KAMPALA, October 23, 2024 – The Uganda Microfinance Regulatory Authority [UMRA] and Post Bank Uganda have signed a memorandum of understanding (MoU) aimed at digitalising the operations of all Savings and Credit Cooperative Organisations [SACCOs] across the country.
The MoU will extend digitalisation to other Tier 4 microfinance institutions, including self-help groups, community-based microfinance organisations, and non-deposit-taking microfinance institutions, through Post Bank’s Wendi Mobile Wallet Application. This initiative is expected to enhance financial inclusion.
“With Wendi, we are thrilled to empower individuals and groups, particularly those underserved by traditional financial institutions, to access secure savings accounts, earn 10 percent annual interest on daily savings, and conduct various financial transactions,” said Andrew Kabeera, Executive Director of Post Bank Uganda.
“The partnership with UMRA will enhance financial literacy skills and ensure that savings groups have access to essential financial services, regardless of their banking affiliation,” he added.
A 2023 Finscope Survey indicated a significant rise in SACCOs utilising mobile money services in Uganda, with usage increasing from 23 percent to 42 percent since 2018, peaking during the COVID-19 pandemic. Additionally, only 2 out of 10 Ugandans save electronically, highlighting the urgent need for digital solutions like Wendi to bridge the financial inclusion gap.
Post Bank officials stated at the signing of the MoU in Kampala days ago that Wendi aims to provide secure and convenient financial services to address these challenges.
Edith Tusuubira, Executive Director of UMRA, emphasised the importance of partnerships in driving transformative impacts on Uganda’s financial landscape. “Leveraging Wendi to digitalise savings groups nationwide is a significant initiative. We thank Post Bank for this innovative approach, which aligns with Uganda’s National Financial Inclusion Strategy aimed at improving access to financial services for millions of Ugandans. By embracing digital technology, we will enhance financial literacy, security, and convenience for our people while fostering economic empowerment,” Tusuubira said.
“UMRA is committed to supporting sector players like Post Bank that introduce services like the Wendi Mobile Wallet. These services address key challenges faced by informal savings mechanisms, such as security risks, tracking transaction difficulties, inefficient manual processes, and vulnerability to fraud. Our goal is to streamline operations as the regulator,” she added.
https://thecooperator.news/post-bank-uganda-to-become-agriculture-bank/
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