NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, June 24, 2015

The explosion of mobile phone usage, internet data, and other technologies has expanded rapidly into traditionally underserved markets and customer segments, changing the way people transact and communicate.

Ugandan banks seem to have realised the threat as more of them are partnering telecoms to swiftly roll out mobile banking products to boost their customer base and increase revenue streams.

Bank of Africa, for example, recently launched its first mobile banking app dubbed ’Tap Tap’, which allows its customers access their accounts and withdraw cash across all the banks with whom it has partnered on the Inter-switch platform, and selected mobile money outlets across the country.

Similarly, one can pay utility bills such as electricity, water, DStv/GOtv, school fees, and money transfers, among others. This means that their mobile money accounts will no longer be just about money transfer. Instead, they will become virtual bank accounts.

According to Claver Serumaga, the general manager, business development, at Bank of Africa, mobile banking is poised to offer more sophisticated banking services, which can make a difference in people’s lives.