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KAMPALA, UGANDA: The use of integrated technology is the only way that financial institutions can cut costs eating into their profitability, according to Dr Ruhakana Rugunda, the ICT minister. Speaking at the launch of Finca Uganda’s ATM service on Friday, Dr Rugunda said modern technology based banking is less costly thus banks need to adapt it to guard against unnecessary costs. “It is encouraging that banks are resorting to the use of ICT as reflected in the ATM interswitch service that serves customers using about 90 ATM points spread across the country.
Finca, which has a presence in 21 countries, last week joined the league of financial institutions that use plastic cards to access their accounts through ATM points. The micro deposit taking institution becomes the second after Finance Trust to launch an ATM based service network.
The service will be accessed through Interswitch, an electronic based platform that customers use to transact using over 90 ATM points spread between different banks among them Cairo, Dfcu, Finance Trust, Global Trust, Fina, Opportunity Bank, Orient Bank and UBA. Ms Charlotte Kaheru, the Interswitch East Africa chief executive officer, said the facility will benefit Finca as it will reduce the cost of running banking especially for operating ATM points.
She said the cost of key business infrastructure has been increasing over the years, thus infrastructure sharing, like joining the interbank switch, is apparently becoming more relevant. She said putting up a single ATM point costs more than Shs124 million. However, such costs she added can be reduced through using an interlinked platform.
The Finca Uganda, chief executive officer, Julius Omoding said the move is likely to improve service delivery as well as easing banking for customers. He said: “With this technology we shall be able to improve the quality of services we offer to a range of customers.
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