In Uganda, home to over 1.5 million refugees—the largest refugee population in Africa—access to financial services remains a significant challenge. Equity Bank Uganda has addressed this gap with its groundbreaking Agency Banking Network for Refugees, a first-of-its-kind initiative tailored to integrate refugees into the formal financial system.
Launched to enhance financial inclusion, this network leverages digital platforms and a network of 242 agent bankers in refugee settlements to provide banking services, create jobs, and empower communities. By combining technology with a human-centric approach, Equity Bank is redefining financial access for one of Uganda’s most vulnerable populations.
The Refugee Financial Inclusion Challenge
Refugees in Uganda, primarily from South Sudan, the Democratic Republic of Congo, and Somalia, often reside in remote settlements like Nakivale, Bidibidi, and Adjumani. Traditional banking infrastructure is scarce in these areas, and refugees face barriers such as lack of identification documents, limited financial literacy, and restricted mobility.
According to the UNHCR, only 10% of refugees in Uganda access formal financial services, relying instead on cash-based aid or informal savings groups, which are prone to theft and mismanagement. Equity Bank recognized this gap and pioneered its agency banking model to bring secure, accessible financial services directly to refugee settlements.
This initiative aligns with Equity Bank’s broader mission of financial inclusion, as seen in programs like the Young Africa Works strategy with the Mastercard Foundation, which aims to empower 4.3 million young Ugandans, including refugees, by 2030. The agency banking network is a bold step toward economic empowerment for displaced populations.
How the Agency Banking Network Works
Equity Bank’s agency banking model for refugees operates through a network of 242 agent bankers—local entrepreneurs trained to provide banking services in settlements. These agents, often refugees themselves, operate small banking outlets called Equi-Duuka, equipped with digital tools like point-of-sale (POS) devices and mobile banking platforms.
Refugees can open bank accounts, deposit and withdraw cash, receive humanitarian cash stipends, and access loans using simplified identification processes, such as UNHCR-issued refugee IDs.
The network is integrated with Equity Bank’s platform, accessible via the *247# USSD code and the Eazzy Banking app. This allows refugees to perform transactions, check balances, and apply for micro-loans from their mobile phones, even in areas with limited internet connectivity.
The USSD interface is particularly critical, enabling feature phone users to access services without smartphones. Agents also facilitate financial literacy training, teaching refugees how to save, budget, and use digital banking tools effectively.
Technology Powering the Network
The agency banking network is built on Equity Bank’s robust digital infrastructure, leveraging cloud-based systems and secure APIs to ensure seamless transactions. POS devices at agent outlets are linked to the bank’s core banking system, enabling real-time updates and secure cash handling.
Machine learning algorithms analyze transaction data to monitor fraud and ensure compliance with regulatory standards, such as anti-money laundering protocols. End-to-end encryption protects user data, addressing cybersecurity concerns in vulnerable communities.
The USSD platform (*247#) is a cornerstone of accessibility, allowing refugees with basic mobile phones to engage with banking services. This is critical in settlements where internet access is unreliable, and smartphone penetration is below 20%. The network’s scalability is evident in its ability to serve thousands daily, with agents handling transactions worth millions of shillings monthly.
