The lender recorded 11% growth in net profits to Shs269bn in 2021
Kampala, Uganda | ISAAC KHISA | Stanbic Uganda Holdings Ltd, a mother company for Stanbic Bank – one of the country’s oldest banks, which for nearly two decades served corporate clients, is now trying to remodel.
The country’s largest publicly listed lender not only wants to use technology to drive much of its business transactions but is also coming up with new products to manage competition and increase profitability.
Stanbic Chief Executive, Anne Jjuuko, said the bank now wants to do banking differently, stepping out of the box because it has always extended credit to salaried people, whose space is now filled up.
“We know that the customer we served 10 years ago and the one we are serving now have fundamentally changed. In the past, one would visit a branch manager, now one no longer needs to come to the bank,” she said while releasing the financial results in Kampala on March.30.
“In the past, one would write a loan application to the bank and wait for long, that has changed, the process is much faster now. We are in the age of urgency, age of immediacy and age of digital self-service. One can now get a Stanbic personal loan in under two minutes for the existing customer via our digital channels.”
Jjuuko revealed that Stanbic has started entering into partnerships and collaborations with various savings and credit cooperative societies, health workers, and developers of industrial parks among others.
Supporting SACCOs
Juuko said, the Sacco offering is at the heart of their financial inclusion agenda adding that the lender has come up with the Economic Enterprise Restart Fund where it sources loans at lower interest rates to SACCOs for onward lending to members at less than 12.5% per annum.
She said 150 SACCOs have so far received this funding impacting 220 beneficiaries since 2020.
“Our dream is that this fund will reach US$100million benefiting 10million Ugandans in the next five years,” she said.Between August 2020 and December 2021, 150 SACCOs totaling a membership of 220,463 people, have shared in Shs18bn that was lent out to these savings groups. Benefits that go with the loans include financial management training, initiation to digitization and generous transactions terms for account holders.In light of the economic disruptions caused by the Covid-19 pandemic, these funds offer a vital lifeline for the most vulnerable to financially recover and […]
