Diamond Trust Bank (DTB) has signed a partnership with TerraPay, a global partner to improve tge banks money transfer services.
Through this partnership, people in any part of the world will be able to directly send money to their accounts in Uganda (DTB) from any part of the world.
This partnership is poised to significantly narrow the financial inclusion gap, streamlining the processes of money transfer, savings, and credit accessibility for individuals.
According to official the strategic move will make life better as Diamond Trust Bank (DTB) and TerraPay slash charges on international remittances.
Currently DTB charges 6.2%, and 7.3% (excluding transfers from Tanzania, which elevates the cost to 11%), according to the Global Forum on Remittances, Investments, and Development.
Both the United Nations, under the Sustainable Development Goals, and the G20 group of countries aim to achieve a reduction in these costs to 3% or less by 2030.
The agreement between TerraPay, a Dutch-based firm, and DTB is set to significantly narrow the financial inclusion gap, simplifying the procedures for money transfer, savings, and access to credit for individuals.
Samuel Muyingo, TerraPay Country Manager for East and Southern Africa, said the deal allows money sent from anywhere in the world to be swiftly deposited into the recipient’s DTB bank account.
Muyingo stressed TerraPay’s efficiency saying it enables money transfers to Uganda from at least 210 countries, with transactions completed within a minute, providing a convenient solution for the diaspora to send funds home.
Muyingo added that TerraPay’s costs are fixed, not exceeding $1.8 per transaction, regardless of the amount, surpassing the UN’s target average of 3 percent per transaction.
This initiative is anticipated to primarily benefit customers in Qatar, Canada, Europe, Kenya, Germany, the United Arab Emirates, the United Kingdom, and the United States. It empowers them to perform real-time money transfers to recipients in Uganda.
Varghese Thambi, DTB Uganda Managing Director, explained that the bank already has partnerships with four money transfer firms, and this new collaboration adds the advantage of low costs and rapid transaction completion.
Thambi pointed out that many Ugandans perceive fast transfer services as expensive and limited in reach, whereas with this initiative, recipients can conveniently access their funds from any DTB branches and bank agents.
This strategic partnership is poised to drive the expected growth in digital transactions within Uganda, a market forecasted to reach an impressive $1.3 billion by 2027.
Thambi stressed that this collaboration will incentivize more individuals to open bank accounts, as it not only reduces the cost of withdrawing money but also streamlines the often lengthy processes and paperwork associated with other services and systems.
Willie Kanyeki, TerraPay’s Vice President for East and Southern Africa, expresses confidence that the partnership will be successful, promoting financial inclusion in the region by simplifying global money movement for both individuals and businesses. This, in turn, facilitates easier connections with loved ones and empowers global commerce.
“We are confident that this partnership will be a success and will help promote financial inclusion in the region by simplifying global money movement for both individuals and businesses, making it easier than ever to connect with loved ones and also, empower global commerce,” he said.
Diamond Trust Bank (DTB) is a leading regional bank, listed on the Nairobi Securities Exchange (NSE). An affiliate of the Aga Khan Development Network (AKDN), DTB has operated in East Africa for over seventy years.
