by MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) – WITH 26 million South African consumers having a formal credit record, there is still a significant part of the population that lack access to formal financial services.
It is hoped with Vodacom’s launch of VodaLend Cash Advance, this could be a thing of the past.
VodaLend Cash Advance is the latest product to be added to the VodaLend financial services suite, which includes VodaLend Compare, Voucher Advance, and Airtime Advance.
Available exclusively to Vodacom customers through the VodaPay app, the financial services offering forms part of the telco’s purpose-led ambition which includes accelerating financial inclusion for all South Africans.
“VodaLend Cash Advance provides affordable access to lending products for those who need these services most, but who have historically been prevented from doing so due to high fees and difficult-to-navigate paperwork,” said Mariam Cassim, Chief Executive Officer of Vodacom Financial Services.
Vodacom customers can access a cash advance from R50 and up to R500, with the option to settle it over seven, 14, 21 or 28 days.
In addition to the regulated requirements for affordability checks, the credit decision process is enhanced by also looking at a Vodacom customer’s recharge and payment behaviour.
Once approved, the money is advanced directly into the user’s VodaPay Wallet.
“This innovative product is a potential game-changer, as its fees are less than traditional short-term cash advance providers,” Cassim said.
The executive said on average, it is up to 400 percent cheaper than using a mashonisa.
“It moves us beyond financial inclusion to real financial impact,” added Cassim.
Mashonisas are informal, mostly illegal, lenders.
Meanwhile, since launch in October last year, Vodapay has attracted 2,8 million downloads.
– CAJ News