Small and Medium Enterprises (SMEs) will blossom once agency banking takes root in Uganda, Equity Bank Uganda Executive Director, Anthony Kituuka has said.
He revealed this while addressing members of over 40 Investment Clubs at a Cocktail event held on Thursday at the Protea Hotel, Kampala.
The event was aimed at discussing the Equity investment club account and digital era.
Speaking to Business Focus at the sidelines of the event, Kituuka said delayed issuance of agency banking guidelines from Bank of Uganda (BoU) has partly affected SMEs in rural areas that aren’t currently served by banks.
Speaking with Business Focus on the sidelines at the cock tail party
“The law is already in place; we are only waiting for regulation (guiidelines) from Bank of Uganda to rollout. With agency banking, the bank agents can be anywhere without necessarily banks opening branches there,” he said
Kituuka says that banking agents can provide bank services outside bank offices anywhere.
It is estimated that over six million Ugandans have accounts with banks and currently, over nine out of 10 adults in Uganda need to travel for more than an hour to access a bank branch.
In the East African region, Equity Bank boosts of having over 27,000 banking agents in Kenya alone and over 2,000 in Rwanda and DRC, serving effectively the investment clubs which have been able to invest massively in various ventures.
According to Kituuka, the unveiled investment club culture at Equity Bank will bring more numbers to own accounts with the bank.
“We want people to open up accounts with the bank. Imagine members of SACCOs through investment clubs accounts will have access to bank services,” he said.
He added that Investment Clubs aid the growth of (SMEs).
Peter Mboowa, the Head of Treasury at Equity Bank said they started the investment account to help their customers in the record book keeping and save wisely.
“During our research, we discovered a lot of challenges and perception about the investment clubs. People cited lack of transparency, poor saving culture and ignorance,” he said.
