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Mukuru Financial Services, a leader in the remittance and financial services industry, is set to redefine its operational strategy by bolstering its proprietary network infrastructure.
Speaking exclusively to our sister publication, Business Weekly, Mukuru Financial Services chief executive officer Mr Doug Tait-Knight outlined the company’s ambitious plans to expand its footprint through self-owned depots rather than relying on third-party contracts.
“We have built a strong foundation with our existing network, but owning our depots allows us to provide a more seamless and reliable customer experience,” Mr Tait-Knight said.
“It is about controlling the end-to-end process, ensuring security and being able to offer services tailored to our customers’ needs without third-party constraints.”
Mukuru recently achieved a significant milestone, being awarded the Deposit Taking Microfinance Institution Licence in December. This marks a transformative step for the company.
“This licence is an incredibly exciting next step,” Mr Tait-Knight explained. “It logically follows on from the services we already provide. We are uniquely positioned with our customer base and technology to offer, rather than just cash remittances, a digital store of value.”
The digital wallet solution aims to address critical challenges faced by Mukuru’s customers, particularly those in rural areas.
“We save people time and money by eliminating the need to travel to collection points. It is also more secure, as customers will not have to walk around with large amounts of cash. Plus, the convenience of a 24/7 digital store of value is a game-changer,” he added.
From the wallet, users can access a range of value-added services, including paying for DSTV, purchasing airtime and settling electricity bills. These services are already live, with plans to expand further.
“This development aligns with our financial inclusion goals. Beyond just storing value, we are looking at credit as the next big step. The security, reliability and ease of use of our platform make it a unique and strong offering in the market,” Mr Tait-Knight noted.
Mukuru’s network currently serves a 60-40 urban-to-rural split. Expanding services to underserved rural areas is a priority, especially given the network challenges in these regions.
“Network is always a big challenge,” Mr Tait-Knight acknowledged. “Our first solution was to ensure accessibility through channels like WhatsApp and USSD. If customers do not have smartphones, they can still use USSD, which has proven reliable in rural areas.”
Looking ahead, Mukuru is exploring cutting-edge technologies like satellite internet to overcome connectivity barriers.
“Satellite internet can provide cost-effective solutions almost anywhere. As the population increasingly adopts digital and smartphone technology, we are poised to meet demand in even the most remote areas,” he said.
As Mukuru enters the deposit-taking sector, competition is inevitable. However, Mr Tait-Knight remains confident in the company’s approach.“We can sum up our strategy as ‘send, store, spend.’ We are already strong in remittances, which our customers rely on year-round. The next step is empowering them to store value securely and access it flexibly,” he explained.
Unlike traditional financial institutions, Mukuru’s model is designed to accommodate informal businesses and underserved populations.
“Rather than withdrawing the full value of a remittance, customers can take only what they need and leave the rest in their wallet.
‘‘They’ll have confidence that their balance is safe and accessible anytime,” Mr Tait-Knight said.
The company is also looking to address the credit gap in rural areas.
“Credit is especially hard to access in remote regions. Our platform is uniquely positioned to offer secure, affordable credit solutions. This aligns perfectly with our financial inclusion strategy,” he emphasised.
Mukuru’s vision is clear, to build a robust, proprietary network and expand its digital financial services to empower customers across urban and rural areas. With a focus on innovation, security, and inclusivity, the company is set to redefine financial services in Africa.
“Our goal is to ensure convenience, reliability, and security for all our customers, no matter where they are. This is the next big chapter for Mukuru, and we’re excited to lead the way,” Mr Tait-Knight added.
As Mukuru forges ahead, its commitment to financial inclusion and innovation promises to reshape the landscape of remittances and financial services across the continent. — www.businessweekly.co.zw
