Rethinking digital finance in Uganda for meaningful inclusion

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OPINION

By Musa Musazi

As Uganda’s digital revolution deepens, dfcu Bank is redefining inclusion, not just by building smarter technology, but by ensuring that every innovation reaches and empowers the people who need it most.

A few weeks ago, I met a hardware shop owner in one of our upcountry branches. He told me that while digital payments have made business easier, network issues and transaction costs still limit his full adoption. His story captures the reality of Uganda’s digital finance journey; progress is real, but access and inclusion remain uneven.

According to Data Reportal (January 2025), Uganda now has 14.2 million internet users and 38.6 million mobile connections, representing about 76% of the population. These numbers reflect rapid growth, but many Ugandans, particularly in rural areas, still face barriers: affordability, connectivity, and digital literacy.

Digital payments are transforming everyday life. Mobile money transaction values rose by 31.5% in 2024, reaching sh253.7t. This growth shows that more Ugandans are moving away from cash. This shift also generates valuable data for banks to design better credit and savings solutions.

But payments alone are not enough. Meaningful inclusion requires access to credit, savings, and insurance. The Digital Lending Guidelines issued by the Uganda Microfinance Regulatory Authority (UMRA) are a critical step, bringing order and accountability to online credit services.

SMEs are the backbone of Uganda’s economy, yet their digital adoption varies widely. Urban businesses increasingly use Point of Sale (POS) devices and digital wallets, while rural traders often rely on cash. Women entrepreneurs face particular challenges, with affordability and digital skills gaps limiting access to financial tools.

Bridging these gaps requires collaboration across banks, Fintechs, regulators and development partners, focusing on simple, affordable, and trustworthy digital solutions.

The Digital Transformation Roadmap (2023/24–2027/28) aims for 90% broadband coverage, but true inclusion goes beyond network signals. Electricity, devices, and user confidence matter just as much. At dfcu, our *USSD platform (240#) shows how simple, no-data solutions can reach customers excluded from smartphones or stable internet.

At dfcu, we are committed to making banking simple and accessible for all Ugandans. Our Mobi Loan service allows customers to access short-term credit instantly through their mobile phones, while our *USSD platform (240#) provides convenient banking for those without smartphones or stable internet.

dfcu Quick Banking services ensure fast, reliable transactions across accounts, payments, and transfers, helping individuals and SMEs manage their finances efficiently, anytime and anywhere.

While Uganda’s digital banking story is one of promise, inclusion is the real test. At dfcu Bank, our mission is to create technology that serves people, going above convenience. This is how we will make finance work for everyone, ensuring that growth is measured not only in numbers, but in lives improved and opportunities expanded.

The writer is the Chief technology and Digital Operations Officer, dfcu