Agent Banking in East Africa: Then & Now – Reflections from Uganda's Shared Platform Model (2018–2024)

Updated April 2025: This article builds upon our original 2018–19 case study to reflect regional trends and progress across East Africa.

In 2017, nearly 58% of Uganda's adult population remained unbanked, largely due to systemic barriers such as limited formal banking infrastructure, lack of formal identification for KYC, distrust in the financial system, and literacy challenges. While Mobile Money has made strides since 2009, especially through MTN and Airtel, many Ugandans still lack access to affordable credit or integration into the formal credit ecosystem.

Recognizing these challenges, the Bank of Uganda (BoU) revised regulations in 2017. It facilitated the formation of the Agent Banking Company (ABC) – a joint venture between the Uganda Bankers Association (UBA) and Eclectics International. The mission: to build and operate a shared agent banking platform enabling financial institutions to extend outreach cost-effectively and securely.

Background & Project Strategy

In 2018–19, our bank joined the ABC shared platform to reach rural and semi-urban populations. The initiative was not just about access, but inclusion, enabling people to open proper bank accounts, reduce transaction costs, build financial histories, and access affordable credit and insurance products.

The strategic goal was to promote local currency deposits, enable agent-based onboarding, and scale up financial services delivery via trusted local touchpoints like pharmacies, hardware shops, and mobile retail points.

Institutional Strengths

Our readiness included:

• Technology Infrastructure: CBS integration, robust APIs, disaster recovery, and firewall protection.

• Operational Capacity: MNO-trained agent supervisors, scalable operations teams, and responsive call centers.

• Marketing Alignment: Integrated GTM strategy.

• Risk & Compliance: Integration with NIRA for digital KYC, agent manuals, grievance redressal frameworks.

  
  

Challenges & Mitigation Strategies

• Agent Onboarding Delays: Mitigated by engaging distribution-heavy institutions like Posta Uganda.

• Rural Trust Deficit: Solved by pairing tech with frequent field visits and community engagement.

• Liquidity Shortfalls: Addressed with real-time liquidity tracking, agent supervisors, and branch tie-ups.

  
  

Opportunities & Regional Synergies

As we expanded, several cross-border learnings emerged:

• Kenya leveraged bank-led agent models (Equity Bank) to scale transaction volumes.

• Tanzania enhanced rural agent liquidity via fintech-led cash-in/cash-out solutions.

• Rwanda integrated SACCOs into the national agent framework for greater reach.

In Uganda, the shared ABC platform supported more than 15,000 agents by 2024, improving cost-efficiency and customer access across institutions.

Smart Goals & Digitization Drivers

• Roll out of USSD mobile banking, smart kiosks, CDMs, and omnichannel tools.

• Embedded agent banking into financial product journeys: micro-loans, Agri-Insurance, group savings.

• Use agents as key nodes for rural outreach, marketing, and data capture.

Technical Implementation

We followed a rigorous, phased approach:

• Scope and BRD development

• Network & server evaluation

• SWITCH & ABC integration

• UAT testing, training, and risk audits

• Go-Live through pilot and phased agent activation

Change Management & Internal Transition

To make this a cultural success, we ensured:

• Executive buy-in and budget reallocation

• Realignment of staff workloads and roles

• Cross-functional collaboration through internal champions

• Process templates and product documentation for scale

Risk Management & Mitigation

• Customer Literacy: Mass education campaigns and agent-led demonstrations.

• Business Risk: A Transparent long-term investment case presented to shareholders.

• Tech & Liquidity: Real-time agent monitoring and automated liquidity alerts.

Looking Ahead: Interoperability and Inclusion

The long-term impact of Agent Banking in East Africa lies in:

• Biometric-enabled services replacing PINs

• Integration with National IDs for seamless onboarding

• Cross-platform interoperability between mobile wallets, savings groups, and banking networks

Agent Banking Then and Now - East Africa

Final Word

Agent Banking has evolved from pilot infrastructure into a regional model of resilience and inclusion. As seen in Uganda’s case, shared platforms and public-private partnerships can transform the financial landscape.

📖 Read the original 2018–19 case study for foundational insights: Digital Journey in the Roll-out of Agent Banking

Let's continue to build on this momentum to bridge the last mile with dignity, innovation, and local relevance.