Opportunity Uganda has rebranded its business name to Opportunity Bank with an upgrade from a Micro Deposit Taking Institution to a Tier2 financial institution.
Tier2, according to Uganda’s Financial Act, is below the operations of a commercial bank but is above the level of an MDI.
According to Mr Rogers Kakeeto, the head of marketing and business development, the bank is a Tier2 financial institution that performs all duties of a commercial bank apart from foreign exchange operations.
Foreign exchange operations are only operated by commercial bank.
Other banks at the Tier2 level include: Posta Bank and Mercantile Credit Bank.
Opportunity Bank is a member of Opportunity Transformational that started in 1995 as Faulu Uganda but in 2008 rebranded to Opportunity Uganda after it acquired a Tier 2 Financial Institutions license to operate as a regulated credit institution offering a savings platform and offering credit to customers.
Uganda’s banking sector has grown over the years boasting of 24 commercial banks and a number of MDI supported by various money lending and transfer institutions.
Mr Eliot Mwebya, the Bank of Uganda director of communications, told Daily Monitor that Opportunity Uganda was given special clearance to become Opportunity Bank but would be limited to being a savings and a credit giving institution.
He emphasised that the institution would not be allowed to operate current accounts as well as foreign exchange services.