Dr Tumubweine Twinemanzi, the Bank of Uganda’s Executive Director for Supervision has urged local banks to understand what motivates people to move or change service providers adding that studies show that 68% of people stay with service providers who care for them.
“If you empower the consumer, it means that you are putting them first and giving them the latitude or wherewithal to know that they can realize their potential and only then will you be able to make the kind of money you need as a financial institution,” said Twinemanzi who was delivering a keynote speech at a conference where Executives (CEOs and Top Executives) of African Financial Institutions and Regulators were invited to discuss the benefits of values-based banking in growing African economies and how to implement and spread this unique approach to sustainable banking.
The conference was organized by the Global Alliance for Banking on Values and Centenary Bank. #globalalliancefor bankingonvalues or #GABV2018.
Dr Twinemanzi encouraged commercial banks in Uganda to join GABV because it puts people before profit.
“Bank of Uganda three years ago, launched the Financial Consumer Empowerment guidelines not just to protect the consumer but also for empowering them,” he stated before applauding Centenary Bank for being exemplary and being the first Ugandan Bank in the country to join GABV.
The Global Alliance for Banking on Values (GABV) is an international network of banking leaders from 54 member banks, committed to advancing positive change in the banking sector.
Centenary Bank hosted the first conference in Africa, at which the Bank of Uganda called upon banks in Uganda to embrace value-based banking and join the Global Alliance for Banking on Values.
Prof. Chris Ogbechie, Strategic Management, Lagos Business School and former Chairman of Diamond Bank Plc said it was a good thing that banks are now focusing on all the aspects of business including; bottom line, return on investment, return on equity, share price dividends as well as how they are touching the community and impacting the planet.
“Whereas it is time for the African lions to emerge and roar, there are multiple layer issues in driving this, including low numbers, where only 20% of adults in Africa have access to financial services, affordable credit is major binding constraint to the industrial sector especially SMEs and informal sector among others,” said Prof. Ogbechie.
Prof. Ogbechie held that value-based banking can help realize 9 out of 17 SDGs; Financial inclusion, Access to credit, promotion of healthy living in banks and customers and communities, investing in education, healthcare and industrial sectors.
Centenary Bank Managing Director, Fabian Kasi, said the bank’s decision to join GABV was majorly because much of what the bank believed in was in sync with banking on values and promised tremendous benefits.
Some of the benefits he said included; advancement in leadership and innovation skills, staff empowerment, support with strategic direction on qualitative and quantitative elements that can be implemented with particular identifiable results, as well as continuous improvement and support.
Dr Marcos Eguiguren, the Alliance’s Executive Director said that the Alliance was created following the 2008 Financial Crisis that hit some of the world’s hugest banks and shook the global economy.
He added that it is founded on the principles of service to the real economy, a common denominator of its members who were not affected by the crisis. #globalalliancefor bankingonvalues or #GABV2018
Dr. Marcos commented that, “our intention is to be a role model for other banks through what we do and how we do it,” adding that, “through our own example, we position community lending at the top, where we set our assets on an expedition of improving the lives of our communities through positive lending, eradicating poverty, planet cleanliness, environmental issues, social inclusion among other key issues.
BY PAUL TENTENA