MTC mobile money to target the unbanked

Mobile Telecommunications Company (MTC) has launched a product that will allow people with no bank account to send and receive money.

The service is called Maris.

The product targets the bulk of the unbanked market.

During a launch hosted on Friday, MTC spokesperson Tim Ekandjo said Maris allows users to deposit, withdraw and transfer money, as well as pay for goods with a mobile device.

Ekandjo said Maris, which means ‘money’ in Khoekhoegowab, was designed by Windhoek General Administrator (WGA), a subsidiary of MTC.

According to Ekandjo, the service allows users to deposit money in an account stored on their cellphones, to send balances using PIN-secured SMS text messages to other users, including sellers of goods and services and to redeem deposits for regular money.

Finance and public enterprises minister Iipumbi Shiimi said the majority of the country’s banking sector mainly focuses on urban areas and the formal economy, excluding many people in rural and informal areas without access to financial services.

“This leaves a large portion of our population out of the mainstream economy,” said Shiimi.

He emphasised that there is significant money flowing within the informal economy.

“Many people underestimate the amount of money circulating in the informal economy.

The money flowing there is significant, and it deserves to be brought into the formal banking system. Gone are the days when people stored money under mattresses,” said Shiimi.

Shiimi added that a large number of people, particularly in remote areas, have no access to traditional banking services, therefore, investments should be made to provide such services.

“Mobile phones can bridge this gap by providing low-cost banking services such as payments, transfers, insurance, credit and savings. Mobile money is likely to be adopted quickly because of the convenience it offers,” said Shiimi

Speaking at the launch, WGA board chairperson Jerome Namaseb said financial inclusion will play a big role in the economic growth of a developing economy.

According to Namaseb, Namibia has been lagging behind in terms of structures that offer financial services to many sections of the population.

“Financial inclusion is crucial for developing economies like Namibia, as it enables greater access to financial services for marginalised populations, fostering economic growth and reducing poverty,” said Namaseb.

He added that there are many people that are still unbanked or underbanked, and initiatives aimed at improving financial literacy and expanding access to banking services can stimulate local economies and create job opportunities.

The last Namibian Financial Inclusion survey done by the Bank of Namibia indicated that close to 22% of Namibians are excluded from banking services, and approximately 65% of Namibians in rural parts of the country predominantly rely on cash to receive their income and payments.

According to Namaseb, this was the key reason behind introducing Maris.

“This initiative will serve to address the inclusion for the underserved, offering financial solutions that are not only accessible but tailored to the needs of low-income earners,” he added.