Since 2018, Centenary Bank in Uganda has embarked on deliberate steps to provide affordable and customised banking solutions to refugees. This has seen the institution penetrate Refugees as a viable market segment with the goal to promote financial inclusion.
The bank has focused on providing affordable, customised banking solutions that promote financial inclusion. Through initiatives like Financial Literacy Trainings, Centenary Bank interacts with refugees to gather feedback, assess their needs, and raise awareness. This initiative has enabled Refugees in Uganda to access bank products and services while empowering them with financial management skills for economic resilience and sustainability. It involves working with persons of concern to mobilise, interpret, and deliver services, such as meals and refreshments, in various training sessions.
Collaboration and community engagement
A key factor in the success of this initiative is Centenary Bank’s collaboration with key stakeholders such as the Office of the Prime Minister, refugee welfare communities, and refugee-led organisations. By working with these partners, the bank has identified beneficiaries and mobilised local agents who deliver banking services directly in refugee settlements and host communities. This community-driven approach ensures that refugees are not only able to access financial products but also receive training on financial literacy and management.
Other partners that are involved are the European Investment Bank, the International Rescue Committee, and UNHCR.
Overcoming challenges
Like many large-scale initiatives, Centenary Bank faced challenges along the way. Language barriers were addressed by hiring refugees as translators, making the programme more accessible. To combat insufficient funding, Centenary Bank secured additional resources through proposals and committed a portion of its CSR budget to support the training programmes. Additionally, the bank adapted its lending models to address collateral gaps and flight risks, ensuring refugees could still access credit.
Impact and results
The initiative has yielded tangible results: over 1,500 refugees have received financial training, more than 100 businesses have been created, and 15 local agents have been recruited to offer banking services within the settlements. These agents have not only expanded access to banking but also created job opportunities, which have contributed to the economic development of both refugee and host communities. Furthermore, by offering secure financial services, the bank has helped reduce gender-based violence in these areas, as women no longer need to store cash at home.
Alignment with the Global Compact on Refugees
Centenary Bank’s efforts align with Objective 2 of the Global Compact on Refugees: enhancing refugee self-reliance. By providing refugees with the financial knowledge and tools to manage their finances, the bank is helping them transition from dependence on cash-based aid to sustainable economic activities like entrepreneurship. This shift not only improves refugees’ quality of life but also contributes to the broader economy, benefiting both the refugees and their host communities.
Looking ahead: Scaling the initiative
Centenary Bank is committed to continuing and expanding this initiative. To meet the increasing demand for training and services, the bank seeks additional funding and resources to scale the programme. Plans include expanding digital banking solutions, supporting gender-sensitive financing, and building a dedicated staffing structure to serve refugees. The bank’s continued investment in this area will ensure that refugees in Uganda remain a core focus of its financial inclusion strategy.
Source: Global Compact on Refugees.
