Mbiire urges banks to optimize opportunities in the informal sector

Business -->
Mbiire urges banks to optimize opportunities in the informal sector
Caption not available

Renown entrepreneur, Charles Mbiire has advised banks to tap into Uganda’s large informal sector, which he identified as key to economic growth.

Mbiire, made the call as NCBA bank celebrated a commendable financial performance from 2024 with a customer appreciation dinner at the Kampala Serena Hotel.

The event highlighted the bank’s dedication to its clients and also saw significant insights shared by Mbiire, the Chairman of the MTN Uganda Board, who urged banks to tap into the country’s vast informal sector.

Drawing from MTN’s experience as the largest taxpayer in Uganda, he shared how the telecom giant succeeded by recognizing the informal economy’s potential.

“When MTN was starting, we convinced South Africa to bring a base station here, despite initial resistance based on World Bank and IMF figures at the time. We reminded them that the Ugandan economy is 70% informal. On the first day, we registered more customers than anticipated for five years,” Mbiire said.

He explained that as banks look for new avenues of growth through new products and services, the informal sector represents a substantial, yet largely untapped market that could significantly enhance the financial inclusion and economic wellbeing of millions of Ugandans.

According to Mark Muyobo, CEO of NCBA Uganda, the event provided a platform to recognize customer's contributions and share recent achievements.

“We are deeply thankful for your continued support and trust. We eagerly anticipate achieving even greater milestones together,” he said.

The NCBA Group executive team from Kenya was in attendance, led by Group Managing Director, John Gachora.

Expressing appreciation for their clients’ support, Gachora stated, “Our customers are the bedrock of our operations, and this evening serves as a testament to their loyalty, resilience, and trust in our services.”

Last year, NCBA Bank reported a net profit of Shs27 billion, marking a significant 17% increase from the previous year's performance.

This growth was supported by a surge in customer deposits, which rose to Shs567 billion from Shs491 billion in the preceding year.

This performance was attributed to NCBA’s strategic focus on fostering a high-performance culture and leveraging the performance of its digital lending arm, Mokash.

In his final remarks, Mbiire advised banks to invest in projects that empower people to increase their income and well-being, urging a stronger collaboration between banks and telecoms.

“Technology empowers us to become a global network. Telecoms are progressively becoming banks and banks are progressively becoming telecoms. He noted that we are not optimizing that advantage and instead overlapping their duplicated functions,” he noted.

“With advancements in Artificial Intelligence, he emphasized the need for banks to optimize the opportunities presented by telecoms.” he concluded.

Reader's Comments

RELATED ARTICLES

LATEST STORIES

SMEs call for expansion of digital capacity
business By Kenneth Kazibwe
14 hours ago
SMEs call for expansion of digital capacity
Buikwe residents demand RDC's removal
uncategorized By Herbert Sseryazi
14 hours ago
Buikwe residents demand RDC's removal
Kyaliwajjala truck disengaged and towed away
top-stories By Jacobs Seaman Odongo
14 hours ago
Kyaliwajjala truck disengaged and towed away
Gerald Kasaato is new NSSF deputy managing director
top-stories By Samuel Muhimba
15 hours ago
Gerald Kasaato is new NSSF deputy managing director