The Uganda Microfinance Regulatory Authority (UMRA) and PostBank Uganda have signed a Memorandum of Understanding (MoU) to start collaboration aimed at digitizing the operations of tier four microfinance institutions.
The tier four microfinance institutions including saccos, self-help groups, community based microfinance institution and non- deposit taking microfinance institutions will have their operations digitised through PostBank’s Wendi mobile wallet as one of the ways to drive financial inclusion.
“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 The Wendi mobile wallet was designed by PostBank to offer seamless financial services to underserved and last-mile customers, hence users can access, manage, and transact funds efficiently. And this is both for Smartphone and feature phone users who can be both PostBank Uganda or non – PostBank customers,” said Andrew Kabeera PostBank’s Executive Director
“The partnership with UMRA will help us boost financial literacy skills and ensure savings groups have access to essential financial services, regardless of their banking affiliation.”
A 2023 FinScope survey revealed a sharp increase in the adoption of SACCOs and Mobile Money services in Uganda since 2018.
SACCO usage rose from 5% in 2018 to 15% in 2023, while Mobile Money usage jumped from 23% to 42% over the same period.
Despite this growth, many Ugandans still store money at home, signaling a lack of confidence in both formal and informal financial service providers.
Furthermore, only 2 in 10 Ugandans save electronically, emphasizing the urgent need for
digital solutions like Wendi to bridge the gap in financial inclusion.
Officials from PostBank said Wendi promises to offer secure and convenient financial services to help address these challenges.
The Executive Director of UMRA, Edith Tusuubira made emphasis on the transformative impact
this partnership will have on Uganda’s financial landscape.
“Leveraging Wendi to digitize savings groups across the country is a great initiative and we
thank PostBank for taking this innovative approach because it aligns with Uganda’s National
Financial Inclusion Strategy of bridging the gap of access to financial services for millions of
Ugandans. By embracing digital technology, we will enhance financial literacy, security, and
convenience for our people while fostering economic empowerment,”Tusuubira said.
“Therefore, UMRA commits to continuously support sector players like PostBank who have
introduced services like the Wendi mobile wallet which addresses key challenges faced by
informal savings mechanisms, such as: security risks, including theft or damage to physical
money boxes, difficulty in tracking transactions, member contributions, balances, inefficient
manual processes that are prone to errors, and vulnerability to fraud, among other involved
risks, since we are trying to streamline operations as the regulator.”
