Q&A with Dr. Ketan Morjaria On Partnering With the I&M Group Plc to Continue His Dream of Providing Affordable Banking Services to Ugandan Businesses In April 2021 shareholders of Uganda's Orient Bank⏤ then a 28-year-old family-founded bank, agreed to a strategic majority acquisition and merger with the Kenya-headquartered as well as family-founded I&M Group Plc. The merger further solidified the publicly listed Group's position as one of East Africa's leading banking and insurance Groups in Eastern Africa with a presence in Kenya, Mauritius, Rwanda, Tanzania and Uganda. But more importantly, for Dr. Ketan Morjaria, the Orient Bank founder, this strategic marriage was a continuation of the dream that he had in 1993 when he founded Orient Bank⏤ of providing professional banking services to the Ugandan market and eventually East Africa. For the I&M Group Plc, the deal provided an avenue to bring alive, its purpose as Eastern Africa's leading financial partner for growth.

As the I&M Group celebrates 50 years of building this strong foundation and looks forward to the future with optimism, Dr. Ketan Morjaria, who is also a shareholder and Director at I&M Bank Uganda recounts the bank’s past and shares key insights on how the bank is investing and evolving into a reputable and vibrant player in Uganda’s financial services industry.

What inspired you to start Orient Bank⏤ there were many other ways you could have invested. What was your vision at the time? What did you want to achieve? 

In the 1990’s I was involved in the trading business which later evolved into a forex business due to the lack of foreign exchange availability in Uganda. During this period, I found that the accessibility of banking services was heavily concentrated amongst international banks and as a consequence this made access to these services very expensive for local entrepreneurs and the business community at large. 

I therefore had the idea of forming my own bank to provide affordable banking services for local entrepreneurs and the SME business community. Our vision was to provide professional banking services to the Ugandan market and eventually East Africa.    

Can you share any memorable moments or milestones in the bank’s history that stand out to you?

Throughout this journey, there have been many memorable moments. However, a few that really stand out are when we initially began operations. We started with a very manual system which eventually grew into one of the best and modern core banking systems that allowed us to compete with the more established banks. After opening a few branches, in 2001 Orient Bank acquired TransAfrica Bank which further cemented the bank’s ability to grow not only organically but also via acquisitions. This increased the bank’s coverage and footprint to 10 branches.

In 2007, Orient made another first in the market by partnering with Visa to launch the first plastic bank card for the Ugandan market. Since then, the bank’s strategy always prioritised digitisation, and we were proud to launch further products in the market such as the Xpresspay payment gateway and Fastpay Mobile Banking app between 2015 and 2019. 

In what ways has the banking industry evolved since the establishment of the bank, and how has the bank adapted to these changes?

The Global Financial Crisis of 2008 created multiple ripple effects across the banking sector internationally. The tightening of banking regulations and the introduction of enhanced due diligence and KYC compliance for Anti-Money Laundering (AML) meant banks like us had to quickly adapt and roll out new compliance systems and procedures whilst also strengthening core capital to demonstrate sound financial stability.

Looking back, what are some of the most significant challenges the bank has faced, and how were they overcome?

As the bank prioritised digitisation as a core strategic pillar, this brought with it, new and evolving threats, particularly in the cyber security space. Criminals were becoming more sophisticated in their approach, and this led to a large increase in digital fraud. Orient Bank, once again quickly adapted by investing heavily in cyber security and procuring world-class international systems such as firewalls and new 24/7 digital monitoring capabilities to curb this threat.

Nearly three years ago, you decided to partner with I&M Group Plc to drive Orient Bank to the next level. What made you agree to partner with I&M Group Plc? 

Historically, I&M Bank and Orient Bank had similar core values and shared a vision of providing modern banking services with a tradition of trust. As I&M Group Plc were planning to scale their banking business across East Africa, I felt it was a perfect opportunity to partner with them and extend their reach into the Ugandan market as well as tap into their numerous strengths to keep our vision of providing affordable banking services for especially local entrepreneurs and the SME business community alive. 

It is now three years of this partnership⏤ how is this partnership helping you deliver on the objectives you had of starting a bank in the first place? 

Digitisation remains a core pillar, and since the partnership we have continued to significantly invest in this area including the introduction of a new, more enhanced core banking system. Further, our head office has moved into Kingdom Kampala demonstrating a continued modern outlook. Within this move, we have also introduced the I&M digital pod that allows our customers to access banking services 24/7 via new multi-service ATMs.

Our paid-up capital in the bank has increased to UGX210 billion, demonstrating the bank’s ability to remain financially stable and comply with the Bank of Uganda’s new enhanced capitalisation programme. 

What do you see as the key factors that have contributed to the bank’s longevity and success?

Sound financial discipline coupled with the continued recruitment of competent and talented staff. Furthermore, being able to continuously innovate and stay ahead of the curve by providing customers with more affordable and accessible banking products that reflect their business needs.

Looking ahead, what are your aspirations and goals for the bank in the coming years and decades? 

Our priority is to grow the bank’s market share with the vision of becoming a top 5 bank in Uganda over the next decade. To achieve this we believe continued investment in digital services will be critical as our belief is more customers will demand “convenience banking” in the coming years.

We are very grateful to the service of our former CEO Mr. Kumaran Pather who laid the foundations for this growth and to Mr. Robin Barstow, our current CEO, whom we are confident will lead the bank effectively to ensure this goal is achieved.  

Lastly, what message would you like to convey to the bank’s customers, employees, and stakeholders on this momentous occasion?

I would like to give a heartfelt thank you to our customers for their loyal support over the last 31 years and request them to continue supporting the bank over the next 50 years! Our commitment has been and always will be to put their interests first. 

Further, I would also like to express my gratitude to my fellow Directors as well as our staff members for their hard work and dedication to the company in ensuring its goals are achieved. 

Lastly, I would also like to thank the Bank of Uganda for its leadership in ensuring macroeconomic stability and providing a banking legislation framework that encourages growth and transparency within the economy at large.