INTERSWITCH Nigeria has acquired a 60% stake in Bankom Uganda, a move aimed at accelerating the firm’s market penetration and improving service delivery, the company business development manager, has said.
Kanduho Baguma said the acquisition was timely because Bankom is looking to expand its electronic payment services in Uganda.
He said Interswitch commands 100% of the Nigerian interbank switch transactions, with a wealth of experience in the utility payments sector.
Interbank switch services enable a customer of one bank to perform transactions on the ATM of another bank, making ATM banking more convenient.
Cairo International Bank, Global Trust Bank, UBA, Fina Bank, Finance Trust, Orient Bank and dfcu Bank are currently using Bankom interbank switch service. This means that if a customer is a member of any of the banks, they can use the ATM services of any other Bankom member bank.
Baguma said Bankom currently operates 77 ATMs in Uganda through its member banks. It also operates its own Smartpoint ATMs.
“Although Bankom is not a bank, it provides the technological infrastructure that allows electronic financial transaction between banks, utility companies and individuals,” Baguma said.
He added that Bankom was looking to expand technological innovations like mobile banking, Internet banking and prepaid credit and debit cards.