Growth in agency banking signals shift from banking halls
Profits due to Agent Banking Company grew to Shs36.3b from Shs348.2m due to rapid growth in agency banking. Photo / File
What you need to know:
- A number of banks, including Stanbic, have previously reported a reduction in banking hall traffic and massive growth in agency banking
Agent Banking Company, which provides a shared platform through which commercial banks conducts agency banking, registered massive profit growth for the period ended December 2022, signaling a shift from banking halls to other channels of banking.
A number of banks, including Stanbic, have previously reported a reduction in banking hall traffic and massive growth in agency banking.
In details contained in the Agent Banking Company financial report, the company reported that it had registered an impressive growth in profits to Shs36.3b from Shs348.2m in 2021 while total assets increased by 621.6m to Shs15.6b from Shs14.9b.
The Agent Banking Company was established in 2017 by the Uganda Banker’s Association to provide a shared platform through which commercial banks could conduct agency banking.
During the period ended December 2022, the Agent Banking Company recorded an increase in income to Shs3.4b from Shs3.16b, while right of use of assets increased to Shs511.7b from just Shs67.01m 2021 due to an exponential increase in the number of users.
Agent banking is one of the new innovations that are slowly revolutionising the banking sector.
During the period, total expenditure, however, rose to shs3.3b from Shs2.81b while total equity and liabilities stood at Shs15.61b up from Shs14.9b in 2021.
Borrowing for the period was Shs73.32m while share capital remained at Shs1b. Shareholders’ funds pending allotment stood at Shs13.18b the same level as last year.
