Airtel Uganda is preparing to invest her customer’s savings in treasury bills and bonds run by the government.
However,they require permission from the Bank of Uganda in order to push through with this as per the provisions of the National Payment Systems (NPS) Act which was passed in 2002.
Basing on Manoj Murali, the Managing Director, Airtel Uganda, the telecommunication company is an equivalent of a payment bank and hence this shall draw multiple benefits to the company.
“Now that we are a payments bank, we can operate a savings bank where customers can open savings accounts. This licence also allows us invest savings for customers as banks do but specifically in government bonds and treasuries,” he further informs.
Additionally, he says that this is a great step for Uganda since we are moving towards attaining a financial sector that includes a savings bank.
“This is a big step for Uganda since it will see a lot of financial inclusion coming into the sector with this savings bank.”
After the Bank of Uganda confirmation, the telecommunication network’s next step will be to select a potential bank that can be trusted with the safety of the money and returns to customer’s savings.
The telecommunication company also aims at partnering with different insurance company so as to distribute their insurance products to customers country wide.
This new development shall put Airtel Uganda at the same level with MTN Uganda which is working in partnership with Metropolitan Life Uganda to distribute aYo Send with Care health insurance products.
Airtel excited about winning the 2021 Fintech innovation award, Andrew Rugamba
MTN Set To Run To Court To Appeal Shs 50.7 Billion On License Ruling
Airtel and KCB Uganda Launch joint partner to launch low cost mobile loans and savings
“We added 400+ base stations in last 2 years and plan another 300+ in the coming quarters,” he said.
The Managing Director went on to inform that the company aims at increasing the number of towers countrywide from 2,116 to 2,539 by March 22nd of next year. And despite Covid-19, the company is struggling to get back on it’s feet.