The e-KYC enables the commercial banks and other financial institutions regulated by the Bank of Uganda, to have access to the National Identification Database at the National Identification and Registration Authority, NIRA.
Today, 25 out of 36 financial institutions supervised by BOU have taken on the system and another eight are installing the system.
UBA Executive Director, Wilbrod Owor says the restructuring has seen the lenders extend the repayment period of loans worth Ushs7.3 trillion. He says that as the COVID-19 cases reduced and the measures were lifted, the business, as well as the banking industry, started picking up, but unfortunately, this has been disrupted again.
FSME Executive Director, John Kakungulu Walugembe says Ugandans have not yet reached a digital literacy level where they can enjoy the benefits of a digital economy, which comes with job losses.
In a statement, UBA is now rallying all government business facilitation agencies like Uganda Revenue Authority, Uganda Investment Authority, the Ministry of Finance and the Judiciary, as well as private-sector agencies to join "join us in addressing the implications of the judgement and assist in avoiding the adverse effects" of the judgement on the economy and the country.
The reorganization will see the formation of a holding company where the banking business will be transferred as a subsidiary. The company will then invest in non-banking ventures. A holding company refers to a corporation that owns enough voting stock in another company to control its management and policies.
