By Neo Kolane
Local commercial bank, Nedbank Lesotho unveiled a new zero-interest monthly product Nedbank Mobi-Money this week in Maseru to assist Basotho who do not want to open bank accounts.
This product is targeted for low entry markets and it operates within defined limits by the regulator Central Bank of Lesotho.
Speaking at the launch, the digital manager of Nedbank Lesotho, Lucas Ntakha, said the bank realised that people do not want to open bank accounts “because they do not want an account that attracts fees at the end of the month.”
Ntakha said for one to have access to the product, one does not have to go into the branch but rather to dial *120*141# then follow the procedures.
He further explained that Nedbank Lesotho has validated with the ministry of home affairs to ensure that the National ID is correct being one of the requirements.
He added that Nedbank Lesotho services include having access to ATM to withdraw money, both partially and fully where a person is allowed to transact a maximum of M20 000 per month.
“Nedbank Lesotho is the only bank which gives to the Basotho nation the first free withdrawal every month.
“The service also does other prepaid value added services which include purchasing of electricity and airtime,” he said.
Ntakha disclosed that the product is switchable for financial inclusion as one does not need a smartphone . Customers also need a feature phone and a national ID.
He added that the product is open for the Basotho nation and it requires the ID and the cell phone number because any Mosotho anywhere can open a Nedbank Mobi-Money wallet regardless of whichever bank they hold an account.
“Currently, there is a stigma attached to banks that banks are for the elite, so to break that barrier, we are bringing services to people without the need to feel small.
“People can access the funds at the comfort of their homes without being intimidated in the bank,” he said.
He further said Nedbank Lesotho is currently encouraging all Basotho to register their SIM cards, which means one person will be linked to one SIM card.
In addition, he said one cannot have different wallets even if one has two different cell phone numbers because Nedbank Lesotho serves a person based on the basis of a single national ID.
The governor of Central Bank of Lesotho Maluke Letete congratulated Nedbank Lesotho for this kind of innovation.
Letete said regulations must not stop innovation, adding that if the banks cannot bring solutions to the customers in Lesotho “we are wasting time.”
“We have brought a solution to a contractor who carries money in their briefcase, because they will not have to go to the bank to withdraw money to pay the employees,” he said.