Kacha will start soon a business offering digital loans without requiring any security

In order to launch a workshop that would concentrate on digital alternative small loans and introduce collateral-free digital loan services, Kacha Digital Financial Services signed a contract with numerous banks last Saturday.

It signed the agreement along with Global Bank of Ethiopia and Nib International Bank. According to the agreement, the institutions will work with Kacha for the following five years.

“Virtual lending to people in addition to micro, small, and medium-sized businesses using credit score services; We agree with it has remarkable capacity to increase financial boom and monetary inclusion,” Kacha CEO Abraham Tilahun said during the signing ceremony.

According to him, the deal we struck with the two banks, which have a combined customer base of more than 3.5 million, will “expand economic inclusion and make savings services accessible to the formal economy; It will positively contribute to the measures taken via the National Bank to prevent inflation.” He said.

According to Abraham Tesfaye, vice president of Nb International Bank, “as a bank, we bring years of experience, regulatory frameworks, deep understanding, and a strong customer base to this partnership.”

We will prioritise and focus on providing new prospects for all Ethiopians and attending to our clients’ financial demands, he said. “By fusing our in-depth expertise in the sector with Kacha’s state-of-the-art digital financial services.” They also stated.

The meeting was attended by senior National Bank of Ethiopia employees as well as leaders from government, business, and microfinance institutions.

The National Bank of Ethiopia allegedly gave the first private company a permit to issue a range of payment papers, including mobile money transfer services, with licence number NPS/PII/002/2022.

In addition to conducting a trial utility for the use of mobile money switch and other economic offerings at various tiers and carrier options, like USSD short variety *677#, Android and iOS applications, it has successfully concluded the cooperation with numerous banks and mobile money transfer service providers. It was permitted to launch its business by the Ethiopian National Bank as well.

Abraham Tesfaye, vice president of one of the biggest private banks in Ethiopia, attended the signing ceremony on behalf of the institution. “As a bank, we bring to this relationship years of extensive knowledge, regulatory frameworks, profound understanding, and a sizable clientele,” he concluded.

The collaborative working agreement that was held today, according to Mr. Sahlemikael Mekonen, the bank’s vice president, who was present on behalf of the Global Bank of Ethiopia, is based primarily on the five-year strategy sketch that our bank has mounted and carried out in a special way. We can assure the bank’s long-term success by fostering growth. He said .

Similar agreements have recently been made with other banks and microfinance organisations, along with the two banks, and it is reported that Kacha Digital Financial Services Inc. would carry them out personally.