Finance Trust Bank will transition from a commercial bank to a Tier II credit institution effective April 1, 2026. The Bank of Uganda has approved a three-month transition period starting Jan. 1 to ensure service continuity for customers.
Finance Trust Bank will transition from a commercial bank to a Tier II credit institution effective April 1, 2026. The Bank of Uganda has approved a three-month transition period starting Jan. 1 to ensure service continuity for customers.

Overview:

Finance Trust Bank is repositioning its operations to focus on its core customer base after reporting record profits in 2024. The move to a Tier II license aims to drive innovation while maintaining its nationwide branch network

KAMPALA — Finance Trust Bank will transition from a commercial bank to a Tier II credit institution effective April 1, 2026, following approval from the Bank of Uganda.

The central bank has granted the institution a three-month transition period from Jan. 1 to March 31, 2026. This window is designed to allow the bank to phase out specific products and processes that require a Tier I license while ensuring a smooth handover for customers and maintaining financial sector stability.

In a public notice issued Jan. 29, the Bank of Uganda said the reclassification follows a decision by the bank’s board of directors to reposition the institution to better serve its core customer base. The regulator confirmed that Finance Trust Bank remains adequately capitalized and meets all minimum capital requirements for a Tier II license.

Management at Finance Trust Bank described the move as a strategic pivot aimed at driving growth and introducing innovative financial solutions. The bank assured the public that all services will remain accessible across its nationwide network of 35 branches and through its digital and agent banking channels.

The board and management are mindful of the great performance that the bank is experiencing and the opportunities in both new and existing business segments, the bank said in a statement.

The transition comes amid a record year for the institution, which reported a 178% surge in after-tax profits for 2024, reaching 10.36 billion shillings. Total assets also grew by 18% to 551 billion shillings during the same period.

The bank was founded in 1984 as Uganda Women’s Finance Trust Limited and has maintained a primary focus on the economic empowerment of women. It operated as a microfinance deposit-taking institution before receiving a commercial banking license in 2013.

Bank officials said the shift aligns with their current capital base and long-term objectives. The central bank reassured the public of its commitment to maintaining a stable and resilient financial system throughout the transition.