Bankers tipped on practical financial literacy

By Oyet Okwera

IN 2013, Uganda Bankers' Association officially launched a nationwide financial literacy campaign with the aim of increasing financial inclusion especially in the rural communities. 

Two years later, bankers' observe lack of practicability in knowledge accruing from the program.

Dr. Louis Kasekende, deputy governor at Bank of Uganda advised stakeholders to ensure that all businesses lead to the country's economic growth. Kasekende said BoU will continue supporting initiatives aimed at increasing financial inclusion with bias to practical businesses.  

He warned bankers to be wary about different forms of fraud especially the ICT related fraud which continues posing threats to the industry. Kasekende advised bankers to use financial literacy programs to openly identify all forms of fraud.    

Fabian Kasi, the managing director, Centenary Bank who doubles as chairman Uganda Bankers' Association (UBA) said financial literacy should increase practical skills in earnings, savings and investments. Kasi advised the business community to recognise financial literacy as critical in progressing business.

He was speaking recently during a joint function to launch a financial literacy documentary and bidding farewell to outgoing UBA chairman, Chinedu Ikwudinma who is also the MD, Citibank. 

"With the exception of the recent rapid growth in mobile money services, access to formal financial services remains low with about 80% of population having no access to financial services," said Kasi.

He said UBA is willing to search for more initiatives that can spread financial literacy faster to rural communities.

Already, the SMS platform has been chosen to put initiatives in the hands of the customer so as to seek for UBA assistance in financial literacy matters.

According to Emmanuel Kikoni, executive director at UBA, there is need for stakeholders to preach financial literacy alongside ensuring business growth through best practices. Kikoni noted that for any business prosperity, there is need to appreciate knowledge on finance relating to specific investments one can engage in.

According to the 2013 UBA reports available in the financial literacy guide, Uganda is under-banked with only 5.1 million bank accounts.

Recently, government officially launched a project for financial inclusion in rural areas whose focus is to increase access to provision of sustainable financial services by the rural poor through promotion of savings and credit cooperative organizations (SACCOs).