More Banks For Uganda’s Rural Development On The Way
In an effort to bring banking services closer to rural areas in Uganda currently underserved or lacking the services of formal financial institutions, the Ugandan Government passed the bill on Agency Banking allowing banks to use shops, kiosks, and field agents to act on a bank’s behalf to receive deposits, open accounts, and effect withdrawals.
Vice- President Edward Ssekandi
The enactment of Agency Banking has seen the approval of 17,000 bank agents in different parts of Uganda processing a whopping 45 million transactions with more than USD2.76 billion in estimated value in May 2013 alone.
Vice President Edward Ssekandi elucidated, “Extending financial services to the rural areas and the poor will have a positive impact on household incomes.” In one event for Centenary Bank’s customers at Mapeera House in Kampala, the Vice-President elaborated, “I believe that to create impact and promote economic development, there is need for both short-term and medium-term financing for the agricultural sector.”
Centenary Bank’s Chief Manager for e-banking, Edith Kababure enthusiastically announced that their bank is looking forward to enlist another 10,000 agents across Uganda by the end of 2014 when Agency Banking policies are fully enabled.