MOGO, a Kenyan financial services firm has reaffirmed its commitment to responsible lending by implementing a range of customer-centric measures aimed at ensuring transparency, protecting customers from over-indebtedness, and empowering customers to make informed financial decisions. MOGO offers a range of loan products, including car loans, logbook loans, and boda boda loans. It is a member of the Kenya Bankers Association and is committed to upholding the association’s Code of Conduct for Responsible Banking. MOGO uses artificial intelligence technology to improve credit scoring models and ensure thorough evaluations are done before approving new loan applications.
Transparency
One key aspect of MOGO’s responsible lending strategy is to provide customers with clear and comprehensive information about loan terms upfront. This includes preliminary offers that outline the terms, installment payments, associated fees, and the long-term benefits of the loan.
Affordability
MOGO also goes beyond traditional lending practices by offering flexible repayment terms and longer repayment periods, and by advising customers to choose plans that align with their income.
Flexibility
In cases where unforeseen hardships arise during loan repayment, MOGO offers support through tools such as loan temporary payment adjustments. This approach helps customers facing income reductions due to job loss, rising cost of living and inflation, or business challenges.
Financial Literacy
In addition to its customer-centric measures, MOGO also launched a free financial literacy tool in February 2023 to enable customers to assess their financial creditworthiness independently. Customers can access the tool through MOGO’s website.
Customer Engagement
To further enhance responsible lending practices, MOGO engages customers through outreach events to sensitize them about financial literacy, and stays updated with industry regulations and best practices to ensure compliance.
MOGO is committed to responsible lending and fostering a transparent, customer-focused lending environment. The company’s vision is to assist customers in making sound borrowing decisions to protect them from financial commitments they cannot afford to meet.
“To achieve our mission of facilitating upward social mobility across Kenyan communities, MOGO remains dedicated to fostering a transparent, customer-focused lending environment, prioritizing the financial well-being of its customers,” said Mr Chris Murimi, MOGO’s Head of Underwriting.
Responsible lending is important because it helps to protect consumers from over-indebtedness and financial hardship. It also helps to promote financial stability and economic growth.
When consumers are able to borrow money responsibly, they can invest in their businesses, education, and homes. This can lead to increased economic activity and job creation.
However, if consumers are able to borrow money too easily or without understanding the terms of their loans, they may end up in debt that they cannot afford to repay. This can have a devastating impact on their personal finances and can lead to bankruptcy.
Responsible lending practices help to mitigate these risks by ensuring that consumers have the information and support they need to make informed borrowing decisions
