Africa-Press – Uganda. Bank of Uganda has said financial institutions must leverage technology to provide 24/7 operations.
Speaking at the Annual Bankers Conference in Kampala early this week, Dr Michael Atingi-Ego, the Bank of Uganda deputy governor, said that time of banks operating during specified time was over, noting that technology has reshaped banking and related system.
For long banks have been operating a routine schedule of between 9am and 4pm. This had been adjusted from the early 2000s when most financial institutions operated between 9am to 2pm.
Therefore, Dr Atingi-Ego said financial institutions must emulate Fintech that provide banking services more innovatively, efficiently, and often at lower fees.
“To avoid obsolescence, banks have embraced digitisation and are promoting branchless banking. I dare say that this trend will continue as technology evolves to offer more innovative ways of providing banking and financial services more conveniently, affordably, and universally inclusive,” he said, noting that technology-enabled innovation is transforming financial services by producing new business models, applications, processes and products that enrich access to safe and secure storage of money.
Easier access to credit
Technology has also enabled easier and quicker access to credit while also providing payments, saving and effective financial management.
It has also led to creation of Fintechs that have reshaped banking and financial services, enabling virtual operations that have been key in the transformation of banking.
Dr Atingi-Ego also indicated that Bank of Uganda was developing capacity to leverage big data analytics to improve financial and economic modelling and forecasting for monetary policy and market operations, as well as adopting technologies for real-time banking regulation and supervision.
“We are also working with Uganda Bankers’ Association on a strategy to promote e-payments for a cashless economy,” he said, noting that as more financial transactions move online reliance on IT infrastructure will grow, which calls for enhanced safeguards against cyber security.
Cybersecurity and IT security have become increasingly important, amid growing risks resulting from a shift from manual to digital operations, which Dr Atingi-Ego warned have the potential to disrupt operations of the entire sector.
Ms Sarah Arapta, the The Uganda Bankers’ Association chairperson and Citibank managing director, said technology enabled innovations in banking and financial services have accelerated blurring boundaries that for a long time had impacted financial inclusion.
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