I&M Bank Uganda has signed onto TradeClear, an umbrella platform with 14 other banks, to ease and boost interbank trade within the country. The bank’s Executive Director and Chief Operations Officer, Sam Ntulume, speaks on the benefits of joining the platform and the market reception of I&M since its acquisition and rebrand of Orient Bank.
Q: How is the market reception of I&M Bank after your acquisition and rebrand of Orient Bank last year?
A: The reception has been extremely positive and well received by the market. Orient Bank had been in existence for 28 years and its acquisition by the I&M Group and subsequent rebranding has opened up the Bank to regional markets backed by a strong brand with reputable shareholders.
Q: You are one of the banks that have signed onto the Tradeclear Platform. Briefly explain what this is all about
A: Tradeclear is a practical framework within which to develop a more stable and inclusive interbank market amongst local banks in Uganda and is led by the Bank of Uganda and the Uganda ACI chapter through the Uganda Bankers Association.
Q: Describe the interbank market … why do banks trade with each other?
A: Banks trade with each other to offer more competitive pricing and product solutions to their clients.
Q: Why is I&M Uganda joining the platform?
A: Following our signing onto the program, I&M bank is now able to trade with all other banks in the program.
Q: What benefits are you looking at?
A: Frontclear, the organisation running the Tradeclear platform guarantees counterparty risk on all trades done through the program thus mitigating credit risk exposure.
Q: Why is this important for your customers?
A: Our customers will benefit from more specialised treasury solutions for their investments.
Q: What is your strategy for I&M becoming a major player in Uganda’s banking sector
A: We definitely have an expansion and growth plan that we are rolling out in Uganda. We shall be giving details soon. Today we are focusing on the Tradeclear platform.