Overview:
Pride Microfinance in Kampala transitions to Pride Bank, a Tier II credit institution, enabling enhanced savings, loan products, and digital banking.
KAMPALA — Pride Microfinance (MDI), a prominent microfinance deposit-taking institution in Uganda, officially launched its operations as Pride Bank Limited on Tuesday, marking its successful transition to a Tier II credit institution. The announcement was made at a press conference in Kampala, signifying a new phase for the government-owned financial institution.
The upgrade to a Tier II license, granted by the Bank of Uganda on Nov. 26, 2024, allows Pride Bank to expand its range of financial products and services. These will now include more competitive savings accounts, enhanced loan facilities, and comprehensive digital banking solutions, building upon its established commitment to financial inclusion across Uganda.
“Having achieved Tier Two banking license, we now stand ready to offer expanded financial solutions… We shall continue to push for financial inclusion because this is a very important aspect of who we are as Pride, and therefore we intend to reach more customers with banking solutions that positively impact their lives,” stated Edward Nkangi, Executive Director of Pride Bank Limited.
Fred Jachan Omach, board chair of Pride Bank Limited, emphasized the significance of the transition and acknowledged the supportive role of the government and the Bank of Uganda. “Today marks a truly significant and exciting milestone in the journey of Pride Microfinance… We extend our sincere gratitude to His Excellency the President for fostering these conditions,” Omach said. He also credited the Bank of Uganda’s oversight for facilitating the institution’s growth and its readiness for this new level of operation.
Representing the Bank of Uganda Governor, Mackey Owumu highlighted the strategic importance of the tiered financial system, noting that Pride’s graduation from an MDI to a Tier II institution is a positive step in the sector’s development. “Pride’s graduation to a credit institution marks what I believe is the third such significant progression,” Owumu noted, underscoring the central bank’s role in nurturing financial institutions’ growth. He pointed out the benefits for Pride Bank, including the ability to offer a wider array of services and access broader funding opportunities, which will enable a greater focus on supporting Small and Medium-sized Enterprises (SMEs) and continuing group lending initiatives.
Wilbrod Owor, Executive Director of the Uganda Bankers Association, congratulated Pride on its upgrade, recognizing its preparedness and vision. “Your journey to becoming Pride Bank and acquiring a Tier Two license is truly commendable and speaks volumes about your preparedness and vision,” Owor stated. He also commended Pride Bank’s focus on serving specific segments of the population, particularly small and medium-sized businesses, which form the backbone of the Ugandan economy. Owor concluded by emphasizing the critical importance of security as Pride Bank embarks on this new chapter, urging a strong focus on protecting depositors’ savings.
Pride Bank, formerly Pride Microfinance (MDI), has been a key player in promoting financial inclusion in Uganda with its extensive network of branches. As a wholly government-owned institution, it aims to leverage its new Tier II status to further empower communities through accessible and convenient banking services. The transition is expected to enhance Pride Bank’s capacity to meet the evolving financial needs of Ugandans and contribute to broader economic development.