GetBucks promises responsible lending

New entrant in the micro lending business, GetBucks Botswana has pledged a different model of lending that involves provision of responsible and sustainable loans.

During the relaunch of the company in Gaborone last week, GetBucks managing director, Marthin de Kok said they would apply strict and sensible criteria to ensure that they only lend affordable amounts to their customers.

Microlenders have been criticised for impoverishing and entrapping people in debts instead of alleviating financial strain.

 “We will have a customer profile which shows their affordability of the loan and their bank accounts so that we don’t run the risk of lending someone who already has debts,” he said.

He also noted that they actively encourage their customers to talk to them if they are having difficulties with managing their debt, adding that the secret to managing debt is to differentiate between good debt and bad debt.

“When you borrow money to splash on parties or anything that has no value, that’s bad debt. But good debt is investment debt that creates value, for example, building a house, student loans and business loans,” said de Kok.

GetBucks is a financial technology company that provides financial services by making use of the latest technology. The managing director said through their current and newly established relationships with the Botswana Teachers Union (BTU), Botswana Government Workers Union (BOGOWU) and CashCorp, the company provides financial services through credit and insurance products to clients who in the past did not have easy access to these types of products.

He said since 2012, Getbucks has been providing term credit products, funeral and legal protection products to BTU member. Last year GetBucks bought CashCorp, a well-established short-term credit provider that has been in the country since 1998. “This relationship enables GetBucks to provide short term credit to the general employed public of Botswana,” said de Kok.

He also added that the relationship that was established late in 2014 with BOGOWU allows GetBucks to provide financial services like long-term credit, short-term credit and a variety of insurance products to all government employees in Botswana.

“Our ultimate goal is to become a household name in the financial industry in Botswana by making use of technology in servicing our clients in a fast, easy and convenient way,” he said.

Deputy Permanent Secretary in the Office of the President, Mogomotsi Kaboeamodimo said it is pleasing to learn that GetBucks products come with financial education in order to empower the customers in decision-making.

“The International Monetary Fund (IMF) has cautioned our market players about the need to address household debt and promote debt for investment and saving. A customer that has saved will find your loans empowering because it would be an addition to their existing effort,” he noted.

Kaboeamodimo also stated that the financial technology system, which enables customers to transact online to get short term loans, is a game-changer, adding that the company’s relationship launch with BOGOWU comes at a time when there is a liquidity crunch in the market.

Editor's Comment
What about employees in private sector?

How can this be achieved when there already is little care about the working conditions of those within the private sector employ?For a long time, private sector employees have been neglected by their employers, not because they cannot do better to care for them, but because they take advantage of government's laxity when it comes to protecting and advocating for public sector employees, giving the cue to employers within the private sector...

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