How is Housing Finance Bank leveraging digitization to enhance customer experience?
At Housing Finance Bank, digitization is at the core of our strategy to improve customer experience. We have introduced user-friendly digital solutions that allow our customers to access services conveniently, 24/7. For instance, customers can now open an account with us remotely without necessarily coming to a banking hall. Our HFB Mobile Banking App enables customers to monitor transactional activities on their portfolio of accounts with the Bank in real time, transfer money to accounts within Housing Finance Bank or to other Banks through the options of Electronic Funds Transfer (EFT) or Real Time Gross Settlement (RTGS). Our customers can also transfer funds to their Mobile Money Wallet or any other Mobile Money wallets of their choice. The App has been built to validate the name of the beneficiary of the funds as part of security of the App. There are several value-add services on the App including the ability to pay your utility bills or buy airtime/data by just a few taps on your smartphone. The above services are also offered through both our corporate and retail internet banking solutions including international funds transfers and foreign currency transactions.
Additionally, the USSD (*225#) service caters to customers who may not have smartphones, allowing them to perform the same Mobile Banking services through any mobile phone. The introduction of Recycler ATMs further enhances the customer experience by allowing cash deposits and withdrawals at any time, reducing the need to visit a branch or go to the banking halls. This augments our Agent Banking network across the country. By integrating these digital services, we are able to offer personalized banking solutions that meet the specific needs of each customer. Our focus is on making banking seamless, secure, and tailored to individual preferences, ensuring a superior customer experience.
What are the key digital initiatives Housing Finance Bank has implemented recently?
To set the foundation right, we have replaced our core banking system, middleware and infrastructure with the latest technologies. This will enable the Bank to seamlessly integrate with partners to extend superior experience to our customers by addressing their specific financial needs. In the past couple of years, the bank has introduced new digital services such as our novel Treasury Securities platform that enables our customers and the general public to buy Government treasury bills and bonds from the comfort of the their homes or offices, we have also rolled out an Investment Club platform called Investa App, to support investment clubs, SACCOS and similar associations to automate their internal operations giving individual members access to their ledgers and savings. We have also replaced all our old ATM fleet with Cash Recyclers, this means all our ATMs can now receive our customer deposits and cash is instantly credited to the respective accounts, a depositor does not need to have a card to deposit through our new cash recyclers, we have an inbuilt name validation functionality in the deposit process to eliminate errors. We have also implemented online account opening through the Mobile Banking App. In terms of strategic partnerships, the Bank has integrated with Airtel Uganda and Yabx to offer Quick Loans (a checkout short term credit facility for Airtel subscribers), the Bank has also integrated with both MTN and Airtel to offer various Escrow services to Mobile Money Agents both at the branches and Agent Banking points. The Bank has also partnered with PostBank Uganda to deliver Wendi Wallet services to the public and to support the government’s poverty alleviation program (PDM).
To cater for our mortgage clients, we have invested in providing the best options that streamline the home loan application process, making it faster and more transparent. This allows customers to track their loan application status online, reducing the need for frequent branch visits.
How is Housing Finance Bank addressing the digital divide among its customers?
We recognize that not all customers are equally comfortable with digital platforms as a result of either public propaganda or personal sentiments. To address this we continuously and deliberately carry digital literacy programs through platforms like regional customer forums, online customer webinars, social media engagements, and one-on-one consultations with our 24/7 Contact Centre, staff, in the banking halls and through our diaspora engagements. These initiatives aim to educate our customers about the benefits of using our digital services. Additionally, we have ensured that our digital platforms are intuitive and easy to use, even for those who are less tech-savvy. Our branches also provide support to customers who need assistance with digital tools, ensuring that everyone can benefit from our digital offerings. This approach ensures that we bridge the digital divide and make our services accessible to all.
What impact has digitization had on Housing Finance Bank’s operations and efficiency?
Digitization has significantly enhanced our operational efficiency. By automating routine processes, we have significantly reduced turnaround time. For example, account opening that used to take 3 days is now completed in under 30 minutes. Within that time the new customer gets his/her account number and gets onboarded to the various digital solutions. Outgoing RTGS and TT transactions that used to take more than 5 hours are now completed in less than an hour, the incoming RTGS and TT are now credited instantly through a straight through processing by the system. Salary loans are processed averagely within the day. Additionally, digitization has minimized the risk of human errors by reducing manual data entry and automating verification processes. This has not only improved service delivery but also allowed our team to focus on more strategic tasks, such as developing innovative financial products. Furthermore, digitization has reduced our reliance on physical infrastructure, lowering operational costs and enabling us to offer more competitive rates to our customers.
How is Housing Finance Bank ensuring security as it embraces digital transformation?
Security is a top priority as we continue our digital transformation. To build confidence and trust in our digital solutions, management has continuously invested heavily in enhancement of the Bank’s cybersecurity posture. This includes implementation of Multi-factor Authentication for our Mastercard Online and Internet Banking products. For the Mobile Banking App, in addition to the PIN, the customer can enable biometric authentication (Fingerprint Authentication for Android users and Facial Recognition for iOS users). This eliminates risk of loss of customer money through stolen PINs. Data protection and integrity remains a key focus for the Bank. The Bank has therefore commenced the journey to obtain ISO 27001 to strengthen and benchmark its Information Security Management Systems (ISMS) to international standards.
We have also implemented multi-layered security measures, including encryption, real-time fraud detection, and robust access controls to safeguard our customers’ data. Our IT team continuously monitors for potential threats, such as phishing attacks or unauthorized access attempts, and ensures that our systems are up-to-date with the latest security patches. Additionally, we continuously train our staff and educate our customers on best practices for maintaining their own digital security, such as creating strong passwords, routinely changing passwords and not sharing personal information online. This proactive approach helps protect their accounts and ensures a secure banking experience.
How does digitization align with Housing Finance Bank’s mission and long-term goals?
Digitization is fully aligned with our mission to provide efficient, innovative, customer centric financial services so as to maximize stakeholder value. Delivering superior customer experience through digitization is a key pillar of the Bank’s strategy. By embracing digital technologies, we are able to reach more people, including those in underserved areas, and offer them the tools they need to achieve financial inclusion and independence. For example, our mobile banking solutions enable customers in remote areas to access banking services without needing to travel to a branch. Our long-term goal is to become a leading digitally empowered Bank in the region, offering cutting-edge services that enhance the financial well-being of our customers. This includes continually innovating and expanding our digital offerings to meet the evolving needs of our customers.
How is Housing Finance Bank using digitization to support financial inclusion?
Digitization is a powerful tool for promoting financial inclusion. We have developed digital banking solutions that are accessible to everyone, including those in remote areas. For example, our mobile banking platform allows customers to open accounts, pay bills, and manage their finances without having to visit a branch. We’ve also introduced agent banking, where customers can access banking services through our 1200+ partner agents in their local communities. This ensures that even those without access to traditional banking infrastructure can benefit from financial services. We’re also working with leading Fintech partners to develop innovative solutions that can reach even more people in a personalized manner and bring them into the formal financial system, further supporting our mandate of financial inclusion for all Ugandans.
What are the future plans for digital innovation at Housing Finance Bank?
Looking ahead, we’re committed to continuing our digital innovation journey. We plan to introduce more AI-driven services, such as automated financial advice and advanced fraud detection systems that can identify and prevent fraudulent activities in real time. We’re also exploring new financial technology to enhance transparency and security in our operations, particularly in areas like mortgage processing and transaction verification.
Additionally, we aim to further integrate our services with digital ecosystems, enabling customers to manage their finances seamlessly alongside other aspects of their digital lives, such as e-commerce and mobile payments. This will ensure that Housing Finance Bank remains at the forefront of digital banking innovation.
As a bank, what steps are you taking on the current trend of digitization in the banking sector?
Having built the right infrastructure, replaced the core banking system with the latest technologies and enhanced the integration capability, the Bank is now focused on enhancing its data analytic capability so as to remain relevant to its customers and the public. True customer centricity implies listening and understanding the customer through behavioral trends. This builds agility and therefore relevance to the market. The Bank will drive an Omnichannel agenda but also work closely with strategic partners to leverage the various emerging technologies to meet its customer ever changing needs.
What advice would you give to other banking leaders embarking on digital transformation?
My advice is to always put the customer at the center of your digital transformation efforts. Understand their needs, listen to their feedback, and design digital solutions that truly add value to their lives. For example, before launching a new digital service, conduct user acceptance testing with a diverse group of customers to ensure it meets their needs. It’s also important to invest in the right technologies and talent—your team needs to be well-equipped to navigate the challenges and opportunities that come with digitization. Finally, stay agile and open to innovation, as the digital landscape is constantly evolving. This means being willing to pivot and adapt your strategy as new technologies emerge and customer expectations change.