Microfinance institution Mukuru announces that obtaining a Deposit-taking Microfinance license will result in cost reductions, which they claim will be passed on to their customers.

Mukuru, a leading financial services provider in Zimbabwe, has been awarded a Deposit-taking Micro-finance Institution (DTMFI) licence by the Reserve Bank of Zimbabwe. This development marks a significant milestone for the company as it enables Mukuru to operate as a regulated financial institution that can accept deposits [1].

With this licence, Mukuru can now offer a wide range of financial services under one roof or kiosk, such as savings, loans, and digital payments. The new licence allows Mukuru to tap into customer deposits as a funding source for loans, reducing reliance on higher-interest loans from other financial institutions. This move is expected to lead to lower interest rates for loans [2].

One of the key benefits of the DTMFI licence is the promotion of secure and inclusive practices. Mukuru's Digital Transfer Money Financial Institution (DTMFI) services promote secure and inclusive practices as money does not need to be physically collected [3]. This aspect is particularly beneficial for rural and small-scale businesses, as it reduces the risks and costs associated with cash handling and physical transport [4].

The licence also enables Mukuru to offer secure deposit services, allowing Small and Medium Enterprises (SMEs) and individuals to safely save money without relying on costly informal savings mechanisms. Additionally, Mukuru can provide low-cost digital financial products like mobile wallets, which reduce transaction fees, minimize travel costs to physical banks, and allow easier and quicker payments or transfers [1].

Mukuru's strategy aligns with the national financial inclusion strategy, aiming to increase digital inclusion in Zimbabwe. The company aims to empower SMEs, women, youth, people with disabilities, and rural populations through financial services. Mukuru's mission of financial inclusion now aligns with Zimbabwe's National Financial Inclusion Strategy [5].

The licence may lead to reduced operational costs for Mukuru due to streamlined operations. Mukuru can now accept and manage deposits directly, potentially reducing fees associated with third-party services. Customers, particularly in rural areas, can access services digitally with the new licence, potentially reducing logistical costs [6].

Mukuru's digital capabilities will enable it to deliver innovative digital solutions to address the specific needs of its customers. The company hopes to encourage the adoption of digital solutions, supporting economic growth for over three million loyal customers. Mukuru's reputation as a reliable financial services provider is expected to support the adoption of digital offerings [7].

Reduced travel costs are another potential benefit of the DTMFI service offerings. Traditional financial transactions often involve travel, which can be costly and time-consuming. By offering digital solutions, Mukuru aims to cut out these travel costs [8].

The licence may lead to cost savings for SMEs, women, youth, and rural communities. By providing affordable and secure financial services, Mukuru hopes to uplift communities by enabling secure and inclusive access to financial services [1].

In conclusion, the DTMFI licence awarded to Mukuru represents a significant step forward in financial inclusion in Zimbabwe. The licence allows Mukuru to offer innovative and regulated digital financial services that translate into tangible cost reductions for underserved groups, improving their ability to save, transact, and access credit efficiently [1].

[1] Mukuru Press Release, 2021. [2] Mukuru Press Release, 2021. [3] Mukuru Press Release, 2021. [4] Mukuru Press Release, 2021. [5] Mukuru Press Release, 2021. [6] Mukuru Press Release, 2021. [7] Mukuru Press Release, 2021. [8] Mukuru Press Release, 2021.

Microfinance institution Mukuru announces that obtaining a Deposit-taking Microfinance license will result in cost reductions, which they claim will be passed on to their customers.