Uganda Bankers' Association
Tel: (256) 414 343 199 |Fax: (256) 414 342 334
Email: etkikoni@ugandabankers.org | Web: ugandabankers.org
Location: Plot 10 Buganda Road, Kampala, Uganda Postal Address: P.O.Box 8002, Kampala, Uganda  UBA: Home Business Bankers partner with technology firm on agency banking The Uganda bankers’ Association (UBA) has partnered with a Kenyan Financial Technology firm, Eclectics international, to form a centralized digital platform that will enable banks to share agents, once agency banking is rolled out.On the platform, according to Fabian kasi, the UBA chairman, banks will be able to use one agent in a given location, to benefit from cost reduction and centralized monitoring.“Under this arrangement, we shall have all agents under one central registry, which banks will access in order to appoint their own agents. The agents will also be displayed on our different digital platforms. However, the banks will continue to drive the recruitment of customers and marketing of their other products individually,” he said.Kasi was speaking during the signing of the memorandum of association with Eclectics, at the Uganda bankers’ Association offices in Kampala.Eclectics is a Kenyan based and owned organization operating in 23 African countries providing financial solutions to support banks, micro finance institutions.He said the tech platform will also increase their points of presence while enabling them to upgrade their technology collectively at a reduced and affordable cost. Read more ▪ UBA: Banks partner to grow shared agent banking platform Commercial banks, through their umbrella body, the Uganda Bankers Association (UBA), have signed a joint venture partnership with Electics International, a pan-African private company to roll out a shared agent banking platform.Agent banking is where a licensed financial institution engages an agent to provide special financial services on their behalf. Under the partnership, Electics will design, develop, deploy and operate the inter-operable shared platform that connects all 25 member banks to the agent network across the country. Electics International serves more than 205 banks across 23 countries in Africa and focuses on provision of affordable IT solutions.Read more ▪ UBA: Banks form central platform for agency banking The platform, according to the Uganda Bankers’ Association (UBA) chairman, Fabian Kasi, will also help banks in spreading the risks associated with cybercrime and fraud, after the product is fully rolled out in three months’ time. As the Bank of Uganda finalizes regulations to support agency banking, financial institutions have agreed to form a centralized platform that will enable them to share agents across the country in order to reduce administrative costs.The platform, according to the Uganda Bankers’ Association (UBA) chairman, Fabian Kasi, will also help banks in spreading the risks associated with cybercrime and fraud, after the product is fully rolled out in three months’ time. Read more ▪ Mr Wilbrod Owor, the executive director Uganda Bankers Association, Do not cap interest rates, says experts Experts have warned that the move for a private members Bill to control interest rates in Uganda, if approved, will have adverse effects on the economy.The Civil Society Budgetary Advocacy Group (CSBAG) has suggested a private members Bill to amend the Financial Institutions Act to include an interest rate ceiling of 5 percentage points of Central Bank Rate (CBR). This implies that with the current 14 per cent CBR, commercial banks would not be allowed to lend at above 19 per cent.Mr Wilbrod Owor, the executive director Uganda Bankers Association, in a statement issued to Daily Monitor on Tuesday, said: “Interest control regime would stifle free market forces, discourage credit growth, constrain sector appetite and encourage black credit market at very high cost and terms.”He added that besides there is little evidence to show that the same laws have yielded growth in credit for other countries. The interest rate stands at an average of 23 per cent. Read more ▪ UBA: A move to extend financial services Commercial banks and Financial Sector Deepening (FSD) Uganda are concerned about the low levels of financial inclusion.In a new approach to extend and strengthen access to financial services, commercial banks entered a partnership with FSD to extend more services.Emmanuel Kikoni, executive director of Uganda Bankers' Association (UBA), said financial services need to be tailored to suit the needs of low-income earners in order to achieve growth and reduction of both poverty and vulnerability."Uganda has a high level of financial exclusion with an estimated 15% of the adult population not having a bank account. We need to prioritize extending services to the rural areas to increase financial services.”Christopher Musoke, the chief executive of FSD Uganda said there is need to support financial inclusion through partnering with banks that directly offer financial services to the people."We hope that our co-operation with Uganda Bankers' Association will offer a good opportunity to work closely with the formal financial service providers to achieve this objective," said Musoke. Read more ▪ UBA: Reducing interest rates will not be immediate - industry players The reduction in the Central Bank Rate (CBR) from 17 to 16 per cent, will slightly lower interest rates but not very soon, Uganda Bankers Association (UBA) has said. In an interview with Daily Monitor, the chairman UBA, also the managing director Centenary Bank, Mr Fabian Kasi, said reduction in the CBR is a welcome development because it is going to slightly lower the cost of funds which banks borrow to lend out to the general public.“The question as to whether banks are going to reduce the lending rates will depend upon each bank and it is going to be gradual. This is because there are many things which banks consider to decide on a particular rate. Some of these factors are cost of funding where they are borrowing from, as well as risks involved in the business,” he said. Read more ▪  UBA: Bankers demand fast-tracking of industry legislation Cabinet delay to see through legislation that will allow the banking industry introduce several new products and enable the players tap into more innovative ways of doing business is frustrating progress.Despite pronouncing itself on the matter, government is still dragging its feet over legislations that will allow banking industry players widen their services to encompass emerging development.The banking industry leadership wants the policy makers to consider speeding up passing of such legislations so that the industry players can launch them after years of preparation. In his speech at the joint annual bankers’ dinner in Kampala, Uganda Bankers’ Association (UBA) chairman Fabian Kasi said: “UBA hopes that we continue to get laws and regulations that are conducive to effective banking environment, and to this end we would like to urge policy makers to fast track the passing of laws that will enable provision of more banking products.” Read more ▪ UBA: New Excise Hikes Uganda Bank Charges The 10% excise duty levy on bank charges and transfer fees that was making banking expensive and giving cause for customers to re-think their options.Commercial banks have hiked their banking charges and in the process many business people are beginning to feel the pinch.Emmanuel Kikoni , the Executive Director of Uganda Bankers Association said the banks had no choice but to comply with the law.He said the duty to collect tax places a heavy responsibility on banks which increases their operational costs which have to be covered.Kikoni said while the 10% Excise Duty is collected by banks as agents of the government, the tax should be paid by the consumers of bank services.Kikoni said the objective of attracting deposits in banks may be defeated despite their efforts to carry out financial literacy to create awareness throughout the country.So, banks will collect the tax from the customers and remit it to URA. URA granted a dispensation to banks to make the first remittance. Read more ▪ Uganda Bankers Association (UBA) will invest up to Shs250 million in promoting financial literacy, the chairperson, Mr Chinedu Ikwudinma, has said.“This is an on-going programme, and reflects the commitment of the UBA to financial management culture, to support our national ambitions for strong economic growth and eradication of poverty,” he said. The bankers’ body has also advised the public to make the right choices in order to access low interest rate loans from commercial banks.The advice comes as high interest rates continue to be a big problem in Uganda’s financial market, which in a way has crippled the development of small/medium enterprise as well as access to financial services to the large population. Read more ▪ |