Centenary Bank has started identifying and training potential agents to roll out agency banking in Masaka sub-region.
Mid last month, Bank of Uganda permitted commercial banks to begin recruiting third parties, known as ‘Agents’ to transact business on their behalf.
Through agency banking, customers are able to open up bank accounts, withdraw and deposit cash, access account balance, make payments and transfers without going to the bank’s branch.
Mr Charles Kabanda Ssentamu, the financial inclusion manager at Centenary Bank says they have chosen to initiate the model in Masaka sub region, which is found to have higher demands for their banking services compared to other upcountry areas.
“Upon securing clearance from Bank of Uganda about two weeks ago, we chose to begin with Masaka ahead of other regions. Our main intention is to break all barriers for banking services especially in the rural settings,” he explained early in the week while launching the model in Masaka Town.
Mr Kabanda revealed that they are targeting to bring on board at least 50 agents in eight districts during their first year of implementation, who will handle banking services in the different areas.
On matters of connectivity, Mr Kabanda said they already established partnership with telecom companies to use their leverage on mobile banking and digital solutions to support them effectively roll out the banking model.
Mr Michael Nuwagaba, the bank’s head of agency banking and lead trainer of the agents, noted that they now working upon compliance issues with the regulator and to allow the outlets begin operating any time soon.
The requirements include, among others; business registration, having a bank guarantee of at least Shs10m, physical security at the outlet which are supposed to be approved.