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FINANCIAL SERVICES SECTOR RECOGNIZE aBi’s SUPPORT TOWARDS AGENT BANKING IN ENHANCING FINANCIAL INCLUSION IN UGANDA

By August 16, 2021 No Comments

Background

The Uganda Bankers’ Association (UBA) launched the Shared Agent Banking System (SABS) in Uganda in 2018 so as to increase access to formal banking services and increase financial inclusion for the underserved sections of the population especially in the rural areas. Through the initiative, formal financial institutions namely the commercial banks can avoid costs of establishing and operations of bank branches. Customers are enabled to access most of the banking products and services with convenience. The model works by identifying qualifying business operators as agents based within communities to perform the banking services for the partner banks on a commission arrangement. The regulated Financial institutions are allowed to enroll and use the services; using a single agent to transact on behalf of the member banks. aBi committed to supporting this process as part of its mandate of enhancing access to financial services and financial inclusion in Uganda.

Ms. Mona Muguma Ssebuliba, the aBi Finance Chief Operating Officer, giving remarks at the launch of Shared Agency Banking System (SABS) in 2018. (File photo)

Reach and Impact by 2019

By 2019, a total of 13 financial institutions had been integrated and active on the Shared Agent banking system as opposed to only 7 in 2018. With an overall grant financing cost of UGX 3.6 bn, 8,422 new agent banking access points were activated, against an annual target of 4,800 new access points. This facilitated extension of financial services to the people, more so in rural areas, and contributed to job creation by way of various agents across the country (aBi Annual Report 2019, P. 36).

There was a notable increase in the number of transactions on the shared agent-banking platform from 50,556 in 2018 to 1,172,120 in 2019, 70% of which is in rural areas (Uganda Bankers’ Association)

There was a notable increase in the number of transactions on the shared agent-banking platform from 50,556 in 2018 to 1,172,120 in 2019, 70% of which is in rural areas (Uganda Bankers’ Association)

aBi’s contribution receives recognition

Financial Services sector players have recognized aBi’s contribution in Uganda’s Agent Banking journey. Initially, aBi earmarked funds towards the purchase of Point of Sale (POS) devices to facilitate transactions, technical assistance and capacity strengthening services.

Click here (Shared Agent Banking video) to watch and learn on the milestones, successes, learnings and how Uganda’s financial services landscape is being shaped, through Agent banking services.

Credit:

Uganda Bankers Associationwww.ugandabankers.org

                             Financial Sector Deepening Uganda: www.fsduganda.or.ug

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