Commercial Banks through their umbrella body, the Uganda Bankers Association are set to roll out Agent Banking through a shared platform supported by agents spread across the country.
In a statement issued by the Chairman UBA during the signing ceremony, Mr. Fabian Kasi said the approach was meant to drive financial inclusion by increasing financial and banking services outreach to the underserved/under/unbanked population. The approach we are taking will further reduce access barriers to financial services as well as deepen and broaden the range of financial services like formal savings, credit products and many others including financial literacy and advisory services.
Through Agent Banking, banks will extend their services to remote areas to increase access, address cash/float challenges and provide a range of products and services to bring the informal sector outside the financial system into the formal financial system where monetary policy and targeted interventions can be directed.
Uganda Bankers Association technology partner on this initiative, Eclectics International Ltd are a Pan-African Private Company serving over 205 banks across 23 countries in Africa today and focusing on provision of affordable state of the art IT solutions for the financial sector in Africa.
Under a joint venture partnership with UBA, Eclectics International will design, develop, deploy and operate the inter-operable shared platform that connects all member banks to the agent network spread across the Country.
Mr. Paul Mbugua, the Group Managing Director Eclectics International thanked UBA for approaching agent banking through a shared platform and granting them the opportunity to implement the project in Uganda.
The platform will enable all agents provide agent banking services to existing customers of all/any of the member banks as well as target/bring on board the unbanked, unserved and underserved segments of the population for financial services. Under the arrangement, banks will continue to drive the recruitment of customers and marketing of their other products and services.
The benefits that accrue from collaboration include increased points of presence at a reduced cost of expansion with opportunity to upgrade technology at minimal cost. This is a sustainable step for our member banks to reduce their costs of operations and these benefits will be passed on to our customers and the wider population by way of access to more cost effective channels, introduction of new mass market products, and secure lending opportunity for banks to extend loans to agents among others Mr. Wilbrod Owor, the Executive Director of Uganda Bankers Association said.
UBA remains committed to promoting financial inclusion by making formal financial and banking services available, accessible and affordable and is working with several stakeholders including Bank of Uganda, MNOs, FSDU, UNCDF, aBi Trust and C-Gap among others to achieve this.
Uganda Bankers Association
29th March 2017