Bank of Uganda (BOU) Director National Payment System, Mackay Aomu has applauded Brac Microfinance upon its transformation into a fully fledged bank after fulfilling all the requirements.
He made the remarks while presiding over the launch party of BRAC Uganda Bank Limited at Kampala Serena Hotel on Thursday.
Aomu said that Brac Uganda Bank Limited comes in at the right time when good things and reforms have taken place in the country’s financial sector.
“Initially the use of the word bank was a preserve to only commercial banks but the reforms provide that as long as a financial institution gets a license from Bank of Uganda,” he said.
The amendments to Financial Institutions Act, 2016 brought in new expanded roles which are very good for Brac since they can now enjoy full benefits like a commercial bank, he said.
“The license is coming at a good time, you can do agent banking, you can have partnerships with issuers of electronic money; you come at a time when the sector is positioned for a new direction of growth,” Aomu said.
The CEO BRAC Uganda Bank Limited, Jimmy Adiga said appreciated Bank of Uganda and government for the opportunity they have rendered to them to grow into a bank after 13 years of operation.
Adiga said that BRAC the largest microfinance provider in Uganda has now transformed as a Tier 2 CREDIT Institution (CI) to broaden the range of financial services to Uganda’s low-income communities.
BRAC started its micro finance program in Uganda in 2006 and has grown its footprint to 163 branches across 84 districts with more than 200, 000 clients.
“As part of its commitment to ensuring greater financial inclusion especially for marginalized women in rural and low-income communities. BRAC has been pursuing a change in its regulatory status that would allow it to expand the scope of its financial services,” Adiga said.
He added that the transformation will enable BRAC Uganda Bank Ltd to offer savings accounts, money transfer, insurance and other financial services in addition to its existing credit products to the people of Uganda.