Ugandan banks increasing rural branch numbers

Feb 21, 2011

Ugandan banks are increasing their branch networks in a bid to encourage those on low incomes to use their services.

The Daily Monitor reports that 23 financial institutions in the country are seeking to step up their presence in rural areas to tap into the potential revenue streams offered by the unbanked population.

Post Bank is looking to open a branch on Koome Island to attract fishermen and Executive Director of the firm Christopher Kigenyi said in an interview with the news source that it is "better to have many small businesses [as customers] and get more revenue than getting corporates who tend to negotiate on price".

Around 95 per cent of the 2,700 individuals who live on Koome Island are unbanked and only three million of the 32 million people living in Uganda hold a bank account.

Deputy Governor of Uganda's Central Bank Louis Kasekende recently urged finance firms in the country to focus on good customer service and make it as easy as possible to open a bank account, according to New Vision Online.