Emmanuel Tumusiime-Mutebile: Providing affordable banking services
in Uganda
Speech by Mr Emmanuel Tumusiime-Mutebile, Governor of the Bank of Uganda, at the
official opening of Orient Bank Limited, Acacia Mall Branch, Kampala, 3 April 2014.
* * *
The Shareholders of Orient Bank Limited;
Members of the Board of Directors;
Senior Management and Staff;
Invited Guests in your respective capacities;
Ladies and Gentlemen.
It is an honour and pleasure for me to join you today at the official opening of Orient Bank's
Acacia Mall Branch. Let me begin by congratulating the Shareholders, Directors and Senior
Management of Orient Bank for the commendable job they have done in implementing their
branch expansion programme, thereby bringing banking services nearer to the people.
During the past twenty years of operation in Uganda, Orient Bank has expanded its service
delivery channels and outlets. The branch being opened today here at the Acacia Mall brings
the total number to twenty.
Ladies and Gentlemen, this occasion not only marks success for Orient Bank in increasing
its presence in the banking industry, but also lends support to the Bank of Uganda's financial
inclusion agenda, which aims to extend access to affordable financial services more widely
among the population. Extending access to financial services will only be possible on a large
scale if banks can overcome the cost barriers which are a major obstacle to the wider
provision of financial services. Therefore, I would like take this opportunity to reiterate my
view that banks in Uganda must prioritise improving efficiency. Operating costs as a share of
total assets are too high. It will only be possible to provide more affordable financial services
to Ugandans when operating costs are brought down. One of the ways in which costs can be
lowered is through the introduction of new technologies for delivering financial services, such
as information technology.
Orient Bank has been at the forefront of introducing innovative technologies and products to
the Ugandan banking market. It was the pioneer of the Point of Sale technology in Uganda
with its benefits of promoting a cashless economy. In addition, the bank remains the sole
issuer of American Express cards in Uganda. I also understand that the bank will soon
launch the "CHIP and PIN" Visa cards, an innovation that will enhance the security features
of the bank's existing Visa card product. It is however, important to note that increased
innovation comes with increased risks. I therefore urge Orient Bank to design robust risk
management processes and internal controls to mitigate the risks inherent in technological
advancement.
Turning to today's event, the new Acacia Mall is in a very strategic location, as illustrated by
the number of banks that have established outlets at this Mall. The "Sapphire Banking
Lounge" at this branch is designed to offer Orient Bank's customers a first class banking
experience. I also have no doubt that Orient Bank's existing menu of products will appeal to
the customers of this branch and that the bank will continue to focus on providing quality
services for its customers.
The Bank of Uganda, as Uganda's monetary and regulatory authority, remains committed to
ensuring price stability and a sound financial system. We shall continue to conduct vigorous
financial sector regulation and supervision to ensure that all banks are well capitalised and
that they have robust risk management frameworks.
With these remarks, I once again commend the Shareholders, the Board of Directors and
Senior Management of Orient Bank for extending their branch network to bring banking
services nearer to the people.
It is now my honour and pleasure to declare Orient Bank's Branch Acacia Mall Kampala
officially open.
Thank you for listening.
Emmanuel Tumusiime Mutebile (Prof.)
Governor, Bank of Uganda