A move to extend financial services

KAMPALA - Commercial banks and Financial Sector Deepening (FSD) Uganda are concerned about the low levels of financial inclusion.

In a new approach to extend and strengthen access to financial services, commercial banks entered a partnership with FSD to extend more services.

Emmanuel Kikoni, executive director of Uganda Bankers' Association (UBA), said financial services need to be tailored to suit the needs of low-income earners in order to achieve growth and reduction of both poverty and vulnerability.

"Uganda has a high level of financial exclusion with an estimated 15% of the adult population not having a bank account. We need to prioritize extending services to the rural areas to increase financial services."

Christopher Musoke, the chief executive of FSD Uganda said there is need to support financial inclusion through partnering with banks that directly offer financial services to the people.

"We hope that our co-operation with Uganda Bankers' Association will offer a good opportunity to work closely with the formal financial service providers to achieve this objective," said Musoke.

He urged stakeholders to create awareness and understanding of new financial service delivery models like agency banking which is key in achieving financial inclusion.

The latest partnership provides for FSD Uganda to extend financial and technical expertise to support various commercial bank initiatives that promote stakeholder-led research-driven services.