By Brenda Mpoora
At 73 years old, Kaka Mbabazi experienced a financial transformation when she was introduced to PostBank’s Wendi Mobile Wallet by her granddaughter Patience. Previously unbanked, Kaka relied on storing her money in a suka—a traditional wrap—leaving her savings vulnerable. Now, she can save securely and receive money directly on her mobile phone, avoiding trips to the trading center and safeguarding her finances.
Kaka’s story is a testament to the power of combining Savings and Credit Cooperative Organizations (SACCOs) with financial technology (fintech) in advancing financial inclusion. Recent findings from the Finscope report highlight a surge in SACCO adoption, with uptake rising from 5% in 2018 to 14% in 2023. Village Savings and Loans Associations (VSLAs) and SACCOs are now among the most common saving mechanisms for Ugandans.
Similarly, mobile phone adoption for savings has skyrocketed, with usage climbing from 23% in 2018 to 42% last year. This growth has been fueled by the increasing penetration of mobile phones, which now reach 67% of rural households.
Historically, access to financial services was limited to urban areas, hindered by extensive paperwork, intimidating banking requirements, and high minimum balances. The rise of SACCOs, complemented by fintech innovations like Wendi, has made financial services accessible to rural and underserved populations.
Since its launch in October 2023, Wendi has onboarded hundreds of thousands of users, including individuals, SACCOs, and VSLAs, processing millions of transactions. The platform’s simplicity—requiring no prior bank account—has driven widespread adoption among previously unbanked communities.
Wendi’s success also extends to capacity building. PostBank provides digital literacy training to empower users to maximize their mobile phone capabilities. Furthermore, the bank supports SACCOs and VSLAs in achieving regulatory compliance, enhancing their credibility and operational efficiency.
The convergence of SACCOs, VSLAs, and fintech like Wendi has immense potential to mobilize resources, increase savings, and boost access to credit. As PostBank continues to innovate, it remains committed to fostering economic prosperity for all Ugandans.
The author is the Head of Fintech Business at PostBank.