By KT Reporter
Bank of Uganda has hailed the innovative mobile and online lending products introduced by financial institutions, noting their significant contribution to financial deepening and inclusion.
This innovation began in 2016 when NCBA Bank—then operating as Commercial Bank of Africa—partnered with MTN Uganda to launch the MoKash product. At the time, access to formal credit was limited to the small proportion of Ugandans with bank accounts.
Today, over 50 percent of Ugandans are eligible to borrow from a bank through mobile phone-based platforms. While commissioning the new NCBA head office and Nakasero Branch in Kampala, David Kalyango, Director of Supervision at the Bank of Uganda, said the financial services sector is evolving rapidly, driven by shifting customer expectations, technological advancements, and regulatory changes.
He commended NCBA for its agility and commitment to embracing innovation, particularly through digital platforms aimed at improving operational efficiency.
“Your embrace of digital innovation—mobile and internet banking, and digital credit products such as MoKash in partnership with MTN Uganda—further affirms your readiness for the future of banking,” Kalyango said.
He reaffirmed the central bank’s commitment to financial sector stability through sound regulatory policies, intended to deliver better and more convenient services to the public.
He cited recent initiatives such as the Financial Institutions (Corporate Governance) Regulations 2024, the Internal Liquidity Assessment Process (ILAAP) Guidelines, the Cybersecurity Risk Management Guidelines, and the Environmental, Social, and Governance (ESG) Framework launched in 2023.
He added that the Bank is also investing in the digital transformation of supervisory processes, with stakeholder consultations expected by June 2025.
NCBA currently operates five branches in the Greater Kampala Metropolitan Area, supported by five ATMs, online banking services, and participation in the agent banking platform. As of March 2024, the bank’s total assets stood at Shs 963 billion, with customer deposits at Shs 654 billion.
Kalyango emphasized the need for financial institutions to meet the new minimum capital requirements to ensure the sector’s resilience. “I encourage NCBA to align with these reforms, particularly the revised minimum paid-up capital requirements, to build resilience against shocks and ensure full regulatory compliance,” he said.
He expressed confidence in NCBA’s stability, citing the strength of its regional ownership. “As part of the wider NCBA regional group, your bank is well-placed to serve a diverse clientele—including local, regional, and multinational corporations, as well as SMEs in trade, manufacturing, and agriculture.
This new location offers a unique opportunity to deepen engagement with the business community and contribute meaningfully to Uganda’s economic growth,” he added. Todate, MoKash has disbursed Shs 2.8 trillion in loans, with an average of 500,000 users accessing credit monthly. The platform now has over 14 million active users.
NCBA Uganda’s CEO, Mr. Mark Muyobo, reported strong performance in 2024. Net loans and advances increased by 18 percent to Shs 298 billion. Customer deposits grew by 15 percent to Shs 654 billion, while profit before tax rose by 40 percent to Shs 46 billion.
Muyobo noted that the relocation to Twed Towers and the refurbishment of the Nakasero Branch reflect NCBA’s commitment to enhancing the customer experience. He added that NCBA plans to invest in a revamped mobile banking app and an upgraded Corporate and Investment Banking platform in 2025.
“These are part of broader efforts to support Uganda’s growing digital economy and enhance customer convenience,” Kalyango added-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
