The fourth Uganda Banking Sector Report 2021, summitBANKING21, gives a deep dive into the impact of the Coronavirus pandemic on Uganda’s banking sector. As a result of the pandemic, banks have made digital transformation core to their strategic imperatives as they seek to deliver customer convenience at the lowest cost in this era of banking 4.x.

Why a deep dive analysis of the banking sector?

Monetizing bank digital initiatives for scale and convenience enablers remain key agenda items for the board and EXCO.”

Published financial reports lack context and perspective. It is like walking in darkness. At Summit Consulting Ltd, we use published annual reports for a comparative analysis to put a spotlight on the performance of different financial institutions. This promotes transparency in the industry and gets the respective industry leaders to face reality. It is our belief that our report helps create a strong need for change in terms of effective strategy and its execution, innovation, and digital transformation.

We believe by putting the banking sector players on the pedestal — providing deep insights helps create competitiveness, increase the need for innovation, and contribute to a strong banking sector at both industry and individual financial institution levels.

summitBANKING21 report provides a mile-deep analysis into the banking industry with rare insights for policymakers, directors, bankers, and customers on how to win. The analysis shows more banks shifting into investment in securities as a risk management strategy amidst the pandemic since retail and corporate lending reduced due to the slowdown in the business activities following the economic shutdown measures.

The private sector is slowly being left to the devices of money lenders, as banks seek survival elsewhere putting a spotlight on the regulator, who has instead preferred to raise the minimum paid-up capital requirements to Ugx.150 bn from Ugx. 25 bn for commercial banks, to Ugx. 25 bn from Ugx. 1 bn for credit institutions, and to Ugx. 10 bn from Ugx. 500 mn for MDIs. Some few banks have remained true to their calling, providing affordable finance, to the lower and middle-class segments as part of financial deepening initiatives. These banks are at the forefront of innovation as they must transform into lean and agile financial institutions to win at scale while managing the brick and motor channels to lower costs.

In the following pages, find the leading banks, the reasons for their success and the dominant business models.

Managing the cost to income, jaws ratio, the contribution of non-interest income (specifically non-funded income) to the total revenue and monetizing bank digital initiatives for scale and convenience enablers remain key agenda items for the board and EXCO.

For outsourced business intelligence and data analytics services, strategy, and projects execution support, contact Mr Strategy on strategy@summitcl.com or +256 782 610 333. Enjoy the report.

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