Airtel Mobile Commerce Uganda Limited (AMCUL) has announced a partnership with KCB Bank Uganda that is aimed at growing the savings culture in Uganda.
With the Airtel-KCB Super Saver Fixed deposit product, customers can now deposit up to shs5 million on their Airtel-KCB Super Saver account and earn interest of up to 9%.
The customer doesn’t need to have a KCB account but can simply use their Airtel money account to save.
“Today’s growth and utilization of digital financial services has influenced the integration and collaboration between telecoms and bank operators for the mutual benefit of the customer. With such innovations that offer an improved customer value proposition, customers can enjoy real-time financial solutions and conveniently make transactions anytime, anywhere,” said Airtel Mobile Commerce Uganda Limited (AMCUL) Managing Director, Japheth Aritho.
“At AMCUL, our mandate is to offer affordable and borderless transactions in Uganda and across the region via the Airtel Money platform. I, therefore, thank KCB Uganda for accepting to work with us. Thanks to this partnership, customers can save from shs 250,000 up to shs5 million to earn interest rates of up to 9%. The fixed deposit account will consist of 3, 6, and 12-month investment periods so the customer has enough options to choose from and fix their funds while earning interest of 8%, 8.5%, and 9% respectively,” he added.
Officials said premature termination or withdrawing the fixed amount before the agreed-upon tenure will also earn 3%, 3.5%, and 4% per annum, respectively and no transaction fees will be charged for depositing into or withdrawing from the fixed deposit account.
According to the Bank of Uganda 2020 Financial Capability Survey, only 15% of Ugandans save their money in a deposit-taking financial institution, regulated by the Bank of Uganda.
On the other side, 17% save on their phones using mobile money, up to 44% of the people rely on Village Savings and Loans Associations, while 42% resort to savings boxes at home.
“The Bank of Uganda statistics indicate the need for sustained efforts to invest and introduce innovative mobile-banking solutions. Our Airtel-KCB Super Saver fixed deposit product will support individuals and their businesses to save more, earn returns and make future investments,” said Edgar Byamah, the Managing Director, KCB Bank Uganda.
“Digital banking continues to be a game changer in driving digital financial inclusion as demonstrated by the rise in mobile money transactions and increase in the usage of digital solutions over the years. As a solid regional bank, we are always at the forefront of championing such developments in the banking sector and
across the regions.”
According to officials, to access the service, customers will have to dial *185*7*11*1#, choose the fixed
deposit option and follow the prompts respectively.