The Uganda Microfinance Regulatory Authority (UMRA) and PostBank Uganda have signed a Memorandum of Understanding (MoU) to digitize the operations of tier IV Microfinance Institutions. This collaboration will leverage PostBank’s innovative Wendi mobile wallet, aiming to empower the last-mile beneficiaries to actively engage in socio-economic ventures that enhance their livelihoods.
This partnership is a groundbreaking milestone in enhancing financial accessibility, particularly for Savings and Credit Cooperatives (SACCOs), Village Savings and Loan Associations (VSLAs), Self-Help Groups, and Non-Deposit Taking Microfinance Institutions (NDT-MFIs).
By transitioning these entities into the digital age, UMRA and PostBank are championing sustainable financial inclusion, especially in remote areas lacking physical banking facilities.
Andrew Kabeera, Executive Director of PostBank, expressed his enthusiasm about this initiative: “With Wendi, we are delighted to empower individuals and groups, especially those underserved by traditional financial institutions, to access secure savings accounts, earn 10% annual interest on daily savings, and conduct various financial transactions.”
He further elaborated on Wendi’s design: “The Wendi mobile wallet was designed by PostBank to offer seamless financial services to underserved and last-mile customers. Users can access, manage, and transact funds efficiently—whether they use smartphones or feature phones.”
Kabeera emphasized the importance of this partnership with UMRA: “The partnership is timely as it will help us boost financial literacy skills and ensure savings groups have access to essential financial services, regardless of their banking affiliation.”
This focus on education is crucial, given that a recent FinScope survey revealed a notable increase in the adoption of SACCOs and Mobile Money services in Uganda since 2018. SACCO usage climbed from 5% to 15%, while Mobile Money surged from 23% to 42%.
Despite this growth, many Ugandans still store money at home due to a lack of confidence in both formal and informal financial service providers.
Edith Tusuubira, Executive Director of UMRA, highlighted the transformative potential of this collaboration: “Leveraging Wendi to digitize savings groups across the country is a great initiative. We thank PostBank for taking this innovative approach as it aligns with Uganda’s National Financial Inclusion Strategy.”
She added that by embracing digital technology, they aim to enhance financial literacy, security, and convenience while fostering economic empowerment.
Tusuubira articulated the challenges faced by informal savings mechanisms: “We are trying to streamline operations as the regulator. The Wendi mobile wallet addresses key challenges such as security risks associated with physical money boxes and inefficient manual processes prone to errors.”
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