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Microfinace Firm Awarded for Driving Mobile Money

August 22, 2014

Antony Langat

MUSONI, the local microfinance services firm, said it had been awarded the 2014 Kenyan Frost & Sullivan Award for Technology Leadership for enhancing the adoption of mobile money.

The award is based on Frost & Sullivan's recent analysis of the microfinance industry (MFI) in Kenya.

"Musoni is currently offering micro-credit, and hopes to expand its services to include micro-savings and micro-insurance products," said Craig Parker, Senior Economic Consultant at Frost & Sullivan, the consulting firm.

"The delivery of savings and insurance using the mobile money platform will increase customer uptake, which is currently less than three percent for micro-insurance products in Kenya. The mobilisation of micro-savings will raise customer profiles and help them qualify for micro-insurance."

Musoni is derived from "m-usoni" where "m" stands for Mobile and "usoni" is the Swahili word for Future, hence its "Mobile Future" payline.

It is said to be the first 100 percent mobile microfinance institution in the world.

By using a mobile platform as a channel to deliver its products and services to customers, Musoni has positioned itself to bring the benefits of microfinance to parts of the Kenyan population left behind by traditional microfinance institutions.

The company works closely with international partners such as the Grameen Foundation, KfW and USAID, which enables it to gauge the challenges that the industry is facing.

Musoni uses Safaricom's M-PESA platform to offer micro-loans and accept repayments through mobile phones.

More than 80 percent of the Kenyan population is registered with M-PESA, most of whom have no other access to financial services.

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Source: AllAfrica

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