United Bank of Africa (UBA) has introduced Red Shop Agent Banking that will enable its customers to access banking services without having to move and look for nearer bank branches.
Red Shop Agent banking is the delivery of financial services outside conventional bank branches, where a licensed deposit-taking financial institution contracts (bank) a third party operator (agent) to provide a range of financial services on its behalf.
The agent could be an established retail shop, a permanent mobile money agent, a petrol station and hardware shop, among others.
As a way of boosting its service delivery, the Red Shop Agent Banking outlets will allow users to easily withdraw and deposit money as well as check for their account balance among others.
This means that banks are now at any anyone’s reach, both unbanked customers and those with existing bank accounts.
People living in remote areas will also get a chance to access formal banking services through the various outlets located in those areas.
A large part of Ugandans is unbanked not because they do not want to have bank accounts but because they do not have access to banking services since banks over consider the opening of bank branches in particular areas.
Furthermore, others especially those in rural areas prefer to keep their money in their custody or on their sim cards rather than having to travel long distances in search for the nearest bank branch.
This will be minimized since Red Shops are expected to enable provide agent banking services to existing customers of all the UBA member banks as well as bring onboard the unbanked, unserved and underserved segments of the population for financial services.
Appropriately, the platform is will help in bringing a big percentage of the country’s informal sector into the financial system where monetary policy and targeted interventions can be directed.
United Bank for Africa (UBA) is a leading pan-African financial services group headquartered in Nigeria. It is one of Africa’s best and most resilient banking Groups with operations in 20 African countries and offices in three global financial centres: London, Paris and New York.
Operating in Africa since 1949, UBA operates in Nigeria, Ghana, Benin Republic, Côte d’Ivoire, Burkina Faso, Guinea, Chad, Cameroon, Kenya, Gabon, Tanzania, Zambia, Uganda, Liberia, Sierra-Leone, Mozambique, Senegal, Congo DR, Congo Brazzaville and Mali.
It took over the assets and liabilities of the British and French Bank Limited (BFB) and was incorporated as a limited liability company on 23 February 1961 under the Compliance Ordinance (Cap 37) 1922.
By John Dalton Kigozi