Digital Age: Dfcu Invests $10m in the ‘Branch of the Future’

Dfcu is investing in modern bank branches to provide a great experience for customers (Net Photo) Dfcu bank is pumping about $10m in a new experience for its customers, officials said Saturday afternoon.

The bank on Friday night started relocating its premises to new areas which are being fitted with modern digital technology systems as the financial sector goes through a digital transition.

“Dfcu bank wishes to advise customers that the following branches will be relocated to the following locations effective Friday 31st January, 2020,” reads part of the bank’s statement issued today.

The affected areas are Kampala road branch, 6th street branch, Luwum street, Banda branch and Kabira ATM. ChimpReports understands more branches across Uganda will be moved.

At its 2019 Annual General meeting, the Bank said it was in the process of implementing its digital strategy to “drive better customer experience, improve efficiency and align its operations with emerging trends in the financial sector. This calls for continuous rationalization of branch operations and redesigning of the Branch model.” Dfcu is investing in modern bank branches to provide a great experience for customers (Net Photo) The Bank has, in the last two years, enhanced some and introduced new alternative delivery channels like Agent banking, Online banking and Mobile banking to support its digital agenda.

According to Agent Banking Company of Uganda (ABC), agents of at least 10 commercial banks that are providing this new banking service are transacting an average of Shs30b daily.

Indications are that Dfcu is investing heavily in digital banking.

“What will the branch of the future look like? Big branches don’t work anymore because as of last year about 20% of transactions went through agency banking,” said a banker at a recent event, adding, “Dfcu is transforming to meet customers’ needs – a whole new look and new design to give customers a different and satisfying experience.”

Ugandan banks are also keen on reducing the cost of intermediation as an industry which is now at 70 per cent and extremely high in East Africa.

Dfcu has already started moving a bit of its transactions from the banking hall into agency banking.

Banking experts say legacy branches are typically too large, lacking technology and are becoming irrelevant in today’s dynamic market.Across the world, many of these older branches are being downsized or replaced with new experiences, technology and retail packages.By fragmenting a branch design into small divisions of functionality, banks are able to offer a […]

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