Agent
Banking has grown to about 9,477 agents spread across the country since
it was launched slightly about a year and a half ago, according to Bank
of Uganda deputy governor Louis Kasekende.
Speaking
during the World Saving Day celebrations in Kampala yesterday, Dr
Kasekende said, under the National Financial Inclusion Strategy
(2017-2022), which seeks to have all Ugandans access and use a broad
range of quality and affordable financial services, the banking industry
has seen some innovations such agent banking which have registered
tremendous growth over the period.
“The implementation of the strategy has thus far led to:
“The implementation of the strategy has thus far led to:
the rollout of Agent Banking [which currently has] 9,477 agents spread
across the country as at end September 2019,” he said, noting that the
system seeks to provide access and convenience to savers.
Agent Banking was launched in April 2018 with the view of easing access to financial services and enhancing financial inclusion.
Agent Banking was launched in April 2018 with the view of easing access to financial services and enhancing financial inclusion.
Such innovations, he said, among others, such as operationalisation of
Uganda Microfinance Regulatory Authority and the anticipated integration
of financial literacy as a subject in the secondary curriculum
effective 2020, will be key in enhancing and building a better savings
sector for Ugandans and the banking industry.
Financial
literacy, Dr Kasekende said, will help consumers of financial services
to make informed decisions that will foster low-level community economic
development as well as fighting poverty.
Whereas, there has been growth in the scope and number of financial service providers, penetration of financial services, especially in rural areas, continues to be low.
Whereas, there has been growth in the scope and number of financial service providers, penetration of financial services, especially in rural areas, continues to be low.
Thus, Dr Kasekende said, financial services
providers must increase access to affordable and convenient products
that can benefit the bulk of the population, especially the unserved and
underserved segments.
He also said that the Central Bank has managed to hedge bank customers against losses by encouraging a deliberate plan to grow the Deposit Protection Fund, which by September, had grown from Shs3m per customer to Shs10m.
He also said that the Central Bank has managed to hedge bank customers against losses by encouraging a deliberate plan to grow the Deposit Protection Fund, which by September, had grown from Shs3m per customer to Shs10m.
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