Agent Banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/ cashier.
Equity Bank has taken the central bank’s financial inclusion call a notch higher with the introduction of banking services such as agency banking to refugee societies within the East African Community.
The innovative Biometric Card Solutions enables refugees access formal financial services securely.
Agent Banking means providing limited scale banking and financial services to the underserved population through engaged agents under a valid agency agreement, rather than a teller/ cashier.
Under the agent banking arrangement, it is the owner of an outlet who conducts banking transactions on behalf of a bank.
The local banking sector has been limited in this scope due to the strict regulatory framework of the central bank. Bank of Uganda had only allowed commercial banks to transact in mobile telephony service through interlinked bank-mobile phones.
However, this mode of banking limited clients on how much one would be able to transact at a given time. To make adjustments, the new financial inclusion strategy opened the door to agent banking.
Agent banking has increased presence of providers in rural areas, including refugee settlements.
The new agency banking regulations offer a fresh opportunity for financial institutions to increase access to financial products, especially for people in rural areas.
Speaking at the launch of the biometric card solution for refugees portfolio on Tuesday, Allan Waititu the director special projects at Equity Bank, said that refugees can make for great entrepreneurs.
At Equity Bank, we see a lot of potential and opportunity in refugees, we believe that we can grow Africa by reaching the common person,” he said.
Equity Bank has disbursed over USD42 million in payments so far to more than 1,061,770 bank accounts/households.
With Uganda`s population having increased to 41 million people and the mobile penetration rate in Uganda standing at 78%, the financial inclusion rate stands at 40% leaving space for Equity Bank to bring technology to the way we bring world class services to the people.
Equity bank has been able to work in no go areas over time hence the belief that we can provide a service to the refugees as well.
Among the Equity Bank group financial inclusion milestones includes digitalization of settlement, Digital ID, low fee bank accounts, physical and market structures, and liberalization of the markets just to mention but a few