Mukuru has entered into a strategic partnership with JUMO to roll out Fast Loan, a mobile-first credit solution aimed at addressing the gaps in South Africa’s financial landscape.
Through the launch of Fast Loan, Mukuru and JUMO seek to mitigate the issues arising from South Africans not having access to the formal credit system, due to earning irregular incomes, lacking traditional credit histories, and being excluded from mainstream financial services. The two fintech companies aim to facilitate transparent and responsible access to short-term credit by merging Mukuru’s customer relationships and network with JUMO’s AI-enabled credit infrastructure.
Scaling financial inclusion for South Africans
As part of this collaboration, JUMO’s Banking-as-a-Service (BaaS) infrastructure is set to support Fast Loan, with the company’s plug-and-play system being behind a new generation of data-oriented financial products. Among its solutions, JUMO mentions small and medium-sized enterprise (SME) and retail banking software infrastructure offered to banks.
To utilise the new solution, Mukuru customers can apply through WhatsApp, receiving instant disbursements to their Mukuru Card. Funds can be utilised immediately across all digital channels, including POS, online ecommerce with the card, or on any of the services provided by Mukuru. Additionally, customers can withdraw the funds as cash at any ATM or at Mukuru’s retail partner points, including Spar, Pick ‘n Pay, Boxer, and Shoprite.
Furthermore, all loans received through Mukuru are set to be reported to credit bureaus, which in turn will support customers in building formal financial profiles. When it comes to loan pricing, users will have an 11.5% initiation fee, interest in arrears (5% for first loans and 3% thereafter), and capped penalties. For those repaying early, Mukuru does not charge interest fees, aiming to encourage responsible borrowing and offering a more cost-efficient lending option for customers without access to formal credit.
In addition to facilitating immediate access to credit, Fast Loan will deliver insights into customer borrowing behaviour, repayment patterns, and financial goals. With these insights, Mukuru and JUMO intend to further improve the product, including longer terms, higher loan amounts, and more flexible repayment options.
