March 16, 2014

Foreign Remittances Increasing-DTB

Varghese Thambi, the Chief Executive Officer, for Diamond Trust Bank (DTB) on last week revealed that the partnerships with global money transfer service providers has seen an increase in foreign reminitances to Uganda as well as boosting the bank’s revenues.

A lady uses a DTB teller machine. DTB last week opened its Katwe branch, making it the 29t in Uganda and the 100th in Africa.
A lady uses a DTB teller machine. DTB last week opened its Katwe branch, making it the 29t in Uganda and the 100th in Africa.

Thambi made the remarks in a media interview, during the opening of DTB branch in Katwe last week on Friday, making it the 29th branch in Uganda and the 100th in Africa.

He was responding to queries on how the partnership entered last year between DTB and Xpress Money one of the World’s brand transfer service provider had shaped the performance of the bank.

“Our partnerships with global money transfer service providers like Xpress Money and Western Union have paid off by setting DTB as a center of excellence in money transfer services in Uganda. Our branches are now a one stop center where all financial transactions can be held and with this new partnership, our customers can send or receive across the globe.”

This according to Thambi, has given DTB an opportunity to increase and stretch out their networks across the country like the opening of branches a venture he says the bank has embarked on in order to bring the banking services closer to Ugandans.

“Owing to the trend in the growth of the remittance industry in Uganda, it gives us a tremendous opportunity to offer low cost charges on remittances something that has seen success in global transfer services.”

A report by the UN Conference on Trade and Development (2012) revealed that the Least Developed Countries and Uganda specifically have had incomes remittances from natives working abroad grow to a tune of 14% for the past 10years.

While the Non Residents Ugandans living abroad have been transferring more than $700millions annually, the report projects the money remitted to rise to $1billion in 2014.

Speaking at the opening ceremony, Thambi noted that opening up a branch in Katwe was in line with the bank’s values of providing Ugandans with financial knowledge and provide security to their money. “Whenever people move with money from one place to another, chances are high that the money could be stolen.

That’s why I am calling upon all people in Kisenyi to use banks to save their money, and I believe it is safer than keeping it in your house,” said Thambi. Musa Muleme, the Chairman of the area noted that the development is in the right direction towards transforming the image of the area that has been engulfed with all sorts of crimes let alone encourage saving culture and impart financial knowledge among the local traders.

By Prisca Wanyenya

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