MyBucks, a Luxembourg-based financial technology (fintech) firm has acquired a 49 per cent stake in Opportunity Bank Uganda Limited as it seeks to expand its African presence.

MyBucks operates in 11 countries across the continent after completing acquisitions in Kenya, Tanzania and Mozambique in July this year. It also has operations in two European states.

Though the value of Uganda transaction is yet to be known, MyBucks says it retains the option of increasing its 49 per cent stake in Opportunity Bank.

“The reality is that digital and mobile banking are the only realistic paths for the unbanked and underbanked in many emerging African markets. Today, about 35 per cent of Ugandans have access to a mobile money account, where the introduction of fintech will go a long way in bridging the gap between the virtual and traditional worlds of banking. It’s really about providing our clients with faster, more efficient and less expensive access to financial services,” said Dave Van Niekerk, MyBucks chief executive officer.

Opportunity Bank Uganda Limited is a tier II lender licenced by the Bank of Uganda (BoU) with customer deposits valued at Ush22.5 billion ($6.6 million) and total loans worth Ush37.6 billion ($10.9 million). The bank serves more than 250,000 customers.

Industry players say the Tier II segment offers opportunity growth and with the entry of the fintech likely to boost financial inclusion.

“That segment lacks aggressive players but holds strong growth potential. Local players active in this segment are yet to exploit their full potential after many years of operation. However, average returns on investment recorded against assets, capital and interest margins are relatively higher than those posted by many banks.

“The entry of MyBucks might help accelerate penetration of the financial sector within the unbanked population that is being exploited by mobile money service providers,” noted Robert Mpuga, Head of Treasury at the Bank of Africa Uganda Limited.

Other Tier II lenders include Mercantile Credit Bank Limited, Post Bank Uganda Limited and Top Finance Bank Limited.