Centenary Bank appointed NIC Bank’s agency in Uganda
What you need to know:
Corporate banks are resorting to partnerships to serve their customers more conveniently.
Kampala Customers of Kenyan based NIC Bank and its local subsidiary - NC Bank will now be able to transact their business countrywide after Centenary Bank was appointed the institution’s banking agency.
NC Bank managing director John Okullo said its customers are now able to make deposits into their accounts through Centenary Bank branches at no extra costs.
“We are increasing our presence in the high network to facilitate local businesses as well as cross border trade. Because we have one branch, we had to make partnerships with other commercial banks to facilitate collections,” Mr. Okullo said.
Centenary Bank, the country’s largest indigenous bank has more than 60 branches countrywide with assets worth Shs1.1trillion ($425.3 million).
Mr. Okullo said the customers’ money will be reflected in their accounts within one hour upon making deposits.
However, Ms Beatrice Lugalambi, the head of business growth at Centenary Bank, said she could not disclose any information regarding the new arrangement citing confidentiality.
NC Bank’s move to partner with Centenary Bank in Uganda becomes the latest strategy that corporate banks are resorting to in serving their customers with convenience.
In 2007, Citibank Uganda Ltd appointed Postbank Uganda as a banking agency, enabling its customers to make deposits through Postbank network in the country.
The strategic cooperation aimed at improving and broadening access of the banking services by customers of Citibank; optimising resource utilisation of the Postbank outlets.
In Kenya, NIC Bank and Chase Bank’s signed an agreement with Postbank Kenya last year, enabling their customer access banking services in all the 99 Postbank branches.
NIC Bank, which also holds operations in Tanzania, opened shop in Uganda in June last year targeting corporate clients.