Africa-Press – Uganda. Stanbic Bank Uganda has said it will capture all its customers’ biometric data whenever they access loans and financial services starting June.
The new development is aimed at guarding against fraud and tracking loan defaulters.
Stanbic Bank Uganda is the largest bank by assets in Uganda with its total assets growing to Shs9.3 trillion in 2023 from Shs9.1 trillion in 2022.
The bank has 81 branches and 178 ATMs spread across the country.
Globally, the use of biometric verification for bank accounts is increasingly becoming a fundamental part of the banking and FinTech industry, as it offers an increased level of security and convenience compared to traditional methods.
Benefits of biometric security in banking includes enhanced security, enhanced accessibility, operational efficiency and reduced scam.
The outgoing Chief Executive Officer of Stanbic Bank Uganda, Ms Anne Juuko, said this during her presentation of the financial results for 2023 at Kampala Serena Hotel March 25.
With digitalisation in the financial system in place, it has become clear that financial institutions require a secure authentication system such as biometrics in digital banking to protect sensitive information and enhance customer experience.
Ms Juuko said the bank is heavily investing in technology to provide a modern banking system and also to guard against cyber security, pointing out that due to technology use, currently only 6.4 percent of their clients transact from the bank hall.
Following increased investment technology, Ms Juuko said operating costs increased in 2023 but it is worthwhile doing it because the aim is to improve the banking system with advanced technologies in place for financial services.
Ms Juuko also announced that the bank focuses on the economy as a whole with the aim of job creation and enterprise development, financial inclusion; providing loans to disadvantaged groups, to both schools and institutions of higher learning and providing training to local population in enterprise development, besides safeguarding the environment with the view of protection of natural resources.
“Tree planting: last year over 200,000 trees were planted in partnership with the Ministry of Water and Environment and private sector partners. Plastics recycling: one million people reached through awareness campaigns. (Taasa Obutonde), Environment and social assessments: Critical to our business model and supporting clients. 2,219 clients assessed,” she said.
Ms Juuko said the bank is financing 202 green businesses and the direct impact has resulted in 25 percent reduction in water usage.
“In 2024, in partnership, we are going to plant 40 million trees. You can see how the climate with the hot weather is hitting the country,” she said.
The chief financial and value management officer, Mr Ronald Makata said Stanbic Uganda continues with disciplined allocation of resources. Key areas of investment include platform capabilities in technology for example, cloud, APIs, Flexipay, data and Salesforce.
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