Mobile Money Africa

In a bid to increase the penetration of banking services in Uganda, United Bank for Africa (UBA) is set to introduce a banking service that can facilitate transactions via mobile phones.

Mr Joseph Arinaitwe, the UBA Uganda head of Electronic Banking, said in an interview, that the bank will introduce a service that will enable any of their customers in possession of mobile phones, to access financial services offered by the bank, where Uganda’s telecommunication networks reach.

Mr Arinaitwe said the service will be unveiled within the next two to three months.

“We have already done the test and it works. We have also been approved by the Bank of Uganda to carry on the service,” he said.

He said the introduction of the electronic service, which is expected to be branded UBA Mobile Money, will make it unnecessary for the bank’s customers to visit the banking halls for service, unless they need hard cash.
The service will make it possible for UBA customers to convert hard cash on their personal or business accounts into electronic cash (e-cash), to be stored on their virtual accounts. They can then pay their utility bills to the respective service providers.

“What we are trying to do is make the whole banking process cashless. But when you need cash, you go to our agents or branch,” he said on Monday.

The bank will work in partnership with agents who will be authorised to give out cash to customers like the MTN Mobile Money and Zain’s Zap operations.

The innovation, which comes after a year of the banks research, will be in line with the rapid increase in mobile phone usage in Uganda. “Mobile phone penetration is growing and we feel that this should be the channel of banking for every person with a mobile phone,” he said.