Agent banking is playing a leading role in financial inclusion in the East African region, according to Equity Group Managing Director and CEO Dr. James Mwangi who was in Kampala on Friday to celebrate 10 years of the existence of Equity Bank Uganda which has moved its headquarters to new 16-floor Church House on Kampala road.
Dr. Mwangi was speaking to the media after unveiling Equity Bank Uganda’s new headquarters where he also said that by forging strategic partnership, “We achieve shared benefits. Banking is made easy, partners achieve their goals and customers enjoy convenience, ease of access and financial inclusion.” Previously, Equity Bank Uganda, an affiliate of Kenyan Equity Group Holdings, was headquartered in Katwe.
Equity Bank Uganda as of June 2018 had 1608 agent users from 412 attracted in November 2017. Mwangi said Equity Group has invested heavily in the innovative business model that is responsive to the involving societal needs and technological advancements.
Mwangi said that the bank would enhance partnerships in the next ten years to enable citizens to participate in the emerging economic opportunities in agriculture, oil and gas, manufacturing and export businesses “which we believe are the major drivers of Uganda’s socio-economic transformation.”
Mwangi said the Equity Group holdings has potential to lend up to US $250 million (Over Shs2 trillion) to Ugandan firms that would want to participate in the oil and gas sector as the country prepares to produce crude oil.
He said the Equity Group would continue with its corporate responsibility in education, agriculture and entrepreneurial training across Easter Africa and that it has set 2 per cent of its revenue earnings for that purpose.
Speaking to the media the Managing Director of Equity Bank Uganda Samuel Kirubi said the bank was eighth in the market by assets worth Shs1.03 trillion and one of the fastest growing in the country.
Kirubi said the bank has 33 branches countrywide, 971 agents (Equi Duuka), 945 points of sales terminals supporting merchant banking. It also operated in Rwanda, Tanzania, South Sudan and DR Congo.
While talking of digital banking which was launched in 2018, Kirubi said EazzyBanking App has moved a total of Shs87 billion by June 2018.
“Since we launched our digital bank a decade ago, we have continued to grow and expand both in size and in the range of our product offerings,” he said adding that digital banking offers clients customers the freedom to their banking without constraints pf time or distance.
The bank as of June 2018 had 592,464 from 261,154 while deposits have grown to Shs754.3 billion in June 2018 from Shs34.1 billion as of June 2008. It has advanced loans worth Shs600.6 billion as of June 2018 from Shs80.7 billion in 2008.
Speaking at the function, the Bank of Uganda (BoU) Deputy Governor, Dr Louis Kasekende applauded Equity Bank for using technological innovations to reach out to the rural people. He said the agent banking in which Equity Bank is the leader has boosted the financial inclusion in the country.
Dr Kasekende also commended Equity Bank for its customer centric business model where they offer micro loans from Shs300, 000. The micro loans, according to Kirubi, have grown to Shs20 billion as of June 2018 from Shs1 billion in 2008.
However Kasekende used the same forum to tell the public that BOU does not give credit to insolvent banks much as it can offer liquidity to the banks that are in need of it.