Agent banking allows customers to access financial services easilyKathryn
Formal banking services will get nearer to consumers following the launch of the Agent Banking system in Kampala.Agent banking, according to Uganda Bankers Association (UBA) will substantially reduce banks’ cost of operation but will take services closer to the people.
Dr. Louis Kasekende, the Bank of Uganda Deputy Governor, said agent banking will be critical in partly addressing a number of challenges, which among them include the cost of reaching customers and creating a diversified financial solutions system.
Agent banking allows customers to easily access financial services at efficient and a reduced cost through more than 11,000 agents who are currently spread across the country.
Customers will through the system be able to open accounts, apply for payment instruments and make deposits and withdrawal as well as pay bills. Other services will include money transfers, loan services and balance enquiry as well as receiving account statements and account information among others.
Mr. Wilbrod Owor, the UBA Executive Director, said the launch was a major milestone that is expected to change the face of the banking industry. “Extension of banking services and bringing on board the bigger proportion of our population to the formal banking system is the ultimate objective of this initiative.” He said