Stanbic bank targets Saccos, village saving groups

Stanbic Bank Uganda has announced a new value proposition aimed at refreshing the operations for savings and credit cooperative organizations (Saccos) and village savings and loans Associations (VSLAs) across Uganda.

In a notice dated June 17, Emma Mugisha, Stanbic bank executive director, said the move will help make Saccos and VSLAs more appealing to their members and other stakeholders by giving greater focus on three key areas namely, lending, investments and savings.

Mugisha said the new proposition shows the bank’s unwavering commitment to supporting economic growth in the country through supporting various critical sectors.

“Many Ugandans have joined savings and loans groups in order to source funding for their income-generating projects,” she said.

She said that the Stanbic proposition will enable Saccos and VSLAs to access loans so that they in turn can lend to their members and create opportunities for growth of their businesses. It will also support financial inclusion drives in the country.

The bank plans to reach out to Saccos registered by the ministry of Trade, Industry and Cooperatives as well as VSLAs regulated by the ministry of Gender, Labour and Social Development.

Beneficiaries will be offered an opportunity to open a Sacco account which features free cash and cheque deposits, free transfers into the account from members and free cash withdrawals.

Other benefits of the account include, free online banking, no monthly management fees, tiered interest paid on balances above Shs 10 million, financial literacy sessions for both management and selected members, as well as participation in capacity building programmes at the Stanbic business incubator.

In addition, the bank is quoting an affordable 12.5 per cent interest rate for an unsecured term loan of up to Shs 200 million with a tenor of not more than 12 months. The other option is a secured term loan of up to Shs 1.5 billion with a tenor of between 12 and 36 months maximum.

As a benefit, the bank will offer insurance cover for Saccos in different categories, depending on their need. Meanwhile, through a platform dubbed Mobis, a microfinance platform used by Saccos (developed by Ensibuuko), the bank will provide core banking capabilities including savings account management, credit and cash management, back-office accounting and financial reporting, deposit/withdrawals from the Sacco account and more.

In addition, the bank will serve Saccos through Flexipay wallet – an electronic wallet designed to meet the needs of customers using smart (App) and feature (USSD) mobile phones combined with agent, merchant and ATM channels.

This wallet will serve as a one-stop transactional gateway with the phone aiding deposits, withdrawals at cash ATMs and agents.

© 2016 Observer Media Ltd