Vodacom Financial and Digital Lifestyle Services has launched VodaLend Personal Loans, to provide South Africans with a credit solution.
In a statement, the telco says the new offering, in partnership with Old Mutual Finance, gives customers and non-customers access to a personal loan of up to R250 000.
Vodacom is pushing its fintech business in a bid to diversify revenue streams.
In its trading report for the year ended 31 December, Vodacom Group delivered solid financial results, boosted by its financial services business.
During the period, the group’s financial services revenue increased 29.2% (14.3%) to R9.9 billion. Financial services customers increased 100%, to 70.6 million, transacting $1 billion per day.
This, as the company continues to scale its suite of financial services – comprising VodaPay, VodaLend, VodaSure and VodaTrade, among others – for consumers and merchants across the continent.
As local telcos ramp up their fintech segments, Vodacom’s rival MTN recently collaborated with local credit provider Lndr, to provide a new personal loan offering on its MoMo financial services platform.
MoMo Personal Loans offers loans ranging from R2 000 to R180 000, with R1 000 of the approved funds being disbursed into the customer’s MoMo wallet.
Last year, Telkom launched a lending facility, targeting businesses with loans of up to R5 million.
“We understand that the high cost of living and other economic pressures are taking their toll on consumers,” says Mariam Cassim, CEO of Vodacom Financial and Digital Lifestyle Services.
“Through VodaLend Personal Loans, we are offering an accessible, trusted and reliable financial solution backed by a reputable partner, which can support customers in achieving their personal goals and financial well-being.”
According to Vodacom, the National Credit Regulator’s Consumer Credit Report for Q1 2023 highlights that loan advances from non-banking institutions have increased to 9.3% from 8% at the end of last year, reflecting the shift by consumers to non-traditional financial service providers for their finance needs.
With VodaLend Personal Loans, it says, customers can apply for a loan online and will be notified of provisional approval within minutes of submitting all the required documentation.
Approved customers will receive their funds directly into their bank account within 24 hours of concluding their loan agreements, it adds.
“This integrated partnership with Vodacom will ensure consumers’ interaction with both brands is simple, convenient and tailored to their specific financial needs,” says Andre Keller, CEO of Old Mutual Finance.
“At Old Mutual, we offer our customers a variety of origination channels and platforms for personal loans; therefore, partnering with Vodacom allows us to further expand both our footprint and digital reach. Ultimately, we make borrowing accessible and easy to understand, while ensuring we remain a responsible lender by providing consumers with the right financial education tools to help them achieve financial freedom.”
“Our partnership with Old Mutual is another exciting step in expanding our financial ecosystem and building on our other digital offerings. By providing more customers with access to financial services, we are fostering financial inclusivity on a broader scale, which has the potential to accelerate economic growth and transform lives,” concludes Cassim.