By Ruth Kagabane
Africa-Press – Uganda. At Absa Bank Uganda’s recent Data Privacy Workshop, held in collaboration with representatives from the Bank of Uganda, the Personal Data Protection Office, and industry players across finance, fintech, and insurance, one message stood out clearly: data privacy is not just a legal requirement; it is a cornerstone of customer trust and brand integrity.
In today’s digital economy, data is the world’s most valuable currency. Yet as organisations compete to harness its potential, customers are becoming increasingly cautious about how their information is collected, stored, and shared. The critical question is no longer who has the data, but rather who can be trusted with it.
For financial institutions, that trust forms the bedrock of brand equity. Each time a customer shares personal information, they extend faith in the institution’s integrity. How that data is handled — securely, transparently, and ethically — determines whether confidence grows into loyalty or erodes into doubt. Privacy, therefore, is not just protection, it’s persuasion.
A Rapidly Evolving Financial Landscape
Uganda’s financial sector is undergoing rapid digital transformation. According to the 2024 National Housing and Population Census, 43% of Ugandans aged 10 and above — approximately 13.6 million people — now own mobile phones.
While this digital shift enhances access and convenience, it also introduces complex challenges around data privacy. Every transaction, account opening, and loan application generates a digital footprint. This information enables banks like Absa to deliver personalised, efficient, and innovative services, but with that power comes profound responsibility.
This responsibility extends beyond regulatory compliance. As custodians of sensitive data, financial institutions must engage policymakers, peers, and regulators to strengthen collective understanding of privacy as a fundamental customer right. A single breach can destroy the trust that took years to build.
In an era of heightened cyber threats, robust data protection is not optional, it’s essential. Within the financial industry, a strong compliance culture builds a reputation for reliability and security, turning ethical practices into tangible business growth.
An Interconnected Economy and the Global Data Flow
Uganda’s economy is becoming increasingly interconnected. The Economic Policy Research Centre reports that in the year to January 2024, the country received USD 1.42 billion in remittance inflows, with 1.5% of households benefiting directly.
This rise in cross-border trade and international payments depends on the secure and seamless flow of data across jurisdictions, a process that must be governed with precision. Compliance with global data transfer frameworks ensures customer information remains protected, regardless of where it travels.
Close collaboration with regulators such as the Bank of Uganda and the Personal Data Protection Office is vital to navigating this complex cross-border landscape responsibly and effectively.
At Absa Bank Uganda, data privacy is more than a compliance mandate; it represents our commitment to protect customer information and comply with regulations. We have built a culture where data protection is everyone’s responsibility, from the branch floor to the boardroom. When customers trust that their data is safe, they engage, transact, and grow with confidence.
Beyond Compliance: The Digital Trust Imperative
According to Cisco’s 2021 Consumer Privacy Survey, 86% of consumers care deeply about data privacy, while 78% would switch providers after a breach (Ping Identity, 2018). In other words, trust is the new currency of competition.
A strong privacy posture doesn’t just mitigate risk; it enhances brand reputation, customer retention, and long-term profitability.
Innovation with Integrity
Emerging technologies such as Artificial Intelligence (AI) and machine learning hold immense promise, from detecting fraud to improving customer experience. Yet their power must be harnessed responsibly.
Algorithms should be designed with privacy-by-design principles, ensuring they remain fair, unbiased, and transparent. Technology must enable trust, not compromise it.
At Absa, we embed privacy controls into every digital solution, ensuring that innovation and protection evolve together. We also hold our third-party partners to the same standards because, as the saying goes, a chain is only as strong as its weakest link.
The Cost of Neglect
Failure to safeguard data carries severe consequences. Under Ugandan law, violations can attract fines of up to 2% of annual gross turnover or imprisonment of up to ten years. Yet, the loss of customer trust can be even more damaging. Reputation once compromised takes years to restore. That is why proactive data governance is both an ethical obligation and a sound business strategy.
Towards a Data-Secure Future
Building a data-secure financial ecosystem is a continuous journey, requiring sustained investment in technology, regular staff training, and transparent engagement with customers.
By working collaboratively across banks, regulators, and policymakers, Uganda can cultivate a digital economy where innovation and privacy coexist. In doing so, we not only strengthen compliance; we build a trusted, resilient, and future-ready financial system — one that empowers every Ugandan to participate confidently in the digital economy.
The author is the Head of Compliance, Absa Bank Uganda
Source: Nilepost News
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