Be honest, how many times have you counted the days left until salary week with bated breath? How many times have you had to temporarily borrow money from a friend or sibling because you already locked your savings and your salary doesn’t come for another two weeks? It’d be nice if emergencies could wait until we’re paid to occur. But bills don’t stop just because money is coming and every Kobo counts when you’re surviving on your end-of-month paycheck. Knowing you’re earning money every day you work but will only get it at the end of the month can be financially frustrating.
A Nigerian problem
In some countries, wages are paid bi-weekly but in Nigeria, most workers receive salaries in 30-day cycles. This 30-day cycle means a lot of salary earners live paycheck to paycheck. Some salary earners have resorted to taking out payday loans to cover emergencies and other needs against their salaries. These high-interest quick loans plunge people into more financial distress with their rates. By the time users are paid their salaries and pay off the loan and interest, they may need another loan to tide them over again before the next salary. These digital lenders also harass debtors when they have trouble paying back and cause problems between debtors and their families and sometimes employers. With rising inflation rates and a low minimum wage (N30,000), every kobo counts, especially for salary earners. For these reasons, Mkobo microfinance bank has made it possible for salary earners to get access to their earned wages at any time of any day.
The Mkobo solution
In a country brimming with fintech solutions, Mkobo Bank has made itself the leading digital bank for salary earners by offering access to up to 50% of accrued salary with 0% Interest. Mkobo’s mission is to improve the lives of economically active Africans and it is doing this by offering three products; EarlyPay for employees and employers, Mkolo for savings, and Mkobo banking services for payment and other banking needs.
The difference between payday loans and Mkobo is that Mkobo offers employees access to money already earned. It is a faster way of getting up to half of your salary before pay day with no additional interest eating into it. The only cost you pay is a fee for accessing the salary early, just like you would for any other bank transaction. With this service, employees get access to their salaries before pay day and a free salary account with no hidden or unnecessary charges like account maintenance fees, notification fees, or even card maintenance fees. Users can also save their hard-earned money in the Mkolo savings account and easily make payments through the Mkobo card. Users also get free transfers and can pay bills seamlessly.
With access to earned wages at no interest, salary earners can make their salary go further. Employees also become more productive because they have less financial stress. Having access to your salary early also means you can save while meeting your financial needs and any emergencies that arise. Most importantly, earned-wage access helps people maintain financial stability and avoid debt cycles.
The bank’s services are open to employees and employers also. To boost employee financial well being and in turn their productivity, Employers can reach out to Mkobo and onboard their employees. If your employees are happy and well-taken care of, they’re more likely to do their jobs well and remain employed. This saves companies money in the long run because they no longer have to hire and fire quickly and they get the best out of their existing workforce.
What else Mkobo is offering
Mkobo’s guiding principle is fairplay; you’ve worked for your money and you should be able to use it effectively. This is why the bank runs on no hidden and frivolous charges, and users get free monthly transfers and cashbacks on bill payments. The fintech also makes saving easier with up to 15% interest per annum.
Mkobo also offers asset financing to logistics/mobility companies and riders. With the Mkobo Lifeline Asset Finance, riders have a path to owning their own vehicle and ultimately becoming self employed. In the interest of fairplay these loans come with no collateral (the asset purchased with the loan is the collateral), flexible repayment terms, and transparent interest rates. In the past the bank has partnered with Glovo, Kwik, and other prestigious companies to offer this service.
If you’re interested in EarlyPay for your employees or asset financing, reach out to Mkobo here. If you’re a salary earner you can also download the Android or IOS app and start your journey to financial stability.