To reduce the cost of accessing the National Social Security Fund (NSSF) services in the country, the fund has entered in partnership with dfcu bank to provide services to its members from their locations using the agency banking system instead of going to the fund branches.
According to NSSF, transaction charges for Shs10,000 to Shs50,000 will cost about Shs900, which a customer pays in addition to the amount they are contributing. The maximum transaction charges is as low as shs7, 000 for amounts above Shs4 million.
Agent banking services, enables financial institutions to enter into the digital financing space to drive financial inclusion and increase access to financial/banking services to the general public at a lower cost which is convenient.
Based on the framework that was signed last week at NSSF head office dfcu will provide its bank agents to facilitate the NSSF transactions countrywide while the Agent Banking Company provides the technology that links all bank agents countrywide
The move is meant to enable NSSF members to make their social security transactions at the nearest agent in their neighborhood without visiting the Fund offices.
However, officials clarified that for now, members can only be able to submit their NSSF contributions at the 300 dfcu agent locations, but in the near future, the agents will provide other NSSF services like employer and individual or employee registrations.
The other NSSF collection channels for contributions available to customers include the E-collections Portal that allows employers to remit their employees’ contributions directly to their NSSF accounts through the Bank, the Mobile Money Platform for contributions payment by the Fund’s Voluntary savers, the NSSF Go App and NSSF Payway.
While unveiling the innovation at Workers House, Mr Richard Byarugaba NSSF Managing director said it is part of the Fund’s channels that will further ease access to their services for its members.
“We have a branch network of 19 branches serving over 2 million customers. With this service, it means that NSSF Customers don’t need to travel long distances to access our offices, but can make transactions at the nearest bank agent at flexible working hours,” he said during the virtual press conference to make the signing ceremony.
“In addition, the service is expected to reduce the Fund’s operation and administrative costs especially in establishment of temporary service centers where it doesn’t have a footprint,” he said.
The Managing director of dfcu, Mr Matthias Katamba, dfcu said the service is in line with their strategy to increase financial inclusion in the country.
“We are proud to be the first bank to partner with NSSF on this front. Adding social security transactions to our list of financial services through the agency banking model, gives us an opportunity to further extend more financial services, more conveniently, to our customers, the under banked or unbanked population. Partnerships such as this one with NSSF are testament to our commitment on delivering on dfcu’s brand promise of making more possible,” he said.
Speaking at the same function the Agent Bank Company (ABC Uganda Ltd Chief Executive Officer, Richard Yego said: “We are happy to add another service to the Shared Agent Banking platform and ultimately supporting agents earn more from their businesses. This interoperable technology platform is safe, quick and convenient and we pledge to ensure the selected agents for the service adhere to the confidentiality clauses in this partnership in order to safeguard the NSSF member data.”