Absa seeks to tap into booming microloan market
The service, called Digi Loan, allows eligible customers to borrow between sh20,000 and sh2 million instantly via the bank's mobile banking platform and Internet banking.
Absa CFO, Michael Ssegwaya shares details about the new financial product. (Photos by Ali Twaha)
By Ali Twaha
Journalists @New Vision
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Absa Bank has launched a new digital microloan product designed to capture the growing demand for fast and paperless credit.
The service, called Digi Loan, allows eligible customers to borrow between sh20,000 and sh2 million instantly via the bank's mobile banking platform and Internet banking.
“This launch reflects our continued commitment to enhancing efficiency and empowering our customers by making banking truly accessible and on-demand,” said Michael Segwaya, te CFO at Absa told journalists during the press launch in Kampala.
Uganda has seen a surge in mobile financial services, with over 45.6 million registered mobile money accounts and more than 30.4 million active users as of September 2024, according to the Uganda Communications Commission.
The Absa team behind the new products.
In 2023, Ugandans received more than sh9.5 trillion in mobile money loans supported by market demand for instant credit, mostly driven by mobile network operators.
Rachel Rwakatungu, the Credit Director at Absa Bank Uganda, said the service was not just about convenience but about “extending real financial empowerment” through safe and responsible lending.
Absa said its digital push also includes an online account opening platform that lets individuals sign up remotely using a national ID and smartphone or computer.
The twin innovations aim to attract Uganda’s tech-savvy youth, who make up more than 75% of the population, according to the 2024 mid-year projection by the Uganda Bureau of Statistics.