To address the financial inclusion, challenge the Ministry of Finance, Planning and Economic Development together with the Bank of Uganda brought together different stakeholders to form the Inter-Institutional Committee on Financial Inclusion (IICFI) to develop the National Financial Inclusion Strategy. The vision of the National Financial Inclusion Strategy is “All Ugandans have access to and use a broad range of quality and affordable financial services which helps ensure their financial security”. This strategy places a focus on Women and Youth in rural areas.
Financial infusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs transactions payments savings and investments credit and insurance delivered in a responsible and sustainable way 15 out of every 100 adults in uganda are excluded from the financial system their more adults keeping
Their money at home than those using the formal financial system five out of every ten adults save their money in a secret place at home the use of the formal banking system in uganda is still very limited with only two out of every ten adults using the bank account for their financial services there are more adults using non banking services such as savings and
Credit cooperative organizations suckers and village ceilings and loan associations vsl is with five out of every ten adults using this services the mobile phone has also played a major role of increasing the frontiers of financial inclusion in uganda with four out of every ten adults now using mobile money services hardly any you ganon’s manage their risks using
Formal insurance services only two out of every hundred adults have a formal insurance policy to address the financial inclusion challenge the ministry of finance planning and economic development together with the bank of uganda brought together different stakeholders to form the inter institution committee on financial i i see fi to develop the national financial
Inclusion strategy the vision of the national financial inclusion strategy is all you ganon’s have access to and use a broad range of quality and affordable financial services which helps ensure their financial security their strategy places a focus on women and youth in rural areas the strategy sets out five strategic objectives to achieve in the next five years
One reduce financial exclusion and excess barriers to financial services to develop the credit infrastructure for growth three build out the digital infrastructure for efficiency for deepen and broaden formal savings investments and insurance usage five empower and protect individuals with enhanced financial capability the national financial inclusion strategy sets
Our targets to achieve by 2022 across three financial inclusion strands access usage and quality of financial services for access to reduce financial exclusion from 15% to 5% increase access points about 100,000 adults from 548 to 615 grow usage of formal financial institutions banks non banks including mobile money from 54% to 80% increase credit viewers coverage
From 6% to forty percent of adults grow active individuals with stored value accounts from 31 percent to 60 percent for example mobile financial services and a usage increase for more savings from 25% to 50% through greater transparency competition and use of technology increase percent of adults with emergency savings from 41% to 60 percent increase insurance usage
From 2 percent to 7 percent of adults under quality increase percentage of women who fuelie understand financial services available to them in an elaborate structure has been put in place to ensure that the national financial inclusion strategy is successfully implemented on top of this structure is the steering committee that is composed on the ministry of finance
Planning and economic development bank of atlanta and financial sector regulators this committee provides the strategic vision support and resources for the implementation of the strategy then there is a technical committee that reports to the steering committee the inter-institutional committee of financial inclusion iii cf it coordinates and brings together the
Various stakeholders involved in implementation of the strategy reporting to the inter-institutional committee of financial inclusion our five working groups co-chaired by representatives from the public and private sectors the working groups are broken down as follows one reducing access barriers to mobile financial services three credit infrastructure for deepen
And broaden formal savings investment and assurance usage and five empowering and protecting individuals besides the main structure is the secretariat hosted by the bank leumi gander and the financial inclusion forum is neither a formal committee with membership no an organization but rather an avenue discussion revealed at a debate of financial inclusion initiatives you
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National Financial Inclusion Strategy Video By FSD Uganda
