Uganda Securities Exchange’s (USE) Securities Depository USE SCD has launched a digital Securities Central Depository (SCD) account opening platform in partnership with MTN Mobile Money (MoMo) in a bid to further democratize Uganda’s stock market.
This innovation is the first of its kind in Uganda and it is envisaged to simplify the process of opening an SCD account, which is a requirement for individual investors to participate in the securities market.
While launching the digitalised SCD account opening service, Paul Bwiso, the Chief Executive Officer for Uganda Securities Exchange noted that the new digital SCD account opening platform will bolster the participation of the everyday Ugandan in the country’s stock market as more people will be able to open their SCD accounts remotely.
Bwiso stated that the partnership with MTN Mobile Money has allowed the USE to further simplify access to the stock market for local investors since all MTN MoMo subscribers with a national ID can open accounts from any location.
“Last year we launched a web-based platform called the Easy portal as a self-service channel for opening an SCD account in service of our goal of facilitating convenient access to stock market services. This partnership with MTN Uganda is another stride towards achieving this goal,” Bwiso said.
Mr Bwiso further noted that the service still maintains the core operational processes of the SCD by incorporating a KYC verification process and issuance of a unique SCD account number once an SCD account has been successfully opened through the MTN MoMo platform. Additionally, new investors still retain the option to select their broker of choice.
“The Exchange is committed to creating an inclusive market and working to continually improve investors’ experience as they undertake their investment journey at the USE,” added Bwiso.
Mr Stephen Mutana, the Chief Executive Office MTN Mobile Money Limited said that the innovation is another step for MTN Mobile Money to digitalize services that are crucial to growing the financial sector in Uganda.
“As a financial service provider with services that have championed digital finance, this is a great opportunity for us to digitalize this crucial function of stock investment by simplifying it for our customers. Now that it is simpler, we believe that more people will be able to open SCD accounts and participate in the stock market as an alternative avenue of long-term investment,” Mr Mutana said.
On the MTN MoMo platform, active MTN Mobile Money customers with a valid Ugandan National Identification card shall be able to open an SCD account through their preferred licensed broker conveniently on their mobile phone.
MTN MoMo users can access the new service through the My MTN App or by dialing *165*65# and following the prompts that will enable them to open their SCD account in minutes.