Transaction volumes through shared agent banking have grown to a monthly average of Shs2.2 trillion, according to Uganda Bankers’ Association (UBA).
The growth marks a shift in financial movements that had previously been dominated by traditional banking measures, key among them, over the counter transactions, cheques and other transactional mediums.
Agent banking, Internet banking and mobile money have been major revolutions in money movement and are likely to deliver Uganda a cashless economy that had been absent over the years.
Currently, UBA, which launched agent banking in 2018, is working on a shared platform through which all banks can transact through a single agent.
The platform, UBA says, currently transacts an average of Shs2.2 trillion per month and has accumulated more than 12,154 agents at the moment.
In a notice last week, UBA said at least nine banks had now joined the platform, two of which had been confirmed just last week.
The two banks, including Centenary and KCB last week joined the core of the original banks such as Stanbic, Barclays (now Absa), Bank of Africa, Diamond Trust Bank, dfcu, Housing Finance Bank and GT Bank that had formed pioneered the platform in 2018.
Prior to the launch of agent banking by UBA, Equity Bank had been operating a similar model and had, by December 2018, accumulated about 1,683 agents across the country.
The shared platform, according to UBA, minimise duplication of services and maximises points of coverage spread across the country.
The system delivers financial services outside the conventional brick and mortar banking system with a licensed agent able to take deposit, withdrawals and approved payment services on behalf of a member bank.
The system, according to UBA has been a key driver in financial inclusion, providing a bridge between banks and customers across the country.
The shared platform is anchored by three technology companies including Eclectics, Fintech Company of Uganda, and Efficiencie Uganda.Electrics provides the software platform, while Efficiencie provides pinpads, bluetooth printers and related gadgets such as phones. Fintech Company of Uganda provides point of sale gadgets. editorial@ug.nationmedia.com
