Stanbic Bank Uganda has countered fraudulent activity by a few of its banking agents aimed at defrauding the bank through a process flow error that affected some third party agent banking transactions.
In a statement dated September 1, 2021, Stanbic said the incident did not affect customer transactions or balances and agency banking services continue to operate normally.
“Effective operational safeguards are in place to prevent future recurrences. In liaison with law enforcement, the bank is undertaking measures aimed at recovering from the implicated agents who sought to benefit from the error by retaining funds that should have been remitted to the bank,” the statement reads.
About Agent Banking
Stanbic Bank embarked on the agent banking model three years ago, as a sustainable strategy to contribute to Uganda’s effort of deepening financial inclusion among Ugandans.
To date, Stanbic Bank has a network of over 3500 agents accounting for nearly 30% of the bank’s total transactions. The model has proven to be beneficial in many ways including providing business opportunities to qualifying Ugandans, job creation in form of agent tellers, taking banking services nearer to customers while reducing on traffic within branches and promoting inter-bank and telecom interoperability.