UBA becomes mobile money agent in Uganda

United Bank of Africa has become the first bank in Uganda to act as a mobile money transfer agent, breaking new ground in the money transfer service. UBA will be MTN's mobile money transfer agent, opening a huge client base for the bank. The venture between UBA and MTN, however, does not affect the partnership the telecom firm has with Stanbic Bank, the bank which guarantees that money is available for transaction.

For UBA, agreeing to become a mobile money agent - a concept that many banks usually leave for poorer section of society - is bound to reinforce its intention of reaching the unbanked groups.

Unlike the normal MTN mobile money transfer kiosks, UBA at least guarantees that customers will be able to receive their money at all times.

IAMTN: UBA has 14 branches in Uganda and this will be a good strategy for them to penetrate the mass market.