Kenya based fintech startup myNGOVO has recently launched a personal finance app that offers salary advances to employees and employee benefits without any interest charges.
The app in a way empowers the employers. Through myNGOVO platform, employees can request for upto 50% of their salaries in advance, after which the payment will be made to their mobile money account. But the employer ultimately decides what percentage of the salary an employee can access. The employer then pays the salary amount minus the salary advance payments facilitated by myNGOVO. No compounding interest is charged on the amount advanced. Though, it charges a transaction fee of 3.6% each time an advance payment is requested. There is no limit of number of salary withdrawals.
“Income timing does not always match cash flow needs of wage workers, leading to them taking costly debt for their consumption needs,” said Methuselah Marava, co-founder and chief executive officer (CEO) of myNGOVO . She believes that there is a huge need for such a platform.
“myNGOVO stemmed from me seeing how my sister struggled in paying exorbitant interest charges to loan sharks, because her employer didn’t have working capital to offer her a salary advance. On further research we realised it was a problem for many workers.” She said in a statement.
The startup is also working towards raising a seed round of funding. It began customer outreach in July 2020 and has been receiving a positive response. Currently, it has firms from the security, hospitality and retail industries on its waiting list as well.
“We believe we can capture a lot of value from the Kenyan market before expanding to comparable markets in Sub-Saharan Africa,” said CEO Maraya. myNGOVO has also started generating revenues with its initial launch this month.
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