change that.
Following the three-month pilot phase, the mobile savings product will be made available to all 5,000 SafeBoda riders in Kampala. In 2019, utilizing data collected by SafeBoda on the weekly activity and earnings of riders, FINCA Uganda will design a SafeBoda loan scorecard and offer financing to creditworthy riders.
“Through our partnership with SafeBoda, we will offer credit for riders to purchase their own motorcycles”, said FINCA Uganda CEO James Onyutta. “Starting with a secure mobile savings product and eventually providing loans to creditworthy riders, the endpoint is to enable riders to take control of their financial futures.”
Riders will be able to use the app directly to apply for a loan, with their SafeBoda driving history used to establish creditworthiness even in the absence of significant collateral or savings. Moreover, SafeBoda provides all the necessary Know Your Customer (KYC) information. FINCA Uganda plans to fully integrate the app with its core banking system in 2019.
In addition to digital savings and credit products, SafeBoda riders will have access to medical and accident insurance products provided by a third-party company as well as financial literacy training.
The collaboration with SafeBoda is one of a number of fintech innovation partnerships FINCA Impact Finance has established to better serve its clients with responsible financial products and services.
SafeBoda was launched in 2015 to address the issue of road safety along with an increased opportunity for income generation and employment for low-skilled and mostly young workers. SafeBoda offers app-based motorcycle transportation services in and around Kampala, Uganda’s capital city. Each of SafeBoda’s 5,000 riders has received training on road safety and first aid and is equipped with two helmets – one for the driver and another for the passenger. The app connects riders with clients, increasing efficiency and lead to larger and more consistent driver revenues.
About FINCA Uganda
Launched in 1992, FINCA Uganda is part of FINCA Impact Finance’s global network of 20 banks and microfinance institutions that profitably and responsibly provides impactful financial services to enable low-income individuals and communities to invest in their futures. For more information, visit FINCAImpact.com and FINCA.ug and follow on Twitter @FINCAImpact.