How centenary bank empowers SACCOs and vlas

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Briefly tell us about linkage banking and provide more context or details about its strategy for closing the financial gap.

Linkage banking is an outreach strategy that has been embraced by the bank to not only create inroads for businesses, but also build avenues through which customers can be served through strategic partnerships.

The strategy focuses on four business strategies of Microfinance Deposit Institutions (MDI), Micro Finance Institutions (MFIs), Savings and Credit Co-operative Society (SACCOS) and Village Savings and Village Savings and Loans Associations (VSLAs) to empower participants to increase access and control over resources, as well as use collective power to overcome social and financial barriers.

What is the size of the bank’s portfolio in terms of SACCOS and VSLAs?

The linkage banking portfolio stands By John Ricks Kayizzi HOW CENTENARY BANK EMPOWERS SACCOS and vlas BUSINESS VISION NV 21 Thur

What products has Centenary Bank designed to respond to the financial needs of saving groups for ordinary Ugandans?

CenteSACCO account (savings and current accounts), which targets all types of co-operative societies, such as SACCOS, agricultural and marketing co-operative societies, fishing cooperative societies, fishing cooperative societies, farm supply cooperatives, insurance co-operative societies, consumer co-operatives societies and multi-purpose cooperative societies,

Others are in transport, such as bodaboda co-operative societies, taxi owners, drivers and operators cooperative societies, unions and area co-operatives, among others 

Government projects, such as the Parish Development Model (PDM) SACCOS, Emyooga SACCOS and Project for Financial Inclusion in Rural Areas SACCOS are also covered under the linkage banking strategy

What is the main purpose of this account? The purpose of this account is to motivate co-operatives, such as SACCOS, to accumulate savings for financing their lending operations and investment plans, thus enabling them to realise their shared objectives and goals.

Break down the benefits this service offers to the SACCOS according to your strategy as mentioned.

There are wider services the bank offers to co-operatives, such as SACCOS. First, convenience is key

The accounts opening is at zero balance. We also ensure that we ease access to account information through free quarterly bank statements offered. Convenient account opening is also done in the field.

The bank pays attractive interest on SACCOS deposits kept in the bank and provides skill & knowledge through free financial literacy trainings and mentorship. The SACCOS enjoy a free charge account with no monthly ledger fees

The bank also offers a protective insurance policy to members & their families at lower premium rates and also provides convenient cente mobile digital technology through CenteLinkApp

We have quality services by a dedicated management team (linkage banking department and branch network) and our cheap overdraft loans for onward lending to SACCOS’ members up to sh200m without collateral/security.

What about the Village Savings and Lending Associations (VSLA)?

CenteVSLA savings account was developed in 2013, piloted in Karamoja sub-region, under the GIZ support project. Upon success, it was rolled out countrywide in 2015

The purpose of the account is to motivate VSLA groups to accumulate savings for financing their lending operations and investment plans, thus enabling them to realise their shared objectives and goals.

The account targeted groups,such as VSLAs, community-based organisations, farmer groups and associations, Uganda Women Entrepreneurship Programme (UWEP), Youth Livelihood Programme (YLP) and Northern Uganda Social Action Fund (NUSAF) groups, among others.

What impact have you created in the course of reaching out to close the financial gap in Uganda for saving groups?

We have promoted financial inclusion in the country, banked over 68,000 VSLAs across the country. The deposits are to the value of sh73b for VSLAs. The bank has financed over 9,000 groups and so far,reached over 28,000 member enterprises through wholesale lending to VSLAs, impartation of skills and knowledge.

through free financial literacy training and offering free digital technology to increase access to banking in rural areas The bank has promoted government projects, such as NUSAF, YLP, UWEP, PDM, PDM, Emyooga, through free-charge
account offerings to beneficiaries.

For inquiries, contact any of our 79 branches or contact our toll free call centre, 0800 200555/0800 335344