Why Pride Bank’s New Products Mark a “Transformation with Purpose” for Ugandan Financial Inclusion

Pride Bank, formerly known as Pride Microfinance, today unveiled five new financial products, significantly expanding its offerings as a newly licensed Tier II credit institution. This strategic move, announced on Tuesday, is not merely an expansion of services but a testament to the bank’s enduring 30-year mission of “transforming lives responsibly,” directly addressing the evolving financial needs of Ugandans.

Veronicah Gladys Namagembe, Managing Director of Pride Bank, emphasised that the new products, an SME Loan, a Home Improvement Loan, a Mortgage Loan, Forex services, and Trade Finance, were developed directly from customer feedback. This customer-centric approach underpins the bank’s commitment to its core purpose, which aligns with three key goals of the United Nations Sustainable Development Goals: boosting sustainable agriculture value chains, fostering the growth of sustainable small and medium-sized enterprises (SMEs) for economic transformation, and strengthening economic resilience through financial inclusion.

“These new products are timely, targeted, and speak directly to the everyday realities of Pride’s customers, from business growth to home ownership to wealth preservation,” Namagembe stated, describing Pride Bank’s evolution from a microfinance institution as “a transformation with purpose.” This underscores the capacity of an indigenous financial institution to grow significantly while remaining deeply dedicated to serving the Ugandan populace.

Joseph Fetaa, Pride Bank’s Head of Business, elaborated on how the upgrade to a Tier II institution, licensed in November 2024, has dramatically broadened the bank’s capabilities. “This new license means we can offer a wider basket of goods to the market,” Fetaa explained. “Our customers are becoming more informed, more ambitious, and they have immense options. Pride Bank is now equipped with a bigger and better basket of financial solutions, with more flexibility and responsibility to serve the full financial journey of our customers – from their first savings account to their first home, first startup capital, and sustainable wealth.”

The newly launched products are designed to cater to a diverse range of needs:

• Forex Savings Account: A crucial addition for customers with international income, including those receiving diaspora remittances, enabling savings in major international currencies like USD. This offering became possible thanks to the Tier II transformation.
• SME Corporate Loan: Specifically targeting the vital small and medium-sized enterprise segment, this product aims to bridge capital gaps for business expansion, featuring a competitive flat interest rate of 14%.
• Mortgage Loan: Marking Pride Bank’s entry into the homeownership financing space, this product targets professionals, youth, and middle-class customers seeking long-term financing solutions for their homes.
• Home Improvement Loan: Addressing a widespread need, this loan provides an accessible and affordable avenue for Ugandans to upgrade or modify their existing homes.
• Trade Finance Solutions: Geared towards traders involved in import businesses, these solutions, including letters of credit and documentary collections, are designed to build confidence with international exporters by ensuring quality and timely delivery of goods. This product is slated for launch around July.

Fetaa credited the bank’s team for their extensive research and customer engagement in developing these tailored products, emphasising that “all our products are developed with the voice of the customer, not just in the boardroom.”

With 47 branches operating across Uganda, Pride Bank has a proven track record, having disbursed over 2.2 million loans totalling more than 3 trillion shillings. The bank also proudly reports supporting school fee payments for over 1 million children of its customers and has employed “millions” of Ugandans through its operations.

“Pride Bank is now open for business, offering home loans, SME loans, USD-denominated accounts, and the best customer service we’ve always prided ourselves on,” Fetaa affirmed.

Bank officials further indicated that the new and existing products are strategically designed to align with and support the Ugandan government’s ATM strategy, which prioritizes agriculture, industrialization, tourism development, mineral development (including oil and gas), and science, technology, and innovation, demonstrating Pride Bank’s commitment to national economic growth.