Banks to leverage on agent banking to improve penetration

Stanbic Uganda cheif executive officer, Mr Patrick Mweherie (L) exchanging files with the IFC regional director for Eastern Africa, MsJumoke Jagun-Dokumu (R) after signing $1.9 million at Kampala Serena hotel on April 25, 2019 to support Agent Banking Company. Looking on are Mr Wilbrod Owor the executive director of UBA and Mr Dan Kasirye the IFC resident representative for Uganda and Tanzania. PHOTO BY MARTIN LUTHER OKETCH 

By MARTIN LUTHER OKETCH

Kampala. Uganda Bankers Association (UBA) and the International Finance Corporation (IFC) have signed $1.9m agreement that seeks to increase financial inclusion through agent banking.

The agreement, which was signed in Kampala will leverage on agent banking to deepen financial
inclusion, a key growth aspect in a relatively unbanked Uganda.
Uganda, according to data from Bank of Uganda has slightly above five million accounts, which indicates that a number of people are locked out of the banking sector.

However, the advent of agent banking has seen tremendous growth in terms of penetration with the banking sector recording at least 8,805 agents across the divide, according to UBA.
The $1.9m will be used to deepen penetration with a target to grow the current nine million accounts, which have been opened through agent banking, to 20 million by 2020.
Ms Jumoke Jagun-Dokunmu, the IFC regional director for eastern Africa, said low income earners in Uganda need a range of financial services such as agent banking to take advantage of available economic opportunities.

Agent banking, according to Mr Richard Yego, the chief executive officer of Agent Banking Company, has helped to connect banks and is driving financial inclusion by increasing banking outreach to the un-banked and under-served population.

moketch@ug.nationmedia.com