Bank of Uganda in its capacity as the Financial Sector regulatory body sought to promote awareness of Performance Sector Benchmarks. This would enable FIs institutions to adopt best practices by comparing their performance with other players in the financial sector hence improving on financial services delivery. Bank of Uganda thus contracted FRIENDS Consult to research, establish and promote understanding of Finance Sector Performance Benchmarks.
During the execution of the assignment FRIENDS Consult performed the following tasks:
- Determining relevant performance indicators using the metrics-focused approach and according to institution types;
- Establishing a criteria to define various peer-groups that allow meaningful comparison and benchmarking of those institutions within their respective peer group;
- Working out relevant Key Performance Indicators (KPIs) for each institution type; aligning the results with existing Key Performance Indicators of the PMT (2009);
- Establishing best practices for institutions in the industry; analysis on why and how organizations should emulate these practices to produce exceptional results;
- Validating results of the study through a stakeholder workshop and developing a framework of collecting and disseminating information to the various stakeholders on a continuous and regular basis for purposes of sustainability.
Bank of Uganda adopted recommendations made by FCL and has seen significant increase in awareness of Performance Sector Benchmarks and better delivery of financial services by FIs.