By Mark Kawalya
ZoFi Cash, a local fintech, has launched a digital financial application that employees can use to apply for salary advances that allow them to solve financial emergencies that happen before payday. After their employer has approved the request, workers using the application can access up to 50% of their monthly earnings. The cash can be withdrawn from the ZoFi application, which is both IOS and Android compatible, directly into the user’s mobile wallet.
Paul Kirungi, the founder and CEO of ZoFi Cash says, “All around the world, the key driving factor behind personal development and growth is financial inclusion. However, the question that we have ignored for decades is what kind of financial inclusion we need.” “The type of inclusive finance we are focusing on at ZoFi Cash is income/earned wages. If someone doesn’t qualify for a loan facility in the bank, they should at least have early access to wages they have made. Our only goal is to make every day a payday.” he added.
The service is geared towards simplifying the salary advance procedure that employees go through when applying for salary advances. Paul adds that often people are faced with financial challenges that need to be sorted immediately and accessing financial solutions historically came with high-interest rates, bureaucracy and cumbersome collateral demands that result in longer turnaround times.
According to Kirungi, they hope the service bridges the gap between payday and the needs that come about before monthly salary has been paid. Users of the ZoFi have one month to pay back the cash, and it attracts an interest rate of only 3%
At the startup’s launch held at the Golden Tulip hotel, the board Chairman of ZoFi Hannington Segirinya said that the firm will foster financial inclusion in the country. “At ZoFi we have a variety of products that we shall be unveiling shortly, and these include but are not limited to payroll management, unemployment benefits, and many more.” He added.
The founder of the innovation village CK Japheth said that ZoFi cash is a solution for many people because it works around traditionally advanced gaps and uses technology to simplify financial processes that have for many years been slow and tedious.
ZoFi was launched first in Uganda in October 2021 but the firm has plans to commence operations in Tanzania, Rwanda, Kenya and Ghana by December 1, 2021.