Financial Institutions Urged to Embrace Innovation

19 financial institutions have been part of the pilot study which is seeking to expand on financial inclusion through low-cost innovative platforms to millions of rural households in Uganda. “How many bank accounts do we have under 6 count? 6 million, so if at least a person has a phone and you looked at the penetration for mobile money compared to the accounts still, it is still way out of range.” Said, Billy Bisanga – Manager Product Development, Bank of Africa.

The government of Germany through the Frankfurt School of Management front loaded 23 billion shillings with guidance to the financial players tied to robust innovations. “Some have embarked on providing new electronic solutions in order to access rural clients, others have enhanced credit access to small-scale agricultural producers whilst others have enhanced provision of credit for solar energy facilities in rural areas.” Said, Daniel Mutabingwa – Senior Project Coordinator, Frankfurt School of Management. Lower tiers of the financial sector such as Micro Deposit Institutions MDIs also had an interface with a million households the study indicates. “We’ve learned a lot through this process that has given us the ability now to build scorecards that are actually relevant and can help us make similar decisions for a new customer who is not within the banking system.” Said, James Onyutu – Managing Director, FINCA Uganda Ltd.

The Uganda National Financial Inclusion Strategy 2017/2022 seeks to reduce financial exclusion from 15% to 5% over the next four years. “It’s just bringing new knowledge, innovation to bear with the decision processes and the policy processes of this country.” Said, Peter Ngategize – National Coordinator, CICS Secretariat – Ministry of Finance.