Etisalat micro-lending platform, KwikCash takes off even on controversial note

In a move that actualizes a project that started almost one year ago, Etisalat Nigeria, in partnership with Support Microfinance Bank, has made access to loans easier through the launch of its new micro-loan service product KwikCash.

The service, which is currently available only on the Etisalat network, is meant for subscribers who have accounts in some select banks in Nigeria and need to access to small loans to settle urgent financial needs. “It enables customers to get instant loans with ease using their mobile phones,” Etisalat said in a statement recently.

Presently the solution is accessed using a USSD code *561# on the Etisalat network, and only functions for those operating bank accounts in Access, GTBank, and UBA. Loan tenure are for 14days with interest while range is between N500 to N50,000.

The solution has been in the works since November 2016 and has been mired in controversy after an IT service provider, V-Exchange Limited laid claims to ownership of the said product. Demanding N2 billion from Etisalat as compensation for allegedly infringing on its product’s copyright, the company had called a press briefing where the company’s co-founder, Samuel Ajiboyede claimed that he had met with representatives of Etisalat regarding his company’s product and for the purposes of partnering with the same for mutual commercial benefits.

Ajiboyede further alleged that at the meeting, the loan service product was showcased to Etisalat officials who upon being impressed by the demonstration asked to be furnished with more details. He also said he was advised by Etisalat officials to obtain the Nigeria Communications Commission, NCC Short Code being the only thing remaining for a deal to be sealed between the two entities.

He claimed that he subsequently requested for a Memorandum of Understanding from Etisalat to enable his company acquire a Value Added Service (VAS) license to get the Short Code approval from NCC but that the request was never accented to. The company co-founder said he was however shocked when it heard that Etisalat had gone ahead to launch the instant loan service without its approval.

Though Etisalat had repeatedly denied the allegation, the uncertainties surrounding the allegations stalled the launch of the product this now. In one of their defenses, Etisalat via a letter dated February 21, 2017 acknowledged having had discussions with V-Exchange over its product but denied infringement of any patent belonging to the firm.

The letter signed by Vincent Eromosele, Etisalat Head, Legal Operations and Litigation and Chimeka Garricks, Manager, Legal Services claimed that ‘KwikCash’ is owned and operated by a financial institution and that Etisalat followed due process in acquiring the right to use the product on its network. The letter further claimed that KwikCash service was already in existence and operational prior to its meeting with V-Exchange.

In reality, KwikCash is indeed an existing solution that operates in various countries using same name. As a VAS (value added service) infrastructure, it’s actually built for use by Telcos and financial institutions to access customers and offer instant soft loans. In the case of Etisalat, Support Microfinance Bank is said to have obtained the franchise for the solution and engaged Etisalat as preferred channel to r  each the mass market.

Support Microfinance Bank is an Abuja based micro finance owned by Ekaette Umoh. For an institution that had previously run foul of CBN rules in the past, the bank hopes to use the KwikCash product via Etisalat, to regain credibility to customers.