Uganda: Postbank enters first tier territory for banks

Kampala, Uganda – The bank, as mandated by law, should no longer be classified as a credit institution but as a deposit-taking financial institution that provides loans for consumption and investment purposes to earn profit.

Senior bank officials told reporters on December 15 in Kampala that they were ready to innovate and come up with new products to compete favorably with other market players.

The bank has a total of 1.2 million customers, but only around 650,000 are classified as active according to Julius Kakeeto, the managing director.

The first level means that PostBank can now offer more services, including the acceptance of sight, sight, savings and term deposits withdrawable by check or otherwise, the provision of overdrafts and short and medium term loans , the provision of foreign exchange facilities and the acceptance and discounting of bills of exchange.

The bank may also provide financial and investment advice, participate in interbank clearing systems, give guarantees, bonds or other forms of collateral, and accept and place third party drafts and promissory notes related to operations in which they participate.

“It means we can offer services on a larger scale,” Kakeeto said.

The license issued by the Central Bank will remain in effect until revoked by the Bank of Uganda.

Kakeeto said that over the past 18 months they have rolled out measures that will strengthen the bank’s capacity, with the new management’s goal being to strengthen PostBank’s foundation.

He said efforts have been put in place, including digital transformations, improved human resources and corporate governance, all of which will improve the customer experience and grow the bank.

“With these changes at the bank, it was inevitable that the institution would maximize its potential and competently compete with aggressive private financial institutions,” Kakeeto said.

He also said that over the past few years they have laid the groundwork for reaching the new milestone.

A rigorous restructuring process gave the institution a competitive advantage with a new board of directors and several top bankers who joined the management team.

In 2020, the bank was also able to achieve a net profit of 10 billion shillings, the highest in the history of the bank.

Management focused on improving risk management, strengthening governance, customer experience, enforcing compliance and starting the bank’s digital journey, in addition to building the capacity of labor.

Its chairman of the board, Andrew Otengo Owiny, has revealed that becoming the first level marks the end of a 13-year journey that began in 2008.

“The Bank owes this milestone to its clients, staff, shareholders and all external stakeholders who have supported this trip,” he said. until PostBank became the country’s leading financial institution. “

He said the bank remains committed to transforming the lives and livelihoods of Ugandans by providing affordable and sustainable financial solutions.

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