The business community has been urged to embrace digital financial solutions in order to keep up with the ever-changing socio-economic landscape of the commercial environment.
During the announcement of the total return of the Easy Stock arrangement for 2022, Equity Bank’s managing director, Anthony Kituuka, emphasized the importance of a collateral-free lending arrangement for economic empowerment.
“Financial institutions are aiming to use digital platforms to attract potential customers in order to catalyze economic recovery across different sectors of the economy. The implementation of digital collateral-free lending systems is expected to increase the resilience of small and medium-sized enterprises,” he said.
Kituuka, added that Equity Bank has released its business performance report for the year 2022, which shows a 21% increase in total customer deposits.
He explained that this indicates a steady business recovery, which can be attributed to the bank’s modern financial management practices.
“The economic shock brought about by the pandemic has compelled financial institutions to design transformative products that target a wider range of social classes,” Kituuka added.
The efficient and effective adoption of digital financial technologies is projected to drive inclusive socio-economic growth in both local and regional markets.
Overall, technology has the potential to greatly enhance financial inclusion by reducing the cost and complexity of financial services, providing greater access to financial services, and improving financial literacy in the wider population.