Almost 90% of the total adult population in the Lango sub region do not have bank accounts. In a report from the Financial Sector Deepening (FSDU), they say that banking and the state of financial inclusion in Uganda aren’t where they should be.
It also said that the reasons why the unbanked didn’t use banking services were because they thought banking services were too expensive, were too far away from where they lived, or couldn’t keep the minimum balance required by banks.
To bridge this gap, PostBank Uganda, in partnership with the Uganda National Chamber of Commerce and Industry (UNCCI) Lira Branch, organised a financial literacy training for small and medium businesses in Lira district today. The training was meant to help more than 100 members of the business community get low-cost banking services.
The training, called “Empowering unbanked small and medium business merchants to access affordable banking services,” is part of the Central Bank’s plan to make more people in the country have access to banking.
While speaking to the media, Stephen Luwaga, PostBank Branch Manager-Lira, said that it is important for players in the banking sector to leverage the national agenda that seeks to make Ugandans understand the importance of banking, which in turn drives economic growth.
Financial literacy is our number one priority. Many Ugandans remain unbanked, perhaps because they have not understood the need. It’s our job to help them see how important it is for them to use financial services, he said. He said that the training will be a big help in Lira and Uganda as a whole.
Luwaga also said that businesses should rely on well-structured banks and systems that help them get the most out of their money when they need it to grow and make money.
Koli Mercy, a participant at the financial literacy training, remarked that, “I have learnt a lot about good savings culture, financial records, and why I should make informed financial decisions for the growth of my business.” Thank you, PostBank, for enlightening me. I am encouraged to bank with you because of all the knowledge and skills I have acquired today.
Sam Atul, the Mayor of Lira City, applauded PostBank and UNCCI for organising the insightful training. We want a productive society and people who know the value of money. With all the skills shared here today, I believe that Lira is on the road to being one of the most enterprising cities in the country, “he said, adding that “I urge PostBank and the other partners, the Uganda National Chamber of Commerce & Industry, URSB, and URA, to conduct more of these trainings so that we can have an informed and thriving business community.”
Thomas Eregu, the Chief Executive Officer (CEO) of the Chamber of Commerce & Industry Lira branch, pledged UNCCI support to see the business community grow. “The Uganda National Chamber of Commerce and Industry believes in a cooperative approach – building relationships and leveraging partnerships that help the business community to succeed.
This financial literacy training is an example of that. We thank PostBank for wholly coming onboard and delivering this impactful training. ”
All participants were awarded with certificates.
We have built capacity to grow with our customers. The bank has built products that allow businesspeople to expand without much pressure, “Luwaga concluded.