By Africa.com | Created at 2024-11-14 12:01:35 | Updated at 2024-11-22 04:37:49
1 week ago
- Starting in Zambia, launch of DigMo sets the stage for transformative financial inclusion and wealth creation in Africa
- Designed for low and middle-income earners, Digmo offers secure, simple, and fun financial planning
- James Chona appointed as Chairman and Advisor, to head up market launch and drive impact in Zambia ahead of continent-wide expansion
DigMo, a new financial service company that brings gamified wealth-building tools to low and middle-income earners in Zambia has been launched. Licensed by the Bank of Zambia to operate a wallet, the fintech created for underserved users provides access to engaging products with great incentives. As part of the move to expand DigMo’s capabilities and reach, James Chona has been appointed Chairman and will advise on efforts to grow DigMo in Zambia.
Financial planning services in Africa are traditionally designed for wealthy and upper-middle-class customers. This can be seen in the pricing, messaging, and incentives. They are geared towards people who can afford to lock funds away for the long term and are happy with slow steady returns. This overlooks a large and growing segment of low and middle-income earners. In recent years, these customers have been better served by formal financial services, with improved access and innovative products for digital lending and payment services. But product innovation and inclusive access to financial planning services, like savings, investments, hedging, and more, still have a long way to go.
DigMo directly addresses this gap, offering a secure, free digital money account with a special account for users to play a “financial planning game”. It is simple and incentivises customers to get started putting money away for the future. DigMo is hoping that by giving customers the chance to win big rewards, they will gain sustainable habits. At the moment, informal planning – the acquiring of non-financial assets like livestock and highly liquid products – is a big part of many Africans’ lives. To attract the mass market to plan using more formal and efficient methods, there needs to be an extra push and more innovation in this field.
With an initial rollout in Zambia, DigMo wallet’s first offering, Save to Win, makes putting money away regularly, easy and rewarding with no fixed costs or fees. Savings is highly correlated with investment and investment with economic growth. Innovating this area of financial services for the mass market can promote broader economic empowerment and entrepreneurship. Ultimately, users will build financial resilience, helping them reach their financial goals, withstand economic downturns, or even start a business. Save to Win allows users to start with small amounts – from just 10 ZMW (approximately USD 0.37) – for the chance to win prizes of up to 500,000 ZMW (approximately USD 18,400), with prize pools growing over time as more customers participate. By focusing on technologies enabling cost-efficient and secure account opening through partnering with an Africa-focused compliance tech provider like pawaPass, DigMo keeps users secure, lowers its risks and reduces the costs to deliver fitting products for this group while positioning for scale.
Speaking on the launch of DigMo, Sylvia Brune, CEO of DigMo Group, said: “We are committed to financial planning innovation for low and middle-income earners across Africa. To achieve this meaningful impact, we approach this like a game studio – where we constantly create and test many new products until we find those with an outsized impact. If we just take existing products and make them more affordable or accessible, it is unlikely that we can dramatically change behaviours. To succeed, we have engaged directly with users, observing and learning from them to develop DigMo, a solution that will dramatically improve their financial well-being and meet their unique needs.”
Having worked across telecoms, fintech, and technology for over 25 years, James Chona joins DigMo from Zamtel, where he served as Chief Commercial Officer. His career prior to Zamtel includes roles as CEO of Opay and Director at Airtel Money in Zambia. As Chairman, James will be working closely with the DigMo team, and advising on DigMo in Zambia, expanding partnerships, and scaling operations to bridge the financial inclusion gap through easily accessible digital products that directly target the underserved to participate in the broader formal economy.
Commenting on his new role as Chairman, James Chona said, “Joining DigMo comes at a crucial moment for advancing financial inclusion in Zambia. Africa’s low and middle-income earners face many challenges, from inflation and high payment fees to restrictive financial products with lock-in periods and complex terms that often deter long-term savings. DigMo is rethinking financial planning by disrupting traditional financial planning methods and focusing on African consumers’ real motivations and behaviours. It is a great honour for me to join and advance DigMo’s mission as we bring accessible and innovative financial products to those who need them most in Zambia and across the continent.”
DigMo is positioned for broader expansion across Africa, creating financial pathways for those previously excluded from the formal economy. The launch of DigMo aligns closely with the government of Zambia’s recent target to accelerate financial inclusion to 85%, as outlined in the National Financial Inclusion Strategy II (2024 – 2028). To support this mission, the team is working closely with regulators and partners to ensure DigMo meets high security and compliance standards. This effort is further strengthened by pawaPass’ advanced KYC and security measures, including facial biometrics and low-touch data points, which boost data security and fraud detection and significantly improve user protection measures in the Zambian market.
Save to Win builds on a proven concept first introduced in England in 1956, now known as Premium Bonds. Originally championed by then-Chancellor of the Exchequer, who later became Prime Minister, Harold Macmillan, the model encouraged saving by appealing to those drawn to the excitement of potential rewards over traditional interest. Brune concludes: “When Mr. Macmillan introduced the prize account, it initially faced opposition from his peers but successfully encouraged millions to develop healthy financial planning habits. We are bringing this innovative approach to Africa with Save to Win, and our next products, inspiring a new generation to build financial resilience and achieve their dreams.”
