Israel Arinaitwe, Stanbic bank’s head of personal banking, echoes the enduring wisdom of Adam Smith from The Wealth of Nations: “The development of an economy depends on the stock of its capital.”
It is a philosophy he believes every Ugandan should embrace as they work toward building better lives for themselves and for the generations that will follow. In an exclusive interview with The Observer, Israel reflects on this principle through the lens of Stanbic Bank’s new brand campaign, Keep Growing.
He says the campaign is more than a corporate tagline, it is a national call to action.
“At Stanbic we say, Uganda is our home we drive her growth. We are responsible for the continued growth of the country. Keep Growing is tied to our purpose to ensure that we keep growing the country,” he notes, urging clients and young people to adopt a mindset of continuous progress.
Central to that growth, Israel emphasizes, is the culture of saving. Saving, he explains, is one of the most important steps an individual can take toward living a better life. He draws again from Adam Smith’s teachings.
“The development of a country, an economy, an individual depends on the stock of its capital. Capital comes from saving, and if one wants to live a better life, saving is very important because it will enable you live a better life.”
He however clarifies that saving is not reserved for the wealthy. It is a practice within reach for anyone who desires a good life. But attitudes toward saving, he observes, often stand in the way.
“The problem is people in our communities think that you save what is left, but yet that is wrong because after you finish spending, there’s nothing left.”
To illustrate the right approach, Israel shares a nostalgic image from the households of older generations. Whenever dinner was prepared, a mother would first set aside the children’s breakfast for the next day before serving the meal.
“That is what they call saving,” he says. “Before you think of spending money, you first put away a portion for saving. It is not for the super highly paid.”
Saving, in his view, unlocks productivity. It becomes a foundation upon which people can gather resources, money, tools, land, or anything needed to transform their circumstances. Israel encourages young people to be intentional about it.
“If you have started a business, I urge you to start if you haven’t, and if you are employed and you have a job, please save some money because you will need it in the future, you will need it to expand your business.”
Israel also celebrates the growing reach of financial inclusion in Uganda. With digital channels and agent banking, opening an account has never been easier.
“Banks have been brought to our doorstep,” he says. “Through the phone or through the agent you can have a bank account. There you will be able to save your money.”
Still, he reveals that about 30% of Ugandans continue to keep their money at home, where it earns nothing. He urges the public to instead take advantage of interest-bearing accounts and secure banking services.
“Your money is safe. You put it in a savings account and get interest. That means it is multiplying,” he adds.
Beyond traditional savings, Israel highlights Stanbic Bank’s investment options, including unit trusts, which allow clients to earn returns through money market funds.
“The best thing in life is not you working for money but money working for you,” he says.
He encourages young people to explore unit trusts, treasury bills, bonds, and property investments areas where Stanbic continues to support clients by developing commercial units and enabling them to earn from land and rentals.
“We are helping our clients generate and keep and get more from what they have,” he notes.
Israel’s message stretches even to newborns. He urges parents to begin saving for their children as soon as they are born.
“You can start their saving journey because we have a child account for you. That actually earns interest as well. This is something that is good for all Ugandans as we seek to keep growing.”
As the year comes to an end and the festive season sets in, Israel cautions Ugandans to celebrate responsibly and remain financially alert. He warns against extravagant spending that turns January into an unnecessarily long and stressful month.
“It is not going to be the end of the world,” he remarks humorously.
“I don’t have it on good authority, but I think January will be here. So please stay safe and remember January will be here. Don’t make it 75 days in January yet it has to be 30.”
He also reminds clients to safeguard their financial information, keep passwords secure, and report any suspicious activity.
“Just make sure that your account and your financial assets are safe, and as a bank, we guarantee you that your financial assets are safe. And we will keep it that way.”
What new things are the banks doing to encourage saving? How much interest do we pay to people saving with us and how much do we charge them when they borrow? Why charge your customer 24% interest on their loans when you pay them less then 5% on their savings? Why can’t banks lend to their customers at 18% so people are motivated to save knowing that when they want to borrow, they will enjoy reduced interest? No wonder their pens are tied on strings. We need innovation.
Where’s Moses Ayesiga former branch manager Garden City branch kampala