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Banking in Uganda


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An insightful presentation by Obopay on banking and mobile scenario in Uganda.

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Banking in Uganda

  1. 1. Banking in Uganda
  2. 2. Understanding the Basics Traditional Mobile Users Mobile Banking Banks • Banking for the• Banking Model • No of Mobile Unbanked Users• Gaps in the Model • User-friendly • Mobile Technology• Banked percentage Penetration of the Population • Reducing Expenses Like us on
  3. 3. Banking Model: Simplified • They are authorized to hold checking, savings and time-deposit accounts for individuals and institutions in local as well as International currencies.Commercial • They are also authorized to buy and sell foreign exchange. Banks • They are authorized to take customer deposits and to establish savings accounts. • They are also authorized to make collateralized and non-collateralized loans to Credit and savings and non-savings customers. Finance companies • They are allowed to take deposits from customers in the form of savings accounts.Microfinance Deposit- • MDIs are not authorized to offer checking accounts or to trade in foreign currency. takingInstitutionsSource: Wikipedia Follow us on
  4. 4. Banking in Uganda: Fact File • About 79% of Ugandans transfer their money through relatives or taxis, while 13% use mobile money. • Total population holding accounts in banks is 4 million, or 33 per cent of the 12 million who are bankable. • The number of commercial bank branches have risen to 455.Mobiles have become the easiest way to exchange moneySource: Mobile Money Wikipedia Africa Uganda business Read our
  5. 5. Mobile Connectivity Total Subscribers: 12 million. 33-40 SIM cards for every 100 people. Population Penetration: 38.4% Source: Budde ihub Join us on
  6. 6. The Need for Mobile Banking Uganda largely has a cash based economy and 8 in 10 of those engaged in money transfers, send or receive it in cash. Apart from Western Union and Moneygram, there are no competitive offers by local banks for person to person cash transfers. The majority of Ugandans give ‘consumption’ or ‘meeting household needs’ as well as ‘emergencies’ like burial as the main reason for saving.Source: Mobile Money
  7. 7. The Need for Mobile Banking Commercial banks on the other hand, design savings products that require high, minimum and operating balance. Customers who want to access money beyond such limits suffer a cash penalty. These limitations plus additional fees on otherwise normal banking transactions like account closing and reactivation make most bank products un-competitiveSource: Mobile Money
  8. 8. Bringing it all Together Consumer Linkages • Universal • Eco-system approach • Ubiquitous • Direct integrations • UI • Inter-operable Platform • High Performing GTM • Efficient • Investment in branding, distribution • Global and operations • Strategic partnerships • Appetite to stay the course Mass Market Offerings Drive Volume/Profitability Create Largest/Network EffectCorporate Website Like us on
  9. 9. Thank You