Cinnamon Clubs goes in a partnership agreement with UAP Old Mutual
Cinnamon Clubs, a Ugandan Information Technology solutions provider offering premier Investment Club Management software has signed a partnership agreement with UAP Old Mutual. The software that automates bookkeeping and investment efficiencies will provide comprehensive loan insurance cover and financial services to investment clubs, savings groups and SACCOS.
An investment club is a group of people that pool their resources on a monthly basis as a long term investment. Majority of these clubs are informal in nature and find it hard to access services like group insurance and investments.
We therefore saw a need to bridge that gap between the formal corporate insurers, fund managers and investment clubs, which makes the partnership with Old Mutual rather significant and beneficial to investment and savings groups.
In an exclusive interview, Dickson Mushabe, CEO and co-founder of Cinnamon Clubs said: “We are excited about this partnership that will solve a big problem for these investment and saving clubs. Investment Clubs are formed on the basis of trust, unfortunately some of these clubs have crumbled, while others have made loses as a result of broken trust. This breakdown in trust is a result of some members failing to repay their loans in addition to inconsistencies in the monthly contributions”
There are many circumstances under which one may fail to repay their loans e.g. the accidental death of members, critical illness that may lead to inability to engage in income generating activities, retrenchment or involuntary loss of employment and the risk associated with the non-renewal of contracts.
With the introduction of the Cinnamon Insure product underwritten by UAP Old Mutual, clubs will no longer run the risk of losing their money which will be insured providing guaranteed reimbursement in the case of failure to pay. From an investment perspective the partnership will enable investment clubs to make more money through managed investment by UAP Old Mutual Unit Trust.
“This is a good partnership that will definitely offer many investment options to Investment Clubs. It will bring an alternative source of income to the groups whose money is sometimes lying around doing nothing”: said Daniel Opiyo, Head of Agency, UAP Financial Services.
About UAP Old Mutual Insurance Uganda Ltd
UAP Old Mutual Group is a subsidiary of Old Mutual Limited (OML) based in South Africa and operates in 13 markets across the region including Uganda.
We are an integrated financial services provider in East Africa, leveraging off the strength of our capabilities in local expertise and the global group. We’re glad to partner with individuals and corporates to provide financial solutions including, General Insurance, Life Insurance, Asset Management, Investment and Banking.
Contact us: 0800132700 0707700903 UAPOldMutualUg www.uapoldmutual.com ug.uap-group.com