One of the key challenges faced by credit-offering institutions is payments’ collection. Many customers fail to pay promptly because they don’t have the funds while others may have the funds but are simply unwilling to comply. This is further worsened by the hard economic times currently witnessed globally.
However, innovators are using technology to address some of these issues. One of the tools being used in Tanzania to support payments’ collections is eMakato; a platform that allows service providers and financial institutions to automate their payment collection processes; interfacing with their customers to promote a unified procedure and digitally enhance customer experience.
This platform helps service providers to digitize the entire process of payment collections; from creating mandates, alerts, monitors and thus collecting payments seamlessly. It further reduces the cost of collection, minimizes errors, and improves security and accuracy by eliminating manual collection processes.
Nicholaus Ngolongolo, the Co-Founder and CTO of Solo Codes Africa, noted that the broken trust among creditors and borrowers inspired them to develop eMakato.
“The collection methods that existed before were ineffective, so we developed eMakato. To sign up on our platform, for every company, because we serve the company not individuals, they visit our website and contact us. Once the company contacts us, we share the minimum requirements required to complete the sign-up process. The minimum requirement we need from companies to subscribe to our platform is a proper KYC – company name and all registration documents,” Ngolongolo said.
He added: “After submitting this information, we create your account and your staff can now access our services. The company staff now have a mandate to set a debit instruction for each customer. Through our platform, once the creditor inputs the borrower’s information, a debit instruction is set which cannot be removed by the borrower.”
Several financial institutions are already using eMakato in Tanzania. These include CRDB Bank, NMB Bank, TIGO and others.
Ngolongolo noted that the main challenges they are facing include prolonged discussions and delayed sign-up closure, shortage of funds for massive product roll-out and low technology adoption.
We interacted with eMakato on Day 28 of the 40 Days 40 FinTechs initiative for Tanzania. First implemented in Uganda, 40 Days 40 FinTechs is an annual FinTech Innovation initiative presented by HiPipo to recognize and celebrate individuals and organizations who are making significant strides in promoting financial inclusivity through the use of technology.
It is aimed at promoting innovation and collaboration among FinTechs in Africa. The initiative is designed to provide FinTechs and startups with mentorship, training, exposure, and networking opportunities to help them grow and scale their businesses.
“We are excited to be part of this year’s 40 Days 40 FinTechs initiative. This project is doing a great job for start-ups. We want to expand nationwide and also grow to different markets. We are sure that 40 Days 40 FinTechs will support this by creating more awareness about our solution across Africa,” Ngolongolo noted.
40 Days 40 FinTechs initiative Tanzania is part of HiPipo’s broader Include EveryOne Program that is generously supported by the Gates Foundation and implemented in partnership with Level One Project, ICTC Tanzania, Ideation Corner, Cyber PLC Academy, INFITX, Crosslake Technologies, NG Films, Founders Academy and Mojaloop Foundation.
The Include EveryOne program is a beacon of acceleration of FinTech Innovation, empowerment for Women in FinTech and a catalyst for investment and development in the ICT sector. Minus 40 Days 40 FinTechs, other initiatives under the Include EveryOne Program are the FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit and Incubator, Digital Impact Awards Africa and the Digital and Financial Inclusion Summit.
HiPipo is recognized as a premier advocate of digital Innovation and financial inclusion champion, a fervent proponent of the #LevelOneProject. HiPipo has been at the forefront, actively promoting digital innovation, Instant, Inclusive Payment Systems (IIPS), and DFS across Africa. With a legacy of advising, mobilizing, and facilitating the adoption of inclusive financial services, HiPipo’s efforts have been nothing short of transformative! For almost two decades, HiPipo has successfully facilitated the inclusive adoption of these crucial services.
