A couple of months ago when I decided to join africanews.com, I was tasked to present a business article that would be the bench mark for my membership. Although I had no account of sorts in any bank here, I decided to write about the banking system here in Kampala and the “bad” policies that were hindering the peasants from saving even when we are told by the literate and” successful” in life that its only through savings that one can succeed.

My main contention then was that, why ask for many requirements from a farmer who wants to keep his/her money with you. Records are good and necessary. But for most of our African society it’s still a long way to go which needs to delicately and patiently be waited on. It’s a process that needs sensitization on process. What do I mean here!!!

Before, people were asked numerous requirements on top of a certain opening fee in order to open up an account in a bank here. And these requirements included documents like; a letter of introduction from your local area concil.Which is only got through a fee of not less than five thousand Uganda shillings. The other requirement was two passport photographys.These cost UGX 5,000 to have. Last of the basic needs was an opening up fee of not less than UGX 10,000.Among the above three, the later was always available to the would be clients, but were scared to open an account because the first two were “had” to get from the relevant authorities in time. This was because of many reasons. But I would sum it all in two words; BEAUREACRACY & CORRUPTION. Some banks were even asking for many more other requirements. And my argument then was; why don’t these banks form a mechanism that would allow them to receive money and open up accounts for these wanting customers then start on the other processes like getting their data their!!

I personally had failed on many occasions to open up an account because I lucked someone to second me as a refferre.And this someone had to have an account in the bank that I wanted to do business with. And this was/is a very disturbing requirement to meet. Many here hardly know of someone was has a bank account (it’s taken as a private matter).And even when you know one, not many are willing to sign for people as seconders.So to me these were unjust requirements that hindered many to save. And in fact if you examine it carefully, it was/is the banks that were/are loosing out on many potential customers.

But now im happy to say that may be someone somewhere in their conscious was hearing me out. Im happy to see that banks in Uganda are now reducing in their requirement and also willing to “help” out the locals with accounts as they process their data.One now only "requires"UGX 10,000 and you go back home with a saving account in most of the banks here.The rest is done as the account runs. This is a big step forward. And its not only banks that people or the world would consider small.Im talking of banks like Barclays. Though we must realize that it’s the smaller banks that opened up the eyes of big banks like backlays.For them they targeted the money first then process data. But because of different reasons mismanagement inclusive, they went out of business after loosing and cheating clients out of their monies.
The other factor could be the liberalized economy in Uganda. This has attracted many regional banks especially from Kenya and South Africa. These came in with slightly fewer requirements and are competent enough to deal with clients’ money.
Last but not least, there was/is a steady market here. People are now very keen on saving their income here, something never seen before. Long cues are seen at the ATMs everywhere. A Sign that market is there. So I think that with the above realization, the Banks here are seemingly softening or allowing process at work the data as they serve their customers.

I have to make one more plea to the Banks here though. Make more loans available to people. Especially the youths. Many are capable and willing to service them.