Uganda and US Co. Launch Rural E-Banking
Ederer, Edith M. "Uganda and US Co. Launch Rural E-Banking." Associated Press 21 Oct. 2007. 23 Oct. 2007 http://ap.google.com/article/ALeqM5h6jErcVy1jTFGtYKzxMR0U22f2KQ.
This article discusses how Uganda's finance minister wants to give every part of the country accesss to the banking system and financial services. Finance Chief Ezra Suruma called upon an American company to help with the infrastructuring of this immense task because Uganda does not how the IT knowledge to take on such a task. The plan is to bring electronic banking to the rural areas in which 85% of the country's 29 million people live. So far, 389 savings and credit cooperatives are functioning and at least a thousand are to be created.
I feel like this decision is taking a big step forward to improve the economic situation of Uganda. Africa is troubled by poverty and turmoil and many of its countries lack stability. Implementing E-banking for all Ugandans will allow all the people who live in rural areas to deposit, manage, and have access to their savings. Many people who live in rural areas do have more money than people think but they can not do anything productive with it. This leaves people with no choice but to stash it in their homes and on their property because they have no where to go with it.
Currently many small banks have been built but they still lack an integrated system that will connect them with the national banking system. Uganda seeks help from foreign companies to help achieve its goals. When this project is finished Uganda should start to see vast changes in every aspect of its society. Many people in rural areas will have bank accounts and in turn will be able to recieve loans to further their local businesses. In the future, Uganands will start to see full-service banking institutions and be able to obtain credit and debit cards and he will also be able to pay bills electronically. Gradually, the economy should improve itself and Ugands will see better times.
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4 comments:
This is a really interesting article. It is amazing to me that 85% of the people do not have access to banking, it is really unimaginable. I think it's wonderful that IT can help all those people take control of their financial future. Thanks for the interesting article!
What are the IT obstacles to reaching 85% of the people in rural areas? How should they build a telecommunications infrastructure? is there adequate access to electricity? what about the human factors issues associated with learning the mechanics of "on line banking?" Excellent issues to ponder.
I think that this is an interesting article as well. Uganda has many hurtles to cross yet however. I think it is very good of the country to want to improve its people and asking for help in this way. If people can be more secure with their financial situation it improves life for all.
It is good to see that the government wants everyone in there country to have access to a bank. Even though its an on-line bank its good that there is a way for the people to be able to secure their assets .
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