Safety, cost concerns still limiting uptake of mobile banking by Ugandans

More Ugandans subscribing to mobile banking are using the platforms to withdraw money from their bank accounts, than those using them to deposit, according to the service providers. This is one of the findings and developments in the banking and financial technology (Fintech) industries that will form the discussions at the 6th Annual Bankers Conference next Monday. Various reasons are forwarded for this low uptake of banking money using the mobile phone, including the fear of the transaction not being complete therefore loss of money, as well as the high cost of transacting. Speaking ahead of the conference, Richard Yego, MTN Mobile Money Uganda Managing Director said Shillings 4 billion was withdrawn from banks to the mobile wallet last year as opposed to Shillings 2.6 billion deposited from the wallet to the bank. However, to prove the importance of the Fintech industry, Yego said Shillings 90 trillion was moved around electronically by MTN alone, while Shillings 400 billion went out in mobile loans. Some banks charge as high as Shillings 5,000 to deposit money from the mobile wallet to the bank account compared to the charge on withdrawal from the bank to the wallet of between Shillings 1,000 and 1,700. They say sometimes it makes more business sense to deposit cash via the counter or move physical cash from one bank to another. Yego said they hope the establishment of a national switch, the process of which is underway, will help reduce the costs.