Ugee

Mobile phone banking comes to Uganda

Rural Ugandans will by early next year be able to receive and send money by simply sending a text message instructing a bank to handle the transaction. This follows a partnership between government and Map International that designed a phone product to fast track access to financial services to the rural people. Map International is a US based company that owns and operates multi-dimensional financial service platform that delivers mass-market payment virtual payment solutions linking consumers, banks, merchants and service providers. "This will be a cheaper alternative because Uganda is among the countries with the highest mobile phone penetration in the world," Mr Micheal Landau, the chairman of Map International, said in Kampala on Tuesday. He said Map would enter another partnership with all communication companies to supply affordable multi purpose mobile phones with an in built menu to enable one to access his/her bank account details anytime. Customers will also be issued with biometric identity cards same as ATM cards carrying a customer's bio data. "It will be used in hand mobile data machines also similar to an ATM machine to transact business," Mr Landau said. Initially, the pilot launch in the first quarter of 2008 will be enjoyed by Post Bank Uganda customers but other banks will be free to sign up with Map International at later date. Speaking at a pres briefing in Kampala, the Acting US Ambassador to Uganda, Mr Andrew Chritton, said with the programme, Uganda's banking sector now has the potential to become more competitive than any other in the region. "This a big opportunity in the financial sector to replace a very expensive process of writing cheques," he said. However, he said the success of this programme would depend on good service delivery and development of infrastructure to reach the rural people. Post Bank Managing Stephen Mukweli said this would enhance the performance of the SACCOs and see an increment in deposits and loan funds. "Currently there are about three million Ugandans with mobile phones this is almost equivalent to the number of bank accounts so it links two sectors at once," he said. He said the bank would embark on a massive public sentisation programme especially in rural areas about the new services and products. This comes at a time when government under a phased programme is opening accounts with the bank for over 600,000 employees who it pay Shs6 billion annually in salaries, benefits and pensions. Using the Map system, they will be able to access their funds much faster.

 

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