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94% of our transactions done digitally, says Equity
Equity Bank says that only 6 percent of its transactions are conducted inside banking halls. Photo / File
What you need to know:
- Whereas 94 percent of transactions are now conducted through digital channels the value of transactions, which are done in banking halls remains high
Equity Bank has indicated that only 6 percent of its transactions are conducted inside its banking halls.
The details signal a massive shift to new channels of financial transaction, among which include agency banking, digital, mobile and internet banking, among others.
While presenting the bank’s financial results for the period ended December 2022, Mr Anthony M Kituuka, the Equity Bank managing director, said technology had enabled them to conduct 94 percent of their transactions outside their branches (halls).
However, the value of transactions conducted inside banking remains higher at Shs694b compared to digital channels.
The shift, he said, had, therefore, necessitated realignment of the bank’s financial network and services through agency and digital banking system.
During the period, Mr Kituuka indicated Equity Bank’s agency banking network had grown to more than 8,000 agents from 7,727 agents in 2021, transacting more than Shs13b every quarter.
Therefore, he said, the bank will continue to invest in digital banking to enable it reach more unbanked Ugandans.
Equity Bank was the first financial institution in Uganda to operate an agency banking platform.
It operates a standalone platform, away from the shared agent platform operated by Agent Banking Company, which has more than 20,487 agents shared between or more than 20 banks.
Mr Kituuka also indicated that the growth in transactions outside banking had been boosted by other digital banking channels, among which included Eazzy stock financing.
A number of banks, including Stanbic, have previously indicated that the shift in banking has impacted banking hall traffic, which for most has fallen by above 80 percent.
Therefore, banks have had to invest in technology to leverage the shift as well navigate new product offerings to compete with new financial services such as mobile money that have experienced exponential growth in the last 10 years.
During the period to December 2022, Equity Bank registered a 21 percent growth in deposits from Shs2.2 trillion in 2021 to Shs2.7 trillion, while total assets grew by 20 percent from Shs2.8 trillion to 3.3 trillion in 2022. Loans and advances grew by 6 percent from Shs1.5 trillion to Shs1.6 trillion.
General performance
During the period to December 2022, Equity posted a 21 percent growth in deposits from Shs2.2 trillion to Shs2.7 trillion, while assets grew by 20 percent from Shs2.8 trillion to 3.3 trillion in 2022. Loans and advances grew by 6 percent from Shs1.5 trillion to Shs1.6 trillion.
