- With enhanced data access provided by online financial platforms, the integration of AI and machine learning will soon revolutionize banking experiences, making them highly personalized.
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The future of financial inclusion, both nationally and globally, hinges on the financial sector's ability to efficiently and effectively gather data from the millions in need of financial services.
Over the past year, PostBank has had the privilege of assisting the government in distributing funds for the Parish Development Model (PDM). Through our Wendi mobile wallet platform, we have disbursed approximately Ushs 600 billion and are on course to allocate one trillion shillings by the end of the fiscal year.
While these funds have significantly benefitted countless families and businesses across the country, the insights we have gained from this initiative are even more valuable. Our experience has solidified our understanding and the industry’s perspective on the crucial role Artificial Intelligence (AI) and machine learning will play in advancing financial inclusion.
Financial inclusion is essential, particularly in developing countries, to mobilize resources for growth and development. Central to the PDM's strategy is improving the livelihoods of around 3.5 million households, or 17.5 million Ugandans, by using the parish as a focal point for planning and implementation. The widespread adoption of mobile phones in Uganda—approximately 33 million users—underscores the potential of technology to drive this process effectively.
In response to this need, we developed the Wendi mobile wallet, designed to facilitate saving, borrowing, and accessing various banking services. Beyond these functions, Wendi serves as a vital data collection tool, benefiting both the bank and the broader economy.
We were pleasantly surprised to find that technology adoption is significantly higher among rural populations targeted by the PDM than initially anticipated. Since its launch in 2023, the Wendi platform has registered one million new accounts, a notable achievement considering the bank's previous client base of around 700,000.
The platform’s compatibility with both smartphones and USSD codes, which allow text message transactions, has been advantageous, given that only about one-third of mobile phone users have smartphones. This is expected to shift as smartphone prices continue to decrease.
These new users are generating valuable data, transforming planning decisions from speculative to evidence-based, thereby enabling more impactful decision-making.
Our experience highlights that meaningful and sustainable financial inclusion is achievable only through technology. Many individuals are not without resources but are excluded from the formal financial system due to convenience issues. For instance, some village groups have saved substantial amounts of money in unconventional ways, reflecting a need for better financial integration.
While some districts lack bank branches, every district, parish, or village has mobile phone users, illustrating the widespread potential for mobile financial services.
Though the human element in banking remains important, future bank branches will likely focus on technology access, customer service, and personal interaction, with routine tasks such as account management and transactions increasingly handled online.
With enhanced data access provided by online financial platforms, the integration of AI and machine learning will soon revolutionize banking experiences, making them highly personalized. Just as two individuals with identical smartphones will have distinct app experiences, financial services will evolve to offer uniquely tailored experiences for each customer.
At PostBank, we are excited to witness the growing integration of more individuals into the financial system and the new visibility we gain into rural consumption patterns. This data enables us to make informed decisions that positively impact lives, showcasing the immense and transformative potential of financial inclusion driven by technology.
By Andrew Kabeera
The author is the Executive Director and Chief Digital Financial Services Officer at PostBank.