Issued by: WMC Africa
Uganda’s leading commercial bank, Stanbic Bank, has intensified its financial inclusion agenda to leave no one behind on the country’s journey to middle income status.
The pledge was made on Wednesday in Namayingo District, Eastern Uganda, when the bank launched a new initiative aimed at enabling Parish Development Model (PDM) Savings and Credit Cooperative Organisations (saccos) to access their money with ease.
The intervention is in response to the endless frustrations of PDM beneficiaries, who have consistently cited the challenges of lengthy processes to access funds, long journeys, account requirements and overcrowded banks, among others.
In an effort to provide a solution to these problems, Stanbic Bank has introduced and distributed 100 FlexiPay integrated smartphones to PDM-verified saccos. The smartphones will benefit saccos in Kapchorwa, Bukwo, Tororo, Mbale, Kwen, Iganga, Busia, Mayuge, and Namayingo districts.
Speaking on behalf of Stanbic Bank’s chief executive officer, Anne Jjuuko, John Tumwine, Stanbic’s head of public sector banking, said the initiative would be rolled out across the country to facilitate government’s efforts to bring 39 per cent of Ugandans into the cash economy.
“The objective of the smartphones is not only to give back to the PDM saccos who bank with us, but also to build the digital capacity of the groups and increase their efficiency by using FlexiPay to manage their transactions with Sacco members.
Mr Tumwine added that FlexiPay will enable PDM saccos to improve accountability, bookkeeping, and transparency in members’ transactions.
“In this particular campaign, over 500 PDM saccos that bank with Stanbic across the country will receive the devices. We are doing this because it falls under our purpose of ‘Uganda is our home, we are driving its growth’. It is in our interest to share this journey with everyone,” he said.
Speaking on behalf of the guest of honour, Lukia Isanga Nakadama, the 3rd Deputy Prime Minister, The Namayingo LCV chairman Robert Sanya commended Stanbic for championing the move to digitise PDM money operations, citing that the public appreciates the bank’s impactful interventions in making Uganda a better place.
He said the removal of physical cash distribution from the circuit will save the government from unnecessary delays and corruption that had begun to eat into the initiative at an early stage.
“I want to call upon all district leaders and Resident District Commissioners (RDCs) to keenly monitor the activities of all the people in the money chain so that it reaches the last person. Stanbic has played its part, the monitoring role is ours, and we have PDM as a vehicle to bring the 39 per cent of the poor Ugandans into the money economy,” Mr Sanya said.
Irene Muwanguzi, the deputy enterprise director of the Parish Development Model secretariat, said that Stanbic Bank’s initiative has given hope to Ugandans and the government at large that the programme will not fail as some people had started claiming.
She said PDM aims at socio-economic transformation by moving 39% of households (about 3.5 million people) from subsistence to cash economy.
Ms Muwanguzi revealed that over a trillion Ugandan shillings had been allocated to saccos so far, and that the government would allocate more.
“We are confident that the PDM will ultimately contribute to Uganda Vision 2040, which envisages the transformation of Ugandan society from a peasant society to a modern and prosperous country. In addition, the third National Development Plan prioritises inclusive growth, employment and sustainable household wealth creation. And now, with partners like Stanbic Bank on board, we see nothing but success,” said Ms Muwanguzi.
Richard Othieno, a PDM sacco beneficiary from Kigulu Island, said the initiative had saved some of them from the burden and risk of carrying cash.
“I know people who have been robbed and others who have even misused the money because it was cash. People had never held a million in their hands before, and they ended up misusing it because of the excitement. Having access to our money on our mobile phones saves us a lot of trouble,” said Mr Othieno.
He added that his sacco chose to bank with Stanbic not because they were expecting mobile phone support, but because they were assured of getting their money due to the availability of more bank branches in the region compared to other banks.
Jackie Abwol, the Stanbic Bank Flexi Pay Manager, said the platform is a comprehensive portal that supports both internet and USSD code (*291#) transactions.
“The benefit for our people is that FlexiPay goes beyond PDM money transactions. The same app can be used to pay bills such as electricity, water, and TV subscriptions free of charge. Basically, FlexiPay is an all-in-one digital solution that allows you to live free by making financial transactions convenient, safe, fast, secure, affordable and easy,” Ms Abwol said.
