Ugandans Shun Banks, Opt for Alternative Savings Methods

Kampala, Uganda: A growing number of Ugandans are ditching traditional banks and instead choosing to keep their money at home or in Savings and Credit Cooperatives (SACCOs). According to recent statistics, the number of people keeping money at home has skyrocketed from 27% in 2018 to 44% in 2023.

Meanwhile, the banking sector is witnessing a significant shift towards SACCOs, with the percentage of people saving in these cooperatives rising from 5% in 2018 to 15% in 2023.

Flavia Nakabuye Bwire, manager of Membership and Financial Inclusion at the Association of Microfinance Institutions of Uganda (AMFIU), attributes this trend to the growing popularity of SACCOs. “SACCOs are becoming increasingly popular due to their ability to provide financial inclusion through savings and microcredit facilities,” she explained.

Bwire was speaking during a training session for SACCO leaders from Northern and Central Uganda at Umoja House in Nakasero, Kampala. The training, organized by Stanbic Bank, aimed to improve leadership and financial management skills among SACCO leaders.

The training is part of Stanbic Bank’s efforts to support the growth of SACCOs and promote financial inclusion in Uganda. By equipping SACCO leaders with the skills they need to manage their cooperatives effectively, Stanbic Bank hopes to contribute to the development of the SACCO sector and improve the lives of Ugandans.

As the trend towards keeping money at home and in SACCOs continues, it remains to be seen how this will impact the traditional banking sector. However, one thing is clear – Ugandans are increasingly seeking alternative ways to manage their finances, and SACCOs are emerging as a popular option.

In addition to SACCOs, saving money in pension schemes is also gaining traction. This trend is expected to continue as more Ugandans seek to secure their financial futures.

Overall, the shift towards keeping money at home and in SACCOs reflects a growing desire for financial inclusion and security among Ugandans. As the financial landscape continues to evolve, it will be interesting to see how this trend develops in the coming years.