PostBank Uganda a financial institution that is committed to empowering lives and livelihoods has today officially announced its ascension to tier one status after receiving a license from the Bank of Uganda.
The bank, as mandated by the law, shall no longer be categorized as a credit institution but as a deposit-taking financial institution that gives loans for the purposes of consumption and investment to make a profit.
This means that Postbank can now offer the following services;
- Acceptance of call, demand, savings, and time deposits withdrawable by cheque or otherwise
- Provision of overdrafts and short to medium term loans
- Provision of foreign exchange facilities: Acceptance and discounting of bills of exchange
- Provision of financial and investment advice
- Participation in inter-bank clearing systems
- Give guarantees, bonds, or other forms of collateral, and accept and place third-party drafts and promisory notes connected with operations in which they take part.
The license issued by the Central Bank shall remain in force until revoked by the Bank of Uganda. PostBank shall effective December 2021, operates as a commercial bank (Tier One).
While addressing the media, PostBank’s Managing Director, Julius Kakeeto, said that the bank had over the last 18 months rolled out measures that would strengthen PostBank’s capacity.
“With the new management’s goal to strengthen PostBank’s foundation, efforts have been put into digital transformations that will improve customer experience,” he said, adding that, “With these changes at the bank, it was inevitable that the institution would optimize its potential and ably compete with the aggressive privately owned financial institutions.”
Mr. Kakeeto also emphasized that “What we have been doing is building the foundation - a solid foundation, because, with a very solid foundation, you can do so many things including competitiveness and growth.”
A rigorous restructuring process gave the institution a competitive edge with a new Board of Directors and several top-class bankers joining the senior management team.
The bank was in 2020, also able to make a net profit of UGX. 10Bn, which is the highest in the bank’s history.
Management has focused on improving risk management, strengthening governance, customer experience, enforcing compliance and kickstarting the bank’s digital journey, in addition to capacity building for the workforce.
Speaking at the press conference, Board Chairman PostBank, 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 customers, staff, shareholders and all the external stakeholders who have supported this journey.”
“I would like to pledge the Board of Directors’ continued support, to give vision and work with our stakeholders, until PostBank becomes the top financial institution in the country.”
PostBank remains committed to transforming the lives and livelihoods of Ugandans through offering affordable and sustainable financial solutions.