WSBI member and Scale2Save partner Centenary Bank launches paperless account opening technology
Scale2Save Campaign
Micro savings, maximum impact.
WSBI member and Scale2Save partner Centenary Bank launches paperless account opening technology.
Digital-based CenteXpress savings account extends financial services to millions of unbanked Ugandans through social networks to increase financial inclusion.
Scale2Save project update in Uganda
WSBI member and Scale2Save partner Centenary Bank launches paperless account opening technology.
Digital-based CenteXpress savings account extends financial services to millions of unbanked Ugandans through social networks to increase financial inclusion.
BRUSSELS, 23 June 2020 – Scale2Save project partner Centenary Bank, the largest Commercial Microfinance Bank in Uganda, launched recently a paperless bank account opening service – dubbed CenteXpress – intended to serve the unbanked Ugandan population during Covid-19 and beyond.
Launched at the head office in Kampala, CenteXpress comes as Uganda faces the Covid-19 pandemic. Deploying and using appropriate solutions like a CenteXpress account puts people in the right direction to propel personal savings and business continuity. The CenteXpress account will build on initiatives already in place by the bank to extend financial services to people at all levels.
Commenting on the launch, Centenary Bank, Managing Director Fabian Kasi said, “It comes at a time when all sectors of the economy including banking and financial services are undergoing a new wave of change, which has warranted further investment in digitally driven solutions to our current gaps and challenges as a country.”
“According to the 2018 Financial Sector Deepening Uganda report on Banking the number of Ugandans without bank accounts or some form of structured and legal financial services currently stands at 89% or 16.5 million of the 18.6 million adult population of Uganda, an indication that there’s need to continuously develop banking services that meet customer’s needs across all age groups.”
How it works: Providing a digital account…instantly
The rising demand for the banking industry to adopt solutions that offer suitable banking experiences anytime and anywhere has inspired the integration of technology to respond with appropriate solutions. Centenary Bank does this through CenteXpress by issuing an instant bank account opened for people by any one of its customers. The offer aims to extend banking services to a customer’s family, friends, relatives, colleagues, and acquaintances, among others that are unbanked and yet need to use banking services. Again, it gives an opportunity to employ people to open accounts for others while earning a commission on each account.
Beatrice Lugalambi, General Manager Corporate Communications and Marketing, said: “A potential customer does not need to visit a bank branch to get a CenteXpress account opened for them, because any existing customer can open the account for anyone in short simple steps and in less than five minutes. No paper work is required during the account opening process for CenteXpress.” This mobile savings account is intended to build the momentum of savings among our people especially now that Covid-19 has challenged us with the need to survive such challenges.
“For the existing customer to open a CenteXpress for another person, all they need to do is confirm that the person’s phone number is registered. The digital link then uses the CenteMobile App to capture all the necessary new customer information on the digital form provided, takes a photo of their National ID, then enters the phone number and address of the new customer. The Digital Link then deposits the minimum opening balance of Ushs.3,000 on the new account while the bank system credits the Digital Link’s account with Ushs.2,000 as commission for opening the account. The new client will receive SMS notifications with new pin and account details to confirm completion of the process and activation of the account.”
The account presents access to numerous benefits and banking services including, 24/7 access to one’s account using CenteMobile, Free balance inquiry, Withdrawals of up to 2 million shilling per day from all the bank’s digitally driven channels including CenteMobile, CenteAgent and the account is purely phone based.
Scale2Save and Centenary Bank
WSBI and Centenary Bank signed in late 2019 a memorandum of understanding for a new Scale2Save project to help small-scale savings work in Uganda. Signed during a ceremony on 18 October in Washington, D.C., the memorandum outlined two projects, on being CenteXpress, introduces financial incentives for existing customers to on-board new ones into the no-frills account. The project taps into and measures the influence and impact made by friends and family to boost uptake and active use of banks and their services within the retail and mass market. A related project also contained in the memorandum was to introduce and test a ‘No-Frills’ basic mobile-phone-operated savings account specifically designed for the low-income people. Centenary looks to launch and test the offer via CenteMobile – the bank’s digital channel.
Centenary Bank Managing Director Fabian Kasi said at the time of the memorandum signing that: “The mobile account will be scaled up to 187,500 customers by its Cente banking agent network, sales representatives and staff during the pilot phase.”
The no-frills account pilot aims in the medium- to long-term to establish a “gateway-to-banking” product for low-income Ugandans. People who start with the account, set for a pilot phase in Central and Western regions of the country, can graduate to a regular savings account. From there, they can eventually gain access to the full suite of banking products, including credit. The project is especially important for rural communities to flourish.
Commenting at the time on the initiative and support from WSBI under the Scale2Save programme, MoU signatory and WSBI Managing Director Chris De Noose added: “Centenary Bank is taking an innovative, multi-pronged approach to address the need for viable small-scale savings. They also look to test shared agency infrastructure with Finca Uganda, another Scale2Save partner.”
About Centenary Bank
Centenary Bank is Uganda’s leading commercial microfinance bank, serving more than 1.8 million consumers, a quarter of the country’s total banking population. It also has a growing network of 186 ATMs, 74 branches, and over 400 Cente Agents across the country. Centenary Bank started in 1985 with two main purposes: serve the rural poor and make a meaningful contribution to the socio-economic development of Uganda. In 1993, it transitioned to Centenary Rural Development Bank Limited and licensed as a full-service commercial bank. The bank aims to be Uganda’s best provider of financial services, especially microfinance. Centenary Bank began in 1983 as a credit trust of the Uganda National Lay Apostolate. Its mission is “To provide appropriate financial services, especially microfinance to all people, in a sustainable manner and in accordance with the law.”
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Centenary Bank in Uganda signs on to Scale2Save
Scale2Save Campaign
Micro savings, maximum impact.
Will launch ‘no-frills’ account in Uganda. - Two-pronged project will also tap into family & friends to boost take up, account use
WSBI and Centenary Bank signed recently a memorandum of understanding for a new Scale2Save project to help small-scale savings work in Uganda.
Signed during a ceremony on 18 October in Washington, D.C., the memorandum outlines projects to introduce and test in Uganda a ‘No-Frills’ basic mobile-phone-operated savings account specifically designed for the low-income people. Centenary looks to launch and test the offer via CenteMobile – the bank’s digital channel.
Centenary Bank Managing Director Fabian Kasi (pictured above, at left), who signed the memorandum, noted: “The mobile account will be scaled up to 187,500 customers by its Cente banking agent network, sales representatives and staff during the pilot phase”.
The no-frills account pilot aims in the medium- to long-term to establish a “gateway-to-banking” product for low-income Ugandans. People who start with the account, set for a pilot phase in Central and Western regions of the country, can graduate to a regular savings account. From there, they can eventually gain access to the full suite of banking products, including credit. The project is especially important for rural communities to flourish.
The second innovation will introduce financial incentives for existing customers to on-board new ones into the no-frills account. The project taps into and measures the influence and impact made by friends and family to boost uptake and active use of banks and their services within the retail and mass market. A new bank account will be instantly generated at branch and agent level. It then debits the introducer’s account and credits the newly introduced account holder with the equivalent amount.
Commenting on the initiative and support from WSBI under the Scale2Save programme, MoU signatory and WSBI Managing Director Chris De Noose added: “Centenary Bank is taking an innovative, multi-pronged approach to address the need for viable small-scale savings. They also look to test shared agency infrastructure with Finca Uganda, another Scale2Save partner.”
About Centenary Bank
Centenary Bank is Uganda’s leading commercial microfinance bank, serving more than 1.4 million consumers, employing over 2,700 staff and holding an asset base of UGX 2.706.3 Billion (US$733 million)as of 31 December 2017. It also has a growing network of 176 ATMs, 70 branches, and over 400 Cente Agents across the country. Centenary Bank started in 1985 with two main purposes: serve the rural poor and make a meaningful contribution to the socio-economic development of Uganda. In 1993, it transitioned to Centenary Rural Development Bank Limited and licensed as a full-service commercial bank. The bank aims to be Uganda’s best provider of financial services, especially microfinance. Centenary Bank began in 1983 as a credit trust of the Uganda National Lay Apostolate.
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Covid-19 & microfinance sector
Scale2Save Campaign
Micro savings, maximum impact.
WSBI joins new global coalition to address pandemic effects on base-of-the-pyramid lives, livelihoods; institutions that serve them.
WSBI joins new global coalition to address pandemic effects on base-of-the-pyramid lives, livelihoods; institutions that serve them.
>> Read: Info on coalition in FinDev Gatway and
>> Learn more: Center for Financial Inclusion
BRUSSELS, 30 June 2020 – WSBI announced recently that it joined a new coalition with other industry actors during the wake of Covid-19 to support the bottom-of-the-pyramid people and the institutions that serve them.
Designed to raise the profile of microfinance organisations as critical players in the response to the unfolding crisis, the coalition led by FINCA Impact Finance began under the umbrella of the Partnership for Responsible Financial Inclusion (PRFI), housed at the Center for Financial Inclusion. Quickly extended far beyond PRFI membership. Members of the coalition include Scale2Save partner microfinance institutions Advans, BRAC and FINCA at group level. The trio join organisations such as AccessHolding, Accion, VisionFund International and Women’s World Banking in the coalition.
WSBI’s ScaleSave Programme Director Weselina Angelow commented: “Joining the coalition helps raise our voice jointly with other industry stakeholders. By supporting coalition aims outlined in the calls for action to support the microfinance industry, the group can help further progress policy debate around the sector with policymakers, investors and interested organisations like funders. The coalition gives a boost to more-tailored support to Scale 2Save MFI partners as well as WSBI MFI members.”
Coalition lines up with WSBI, Scale2Save scope, reach, aims
Collectively, these coalition partners serve more than 80 million active customers, 69 percent of whom women. Like other partners, WSBI microfinance members deliver financial services and strengthen their infrastructure through digital innovation to broaden financial inclusion, especially for the poor. WSBI members operate in some 80 countries, including in hard-to-reach rural and low-population areas.
WSBI, Scale2Save and MFIs : Joined up to help people at bottom of pyramid
WSBI places much emphasis on building capabilities and strengthening institutions that are best placed to serve the underserved and unbanked. It’s Scale2Save programme – a partnership between WSBI and Mastercard Foundation – looks to help establish the viability of small-scale savings, building resilience among people and communities, and focusing on people and their financial and life-skills journey. Like other coalition partners, WSBI’s Scale2Save programme places emphasis on helping especially vulnerable women, young people and farmers to make best use of digital innovations. Those advances help people gain safe and secure access to loans, government relief, more affordable money transfers but also better savings and in some instances micro-insurance products– a gateway to a broader set of financial services for poorer segments of the population.
Innovation indispensable to provide last-mile financial services
As millions of livelihoods hit by Covid-19 struggle, they seek critical access to credit, savings and other financial tools – increasingly through digital means, oftentimes serving those without formal employment prospects. Financial services provided by MFIs help people to operate small businesses frequently more resilient than the formal sector in the face of severe economic shocks like coronavirus, and which will be even more needed in a post-pandemic world where the economic hit slashes employment levels. Microfinance provides plays a critical role in not only mitigating the economic impact of the crisis, but also to accelerate recovery from it.
She concluded: “WSBI joins the coalition to focus on what is needed to support and protect those who use MFIs both now and tomorrow. By joining the coalition WSBI and its members join with high-impact coalition partners to make our voice heard. The coalition has therefore invited policymakers, donors and investors, who have received respective calls to action, which state a case for why each should support MFIs and their clients during the Covid-19 pandemic.”
>> Learn more about the coalition at FinDev Gatway and Center for Financial Inclusion website.
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Scale2Save, Barid Cash sign MoU
Scale2Save Campaign
Micro savings, maximum impact.
BRUSSELS, 7 May 2020 – WSBI and payment institution Barid Cash signed recently a memorandum of understanding to conduct research to better meet the needs of Moroccan informal savings groups.
The two-part study will include quantitative and qualitative research to understand the concept of “Daret” – a traditional way for people in Morocco to organise and form an informal savings groups, also called “tontine” in other parts of French-speaking Africa. Data collected assess Daret’s potential within the country’s population size, based on gender and age segments, as well as appetite for a digital version of Daret proposed by a financial service provider.
Barid Cash Managing Director M. Benanane said: “We need to understand better and analyse more carefully the people who use traditional “Daret”. We want to find out what drives them, detect specific preferences and behaviours among socio-professional categories.”
Tracking awareness levels, attitudes
Researchers will seek to learn about the awareness levels and attitudes of Moroccans, especially towards savings as well as how people use savings for moments in their lives, such as daily needs like food, medicine and school fees.
Barid Cash will conduct qualitative fieldwork via focus groups and interviews, sampling from a population that ranges in age from 18 to 70 with monthly revenue of DH 2000 to 20,000 (~US$200 to 2,000). More specifically five main groups will form the sample group, including those living in both large cities and rural areas and places. They include: Informal savings groups, low-income and irregular-income, banked and unbanked populations, including women; students; small-scale traders and craftsmen, small show owners and self-employed entrepreneurs.
A report detailing the study results expected in 2020 will feed into strategic and operational decision-making by Barid Cash in its quest to launch a “Daret” digitalisation project.
Digitising Daret
Digitising Daret processes means tapping into the existing mobile payment ecosystem and creating a new offering for an unexplored market at national level. Women and young people could gain much from digitising this traditional, community-based form of savings. Opening a basic account to access a digital tontine platform will thereby provide a gateway to a whole array of financial services beyond savings.
Weselina Angelow, programme director for WSBI’s Scale2Save, concluded: “Customer-oriented market research efforts like this help us understand better aspects of Daret. Digitising it could bring new life into the tradition-rich savings group format and allows us to drive further use of this saving method to get more people to save, and beyond.
Notes to editors:
About Scale2Save:
Scale2Save is a partnership between WSBI and Mastercard Foundation to establish the viability of small-scale savings in six African countries. The six-year programme aims for 1 million more people banked in those countries through projects using innovative models. Learn more about Scale2Save online and @Scale2Save on Twitter.
About Barid Cash:
Barid Cash is a subsidiary of Al Barid Bank, Barid al-Maghrib group, created in 2014 to offer Moroccans a new local service, becoming a benchmark in terms of national and international money transfer and cash services. Its status subsequently progressed towards financial activity thanks to obtaining in 2018 the licence of Bank Al Maghrib for a Payment Institution. Barid Cash then embarked, like its parent company, on a dynamic of financial inclusion, by joining the national mobile payment project “PMN”. Barid Cash is now riding the technology wave and offers an alternative account opening offer to the traditional offer based on fundamentals which makes it more accessible and flexible as well as new means of payment (mobile payment via M- Wallet Barid Pay, Fissa3 electronic payment card) with the novelty of merchant payment allowing the latter to diversify its means of payment acceptance thus creating an ecosystem of M-payment. Learn more about Barid Cash at www.baridcash.ma
About WSBI:
The World Savings and Retail Banking Institute (WSBI) represents the interests of 6,760 savings and retail banks globally, with total assets of $16 trillion and serving some 1.7 billion customers in nearly 80 countries (as of 2018). Founded in 1924, the institute focuses on international regulatory issues that affect the savings and retail banking industry. WSBI supports the achievement of sustainable, inclusive, balanced growth and job creation, whether in industrialised or less developed countries. Learn more at www.wsbi-esbg.org.
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WSBI, BRAC Uganda Bank Ltd join forces
Scale2Save Campaign
Micro savings, maximum impact.
To digitise low-balance savings through Scale2Save. Project to help low-income earners in rural, remote areas, on boarding 164,000 people
WSBI, BRAC Uganda Bank Ltd join forces. To digitise low-balance savings through Scale2Save.
Project to help low-income earners in rural, remote areas, on boarding 164,000 people
WSBI and BRAC Uganda Bank Ltd (BUBL) look to widen financial inclusion in Uganda by digitising low-balance savings accounts.
Outlined in a memorandum of understanding signed recently by both organisations under WSBI’s Scale2Save programme – a partnership between WSBI and Mastercard Foundation to help establish the viability of small-balance savings accounts – BUBL looks to develop a Wise Save savings product. The Scale2Save-supported project will provide accounts to approximately 164,000 people at the bottom of the pyramid, especially women earning low incomes, in rural and remote areas.
The Managing Director of BRAC Uganda Bank, Jimmy Adiga said: “Evolving in early 2019 from a microfinance institution to a Tier II bank, BRAC Uganda Bank Ltd now positions itself to not only provide greater value to the hundreds of thousands of clients already served, but also to achieve greater financial inclusion in Uganda. The new banking license now enables us to offer Ugandans; savings accounts, money transfer services, deposit-linked insurance and other financial services besides credit products.”
The newly established bank will aim to support low income earners and micro depositors that have been financially excluded from the formal banking system, to gain further access to finance. This will be achieved through implementing easier means to transact, simplified financial literacy and digital education, end-to-end digitisation of the Wise Save savings product and its channels, right from initial on boarding to transacting. On top of a vast branch network consisting of 32 branches and 131 satellite offices spread across Uganda, the bank plans to deploy roving agency banking services, offering banking services within the community. Similar to “susu” collections in West Africa, the offer comes at no extra cost to customers. They also plan to offer their Wise Save account bundled with micro deposit insurance cover for every account holder.
The bank will also work with the research team from its sister organisation, BRAC International to test ultra-poor graduation – particularly in trying to disprove existing theory that the ultra-poor cannot possibly be motivated to save.
WSBI Managing Director Chris De Noose concluded: “BRAC Uganda Bank sees a huge upside to digitise the Wise Save account. By doing so, the low-income segment can access a savings product tied to a mobile wallet for greater convenience when accessing financial services. That means harnessing new technology while configuring BUBL’s agency banking and mobile banking platforms.”
Contact:
Afema Robert, communications, BUBL, +256-772120305, afema.robert@brac.net
Notes to editor:
About BRAC Uganda Bank Ltd (BUBL)
BRAC Uganda Bank Ltd launched on 25 April 2019 and attained its current status of a Tier II Credit institution following a successful background as the leading Microfinance services provider in Uganda. The Bank operates 32 regulated branches and 131 satellite offices covering 84 districts in Uganda targeting Micro, Small and Medium Entrepreneurs. BRAC Uganda Bank Ltd promotes financial inclusion by extending financial services to unserved and underserved populations, especially women and youth as well as people living in poverty in rural areas. The Bank is operationally and financially self-sustaining with over 220,000 active customers and a loan book in excess of Uganda shillings 178 billion.
About WSBI
The World Savings and Retail Banking Institute (WSBI) represents the interests of 6,760 savings and retail banks globally, with total assets of $16 trillion and serving some 1.7 billion customers in nearly 80 countries (as of 2018). Founded in 1924, the institute focuses on international regulatory issues that affect the savings and retail banking industry. WSBI supports the achievement of sustainable, inclusive, balanced growth and job creation, whether in industrialised or less developed countries. Learn more at www.wsbi-esbg.org.
About the Mastercard Foundation
The Mastercard Foundation seeks a world where everyone has the opportunity to learn and prosper. The Foundation’s work is guided by its mission to advance learning and promote financial inclusion for people living in poverty. One of the largest foundations in the world, it works almost exclusively in Africa. It was created in 2006 by Mastercard International and operates independently under the governance of its own Board of Directors. The Foundation has offices in Toronto, Canada and in Kigali, Rwanda. Visit www.mastercardfdn.org for more information and to sign up for the Foundation’s newsletter. Follow the Foundation at @MastercardFdn on Twitter
