• Contact Us
  • About Us
  • Advertise
  • Donate
  • Login
Watchdog Uganda
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
Watchdog Uganda
No Result
View All Result

Mobile banking adoption in Uganda hindered by safety and cost worries

Mourice Muhoozi by Mourice Muhoozi
2 years ago
in Business, Finance
5 0
Mobile Money stalls

Mobile Money stalls

ShareTweetSendShare

The rapid global surge in mobile banking adoption has encountered an unexpected hurdle in the pearl of Africa, as Ugandans remain cautiously reluctant to fully embrace this financial revolution.

Despite the convenience and accessibility promised by mobile banking solutions, a significant portion of the Ugandan population continues to grapple with persistent concerns surrounding the safety and cost implications of these innovative services.

A greater number of Ugandans are opting to use mobile banking for withdrawing money from their bank accounts rather than depositing, as reported by service providers.

This revelation was made by key stakeholders in Uganda’s banking sector, during a press conference organised by Uganda Bankers Association (UBA) On August 8th, in Kampala.

This trend will be a key topic of discussion at the upcoming 6th Annual Bankers Conference, that will take place at Serena Hotel Kampala from 14th to 15th August. 

There are several factors contributing to the reluctance to deposit money through mobile phones, including concerns about incomplete transactions and potential financial losses, along with the relatively high transaction costs.

Richard Yego, the Managing Director of MTN Mobile Money Uganda, highlighted during the press conference that last year, approximately Shillings 4 billion was withdrawn from banks to mobile wallets, whereas only Shillings 2.6 billion was deposited from wallets to banks.

Yego also emphasized the significance of the Fintech industry, revealing that MTN alone facilitated electronic transfers totaling Shillings 90 trillion, with Shillings 400 billion in mobile loans issued.

Certain banks impose steep charges, up to Shillings 5,000, for depositing money from a mobile wallet to a bank account, whereas the fee for withdrawals from the bank to the wallet ranges from Shillings 1,000 to 1,700.

Some institutions argue that it’s more financially viable to deposit funds in person or move physical currency between banks. Yego expressed optimism about the forthcoming establishment of a national switch, a process currently in progress, which is anticipated to alleviate transaction costs.

This year’s banking conference revolves around the theme “Trends and Innovations in Fintech: Transforming Banking and Financial Services.” The main objective is to assess Fintech’s emergence and its impact on financial inclusion, as well as the obstacles encountered.

Speaking at the conference, Sarah Arapta, the Chairperson of the Uganda Bankers Association, stated that the conference seeks to determine how Fintech and banking entities can collaborate effectively to enhance financial services.

“This year’s #BankingConf23 will take stock of the contribution that fintech & other players in the financial eco-system including mobile network operators make towards the growth & transformation of the banking sector”

The financial sector experienced rapid growth, particularly with the advent of mobile phone technology in the 2000s, resulting in increased access to formal financial services and penetration into previously underserved regions.

Over the last half-decade, bank accounts have more than doubled to reach 23, as per the Uganda Bankers Association (UBA). Nevertheless, the industry confronts continuous challenges related to electronic financial fraud and cybercrime.

The conference spans two days, with the second day dedicated to training industry professionals, security personnel, cyber experts, and others in related fields. Wilbrod Owor, UBA Executive Director, emphasizes the global nature of fraud and the necessity for a comprehensive approach to tackle it.

UBA is in the process of implementing resolutions from a prior fraud conference and anticipates that measures against fraud will strengthen, including stricter penalties for wrongdoers.

Yego from MTN acknowledges that telecoms are often involved in fraud cases, some of which are perpetrated by common criminals exploiting system vulnerabilities.

A current investigation highlights criminals potentially accessing mobile money account numbers at agents, using transaction information to contact customers with threats or deceitful messages.

As stakeholders across the financial industry strive to address these challenges, the journey towards widespread mobile banking adoption in Uganda remains a complex one.

Balancing the allure of convenience with the necessity of safety and affordability will undoubtedly require innovative solutions, robust cybersecurity measures, and a comprehensive effort to educate and empower the Ugandan population.

Only then can the nation unlock the true potential of mobile banking and usher in a new era of financial inclusion and empowerment.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com

Share1Tweet1SendShare

Related Posts

Business

Pearl of Africa tourism expo 2025 shines at Speke Resort Munyonyo

23rd May 2025 at 21:42
Business

Sudhir’s 2007 Call announced Balaam’s Billionaire Breakthrough

21st May 2025 at 15:26
Wednesday February 26 2025, the ministry of Tourism launched of the highly anticipated “9th edition of the Pearl of Africa Tourism #POATE2025 Expo,an annual flagship event aimed at positioning Uganda as the best tourism destination globally & the #TellYourStoryUg  Campaign.
Business

Pearl of Africa Tourism Expo 2025: A Celebration of Uganda’s Vibrancy at Speke Resort Munyonyo

20th May 2025 at 09:06
Next Post
Airtel Uganda Managing Director Manoj Murali

Airtel Uganda announces plans for stock market listing, expanding investment opportunities

  • Prostitution in Uganda- Courtesy Photo

    10 dangerous hotspots known for prostitutes in Kampala

    1013 shares
    Share 405 Tweet 253
  • Sudhir’s son Rajiv Ruparelia perishes in fatal motor accident 

    49 shares
    Share 20 Tweet 12
  • Has Billionaire Sudhir Ruparelia Replaced Rajiv with Sister Sheena in Managing the Ruparelia Group of Companies?

    19 shares
    Share 8 Tweet 5
  • Why Would Rajiv Ruparelia Be Cremated on Tuesday?

    14 shares
    Share 6 Tweet 4
  • Retired civil servant reaps big from coffee farming, credits President Museveni’s visionary leadership 

    13 shares
    Share 5 Tweet 3
Facebook Twitter

Contact Information

Watchdog Uganda is a portal for solution journalism, trending news plus cutting edge commentaries in the fields of politics, security, business, tourism, entertainment, technology, agriculture, climate change, environment, public health et al. We also give preference to Ugandan community news and topical discussions. The portal also publishes community news and topical discussions.

Email: editorial@watchdoguganda.com
To Advertise:Click here

Latest News

President Museveni celebrates spiritual awakening as churches break from religious sectarianism 

24th May 2025 at 21:34

President Museveni pledges support to Gomba youth and women

24th May 2025 at 21:27

Check out

  • Trending
  • Comments
  • Latest
Minister Muruli Mukasa

LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

24th May 2020 at 10:45
Pregnant woman

Shock as 17-year old boy impregnates his two sisters during Covid-19 lockdown 

17th June 2020 at 08:17
Sudhir Ruparelia has dominated the Uganda rich list for more than a decade

Billionaire Sudhir’s wisdom on how to invest in real estate

0

How a boy’s destiny turned from cotton grower to communications guru

0

President Museveni celebrates spiritual awakening as churches break from religious sectarianism 

24th May 2025 at 21:34

President Museveni pledges support to Gomba youth and women

24th May 2025 at 21:27

© 2025 Watchdog Uganda

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News

© 2025 Watchdog Uganda