Kampala- After being granted a licence by Bank of Uganda, Finance Trust Bank, formerly a Micro Finance Deposit-Taking Institution, officially launches operations as a commercial bank today.
Deposit-taking institution is an institution which is licensed to receive deposits from private individuals and to pay interest on it.
The institution’s transformation came from what the management attributed to customer demands to have the institution upgrade to the next level—commercial bank.
“Customer demands prompted us to upgrade to a Tier 1 status (commercial bank) to ensure that we could satisfactorily meet their pressing needs,” the managing director, Ms Annet Nakawunde Mulindwa, said in an interview.
Industry analysts say commercial bank has much wider options and responsibilities that customers are always looking for, however such added obligations calls for due diligence, an area that the new commercial bank must be wary of if it is going to avoid related misfortunes.
Despite the transition, the bank primary customers will remain the women.
The founder members of the Bank had a vision of empowering the disadvantaged women out of poverty. And that will remain the case even after the bank’s transition.
But this does not mean that other clients such the men and the youth and will not be attended to.
The transition of Finance Trust to a commercial bank, brings the number of fully-fledged commercial banks to 25.