Shops to provide banking services in Uganda
Uganda's authorities have approved proposals to extend banking services through agents such as kiosks to areas that are currently underserved by financial service providers.Uganda's authorities have approved proposals to extend banking services through agents such as kiosks to areas that are currently underserved by financial service providers.
"Extending financial services to the rural areas and the poor will have a positive impact on household incomes," said Uganda's Vice-President Edward Ssekandi, quoted by New Vision.
Banks will be able to offer services such as account openings, deposits and withdrawals through shops, kiosks and field agents. Centenary Bank's chief manager of e-banking Edith Kababure said that
the bank is looking
to enlist about 10,000 agents by the end of 2014.
CEO Fabian Kasi added that
the bank plans to
expand its reach through mobile solutions in addition to opening physical branches. It has entered into partnership with Ezee Money, a mobile payments provider with 15,000 agents around the country.
Kenya and Rwanda currently allow for agency banking: “There are a lot more current accounts in Kenya (than in Uganda), making it cheaper to access deposits for lending,” Anthony Kituuka, an official at
Central Bank, told the news source.