Transforming electronic payments in Uganda

Interbank switching
Bankom currently links 5 banks on our Postilion switch with a total of 35 ATMs on the network.

Independent ATM network
Bankom has an ATM network branded Smartpoint. Plans are to expand the existing network of 10 ATMs to 50(end 2008).
Bankom currently provides switch hosting and card management facilities to banks and MDIs.

Cellular Banking:A solution is planned to give GSM subscribers easy acess to financial services.

- Few banking channels in the market
- Payment transactions are primarily cash based: exposure to theft and forgery
- Some banks & MDIs cannot afford capital intensive equipment like ATMs, switches, etc

ATM expansion
NCR ATMs are to deployed due to their strong presence and maintainance capabilities in the market. A project team would co-ordinate premises management, procurement, installation, and commissioning.

Cellular banking
A solution compatible with the Postilion switch is to be sourced. Product specifications have already been defined. A capable solution provider will be selected to implement.

Market activities
To increase market awareness and promote transaction growth, the activities planned include: radio adverts, newspaper adverts, posters, suburban signs, and other media events.

Other activities planned include flyer distribution, electronic announcements, and interviews in the different media

Sales
Our primary customers are the banks & MDIs which will be targeted by direct presentations and follow up sales visits.

Primary market
Our primary market are commercial banks and micro deposit taking institutions with whom we sign agreements with.

Secondary market
These are the customers of our member banks who have access to our ATMs and interbank switch. The marketing campaigns are most geared to them to encourage transaction growth.

Tertiary market
This is the general public to whom we have to inform about the various offered solutions and services.

Bankom holds an exclusive licence on interbank switching and thus while there is no competition in that area, there are competitors in other sectors. The exclusive licence will be expiring in October 2009 and thus Bankom is already positioning itself to cater competition then.

Other direct or indirect competitors include a) banks with large ATM networks that don't want to join the switch and b) foreign switches with similar solutions c) Visa

- Exclusive interbank switching licence in Uganda
- Experienced staff with backgrounds ranging from telecommunications, banking, architecture to business administration.
- In-country full capability switch

Uganda is primarily a cash based economy and changing to electronic payments in itself is innovative. Solutions that we are looking to implement like salary processing, cellular banking, ATM network, etc have not been implemented before in Uganda.

Bankom also plans to sweat existing assets and provide innovative value added services e.g. bill payment and airtime topup on the ATMs, switch, etc.

1) Offering services and solutions at attractive but lucrative prices both to the primary customer and the end consumer.
2) Aggresively selling and marketing our products.
3) Introducing new and innovative products based on feedback and opportunity areas identified from customers or problem areas in the market.
4) Raising general market awareness of the company.
4) Managing the cost base as the company grows to maximise profit.

Board
The Bankom board comprises of a cross section of accomplished people ranging from lawyers, engineers, highly successful businessmen, to professional managers.

Management
The management team is a highly educated and experienced team with various professions that compliment each other. Qualifications include an MEng, an MBA, a qualified accountant and an architect. Experience ranges from property, banking to telecommunications.

1) We posses the right cross section of skills within the board and management team to steer the company in electronic payments.
2) We already have good relationships at different levels with commercial banks and MDIs.
3) We have a good relationship with the central bank (Bank of Uganda). Board members and senior management have been vetted and approved by them.
4) We have strong electronic payment knowledge and experience in the market.

As the managing director, I am in full time employment with the company.

The board meets on average 6 times a year since the company is still young.

Bankom services improve the standard of living by:
- Providing convenience by taking touch points and access points to the people thus negating the need for distant travel to the nearest ATM.
- Reducing the total cost of transaction as transport costs are minimised.
- Educating people through the planned marketing campaign.
- Encouraging mass market to enter formal sector by the provision of simple easy to use solutions.