An insightful presentation by Obopay on banking and mobile scenario in Uganda.

1. Banking in Uganda

2. Understanding the Basics
Traditional
Mobile Users Mobile Banking
Banks
• Banking for the
• Banking Model • No of Mobile Unbanked
Users
• Gaps in the Model • User-friendly
• Mobile Technology
• Banked percentage Penetration
of the Population • Reducing
Expenses
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3. Banking Model: Simplified
• They are authorized to hold checking, savings and time-deposit accounts for
individuals and institutions in local as well as International currencies.
Commercial • They are also authorized to buy and sell foreign exchange.
Banks
• They are authorized to take customer deposits and to establish savings
accounts.
• They are also authorized to make collateralized and non-collateralized loans to
Credit and savings and non-savings customers.
Finance
companies
• They are allowed to take deposits from customers in the form of savings
accounts.
Microfinance
Deposit- • MDIs are not authorized to offer checking accounts or to trade in foreign currency.
taking
Institutions
Source: Wikipedia
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4. Banking in Uganda: Fact File
• About 79% of Ugandans transfer their money
through relatives or taxis, while 13% use
mobile money.
• Total population holding accounts in banks is
4 million, or 33 per cent of the 12 million who
are bankable.
• The number of commercial bank branches
have risen to 455.
Mobiles have become the easiest way to
exchange money
Source: Mobile Money Wikipedia Africa Uganda business
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5. Mobile Connectivity
Total Subscribers: 12 million.
33-40 SIM cards for every 100
people.
Population Penetration: 38.4%
Source: Budde
ihub
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6. The Need for Mobile Banking
Uganda largely has a cash based economy
and 8 in 10 of those engaged in money
transfers, send or receive it in cash.
Apart from Western Union and
Moneygram, there are no competitive offers
by local banks for person to person cash
transfers.
The majority of Ugandans give
‘consumption’ or ‘meeting household needs’
as well as ‘emergencies’ like burial as the
main reason for saving.
Source: Mobile Money

7. The Need for Mobile Banking
Commercial banks on the other
hand, design savings products that require
high, minimum and operating balance.
Customers who want to access money
beyond such limits suffer a cash penalty.
These limitations plus additional fees on
otherwise normal banking transactions like
account closing and reactivation make most
bank products un-competitive
Source: Mobile Money

8. Bringing it all Together
Consumer Linkages
• Universal • Eco-system approach
• Ubiquitous • Direct integrations
• UI • Inter-operable
Platform
• High Performing
GTM
• Efficient
• Investment in branding, distribution
• Global
and operations
• Strategic partnerships
• Appetite to stay the course
Mass Market Offerings Drive Volume/Profitability Create Largest/Network Effect
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9. Thank You
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