Bank agents bag sh1.8b in commission income

Bank agents earned at least sh1.814b in commission income in 2020 for supporting financial institutions extend services closer to clients, a report by the Uganda Bankers Association (UBA) shows.

UBA is a membership-based organization made up of 25 commercial banks, two development Banks (Uganda Development Bank and East African Development Bank) and 9 Tier 2 and Tier 3 financial institutions.

During the peak of the lockdown, charges were waived for the bank to wallet transactions, agent banking transactions and withdrawals done at Bank automated teller machines (ATMs). Customers were encouraged to utilise the existing digital platforms and minimise trips to banks.

In the last twelve months to December, the sector employed a total of 6,594 agents through the agent banking platform and created a total commission income of sh2.552b out of which sh1.814b or 71% was paid out to agents, UBA says.

“2020 was a challenging year for the country and the banking industry in different ways and I'm sure each one of us had a unique set of challenges to manage and overcome, and new ways of work to manage, operationalise and institutionalise,” Mathias Katamba, UBA chairperson said.

“I would like to thank the different stakeholders in the Ugandan economy and globally who through their commitment to support and work enabled the banking sector to remain resilient and stay the course during the trying times in 2020, including the lockdown occasioned by the COVID-19 pandemic,” he added.

In January 2016, Parliament passed an amendment to the Financial Institutions Act of 2004. This act allowed banks to offer agency banking services in the country.