MICROCAPITAL BRIEF: Centenary Bank, Opportunity Uganda, PostBank Partner With Uptime Solutions to Rollout Mobile Banking Vans to Rural Areas

Several financial institutions in Uganda including Centenary Bank, a Uganda-based commercial bank specializing in rural finance; Opportunity Uganda, a subsidiary of US-based nonprofit Opportunity International; and PostBank Uganda, a government-owned non-bank credit institution, reportedly have partnered with Uptime Solutions Limited, a Uganda-based for-profit company providing technology solutions for financial services and enterprise development, to deploy mobile banking vans to extend financial services to more residents, mainly in rural trading centers. Miiro Tonny, Uptime’s managing director, was quoted as saying, “The market reality is that people want bank services closer. That is what we are doing. It is important that government comes up with more policies that call for more inclusive bank services provided by financial institutions as there is demand.”

As of 2013, Uptime reported six clients in banking services and four in hospitality, health, media and consulting. As of 2011, Centenary reported total assets of UGX 944 billion (USD 348 million) and a loan portfolio of UGX 515 billion (USD 190 million). According to data provided to US-based nonprofit Microfinance Information Exchange (MIX), Centenary had deposits of USD 282 million as of the same year. According to MIX, Opportunity Uganda reported total assets of USD 21.5 million, a gross loan portfolio of USD 14 million and deposits of USD 4.5 million as of September 30, 2012. As of 2012, PostBank reported deposits of UGX 41 billion (USD 15 million) and a loan portfolio of UGX 20 billion (USD 7 million).

By Lena Phillips, Research Associate

About Uptime Solutions Limited
Established in 2007, Uptime is a Uganda-based for-profit company providing information communication technology solutions for financial services and enterprise development. As of 2013, Uptime reported having ten clients comprising six in banking services and the others in hospitality, health, media and consulting.

About Opportunity International
Based in the United States, Opportunity International is a nonprofit organization that was founded in 1971. Opportunity International provides small business loans, savings, insurance and training to approximately 2 million poor people in 24 countries in Africa, Asia, South America and Eastern Europe. As of July 31, 2012, Opportunity International had 4 million clients and a gross loan portfolio of USD 515 million. As of December 31, 2011, Opportunity International reported total assets of USD 207 million.

About Centenary Bank
Established in 1983 in Uganda as a credit trust, Centenary Bank was registered as a commercial bank in 1993 and is licensed by the Bank of Uganda, the country’s central bank, as of 2013. Centenary works mainly in microfinance and extending financial services to poor people in rural areas. As of 2013, the bank reported having 1.3 million customers, 58 branches and 130 automated teller machines nationwide. As of 2011, Centenary reported total assets of UGX 944 billion (USD 348 million), a loan portfolio of UGX 515 billion (USD 190 million), return on assets of 5.5 percent and return on equity of 35.1 percent. According to data provided to US-based nonprofit Microfinance Information Exchange, Centenary had deposits of USD 282 million as of the same year.

About PostBank Uganda Limited
PostBank Uganda was founded in 1926 as part of the country’s post office, and it is owned by the Ugandan government as of 2013. In 1998 it was incorporated as a limited liability company. It is regulated by the Bank of Uganda, the country’s central bank, which designates PostBank a non-bank credit institution. As of 2012, PostBank reported 270,000 customers, 31 branches and 13 mobile locations nationwide. As of the same year, it reported deposits of UGX 41 billion (USD 15 million) and a loan portfolio of UGX 20 billion (USD 7 million).

Sources and Additional Resources:

Monitor.co.ug Article, “Spearheading rural finance services using mobile vans,” http://www.monitor.co.ug/Business/Prosper/Spearheading-rural-finance-services-using-mobile-vans/-/688616/1710994/-/7tw262z/-/index.html

MicroCapital.org Article, 29 January 2013: “MICROCAPITAL BRIEF: Mobile Money Agents in Uganda Call for Improvements to Network Infrastructure,” https://www.microcapital.org/microcapital-brief-mobile-money-agents-in-uganda-call-for-improvements-to-network-infrastructure/

MicroCapital.org Article, 21 June 2011: “MICROCAPITAL BRIEF: After Farmers Reject bank Cards, China’s Harbin Bank ‘Cash Caravans’ Bring Microfinance to Villagers,” https://www.microcapital.org/microcapital-brief-after-farmers-reject-bank-cards-china%E2%80%99s-harbin-bank-%E2%80%9Ccash-caravans%E2%80%9D-bring-microfinance-to-villagers/

MicroCapital.org Article, 22 July 2009: “MICROCAPITAL.ORG STORY: Centenary Bank of Uganda to Increase Microfinance Lending Within Agricultural Sector,” https://www.microcapital.org/microcapitalorg-story-centenary-bank-of-uganda-to-increase-microfinance-lending-within-agriculture-sector/

MicroCapital Universe Profile: Uptime Solutions Uganda, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Uptime+Solutions+Limited

MicroCapital Universe Profile: Opportunity International, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Opportunity+International

MicroCapital Universe Profile: Centenary Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Centenary+Bank

MicroCapital Universe Profile: PostBank Uganda Limited, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=PostBank+Uganda+Limited

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