By Ayiga Ondoga
FINANCIAL institutions have been advised to attract more clients and retain the existing ones with introduction of new products under the stiff competition between finance service providers.
â€œThe challenge of attracting new clients as well as retaining the old ones will definitely increase as competition increases between the different players,â€ said Justine Bagyenda, the executive director of supervision at Bank of Uganda.
Bagyenda made the remarks during the opening of the 27th branch of Finance Trust bank at Kitintale on Wednesday.
â€œAt Bank of Uganda, we urge financial institutions to take more time to find out the needs of their customers and design new products that address those customer needs,â€ Bagyenda observed.
She warned that the new products should not however leave the institutions in a state that affects the regulatory requirements and should conform to good risk management practices.
Bagyenda appealed to the finance service providers to take advantage of the current macro-economic stability in the country and the well regulated financial system to create value for the customers.
She said the central bank will continue to work closely with the Government to provide the desired and enabling macro-economic environment and control inflation so as to encourage people to save and invest.
â€œBank of Uganda has developed capacity in risk-based supervision to ensure safety and soundness of the financial sector. In turn, all financial institutions are required to adopt risk management procedures that ensure and maintain institutional safety,â€ Bagyenda echoed.
She added that the central bank was taking steps to review the Microfinance deposit-taking institutions Act in order to revitaliSe the sector and address the recent developments and challenges in the industry.
She called up on the business communities to develop the culture of saving and taking loans to grow their businesses.
Irene Muloni, the board chairperson of Finance Trust, said the bank had made significant achievement like championing the financing of women for economic empowerment, investment in infrastructure to support deposit taking, attract strong foreign investors and expansion drive to bring services closer to the customers.