PostBank Uganda, a financial institution committed to strengthening lives and livelihoods, today officially announced its first tier status after receiving a license from the Bank of Uganda.
The bank, as prescribed by law, is no longer qualified as a credit institution but as a deposit-taking financial institution that grants loans for consumption and investment purposes for profit.
This means that Postbank can now offer the following services;
- Acceptance of sight, sight, savings and term deposits withdrawable by check or otherwise
- Provision of short and medium term overdrafts and loans
- Provision of foreign exchange facilities: Acceptance and discount of bills of exchange
- Provision of financial and investment advice
- Participation in interbank clearing systems
- Give guarantees, bonds or other forms of security, and accept and place drafts and promissory notes from third parties relating to transactions in which they participate.
The license issued by the Central Bank will remain in effect until revoked by the Bank of Uganda. PostBank will come into effect in December 2021 and will operate as a commercial bank (Tier One).
Speaking to the media, PostBank chief executive Julius Kakeeto said that over the past 18 months the bank has rolled out measures that will strengthen PostBank’s capacity.
“With the goal of the new management to strengthen the foundations of PostBank, efforts have been devoted to digital transformations that will improve the customer experience,” he said, adding that “With these changes to the bank It was inevitable that the institution would maximize its potential and skillfully compete with aggressive private financial institutions.
Mr. Kakeeto also pointed out that “What we have done is lay the foundation – a solid foundation, because with a very solid foundation you can do so much, including competitiveness and growth.”
A rigorous restructuring process gave the institution a competitive advantage with a new board of directors and several top bankers who joined the management team.
The bank was in 2020 also able to make a net profit from UGX. 10 billion, which is the highest in the history of the bank.
Management focused on improving risk management, strengthening governance, customer experience, enforcing compliance and starting the bank’s digital journey, in addition to building the capacity of labor.
Speaking at the press conference, PostBank Chairman of the Board, Andrew Otengo Owiny, revealed that this marks the end of a 13-year journey that began in 2008.
“The Bank owes this milestone to its clients, staff, shareholders and all external stakeholders who have supported this journey. “
“I want to ensure the continued support of the board of directors, to give vision and to work with our stakeholders, until PostBank becomes the number one financial institution in the country. “
PostBank remains committed to transforming the lives and livelihoods of Ugandans by providing affordable and sustainable financial solutions.