What you need to know:
- Mr Sebastian said digital banking will make saving lives easier and faster for Ugandans.
The coordinator Operation Wealth Creation (OWC) at the Ministry of finance Col Ronald Rubare has said digital Co+ banking (cooperative banking) will promote financial inclusion for all people across the country during government planning.
“For the last six years we have been fighting for financial inclusion where everybody can be seen to be part of the financial network whether it’s in the banks, cooperative Saccos, in women and youth organizations where everyone can be seen. At times you cannot be seen because you can be somewhere and you think you’re banking or borrowing from someone and that person is not recognized by government,” he said.
Mr Rubare made the remarks during the tecnostac digitizing SACCO’s, MFI’s and self-help group’s stake holders’ engagement held in Kampala on Friday.
“Government sees organisations, numbers, it wants to plan for people they can see. That’s why they have been struggling when they carry out programmes like the parish development model. You see a whole pillar under three brings about financial inclusion for all but they can’t do it if they can’t see you,” he said.
The director business development at Tecnostac Systems Private limited, Mr Jimmy Sebastian said the digital Co+ Banking targets all kinds of Saccos to come up with interested solutions for Sacco members to connect them to banking institutions,” he said.
“Currently we are at the closing stage of 10 Saccos and will definitely see more joining, which will enable them be part of financial inclusion, financial literacy and be social enablers in Uganda,” he said.
Mr Sebastian said digital banking will make saving lives easier and faster for Ugandans.
“We don’t get into revenue sharing; we only ensure we run the back office to help them integrate. During negotiations we can listen to them and offer technical advice but the agreement is entered between the Saccos and third party,” he said.
The Uganda Microfinance Regulatory Authority (UMRA) manager microfinance institutions in charge of Saccos, Mr Tibs Olikiriza said all Saccos need user friendly, integrated and cost effective digital systems to carry out operations.
“We want Saccos to take up digital systems that interact with the savers, the third party and also give us reports easily as regulators with a single press of a button in a timely manner” he said.
The head of financial services Inter switch East Africa, Mr Shaffic Semakula said digitising sacco operations will enable people access their savings from any part of the country without the need to travel to wait for a particular branch to open.
“There is a missing link, a conception that people want to keep the Saccos within their own docket but with digitization Saccos should become a way of life,” he said.