Professor Emmanuel Tumusiime Mutebile, the Governor of the Bank of Uganda (BOU) has tipped players in the banking sector to draw broader investment strategies instead of focusing on short term profits.
Mutebile was addressing members during the first virtual annual conference of the Uganda Bankers Association (UBA) held in Kampala today, Tuesday July 27, 2021.
“We as the banking sector should avoid short term profit strategies but rather adopt long term strategies that do not compromise our services to our clients. We must all do the right thing to not only survive but also thrive in this new revolution,” Mutebile said.
He noted that Bankers can utilize the available opportunity brought by the COVID-19 pandemic to transform the sector.
Such opportunities, he said, include adopting new innovations and technologies like; online banking, mobile banking, contactless ATMs among others.
“The digital revolution has offered opportunities for financial inclusion and offering of financial services to people regardless of income or location. Customers are able to transact in a seamless and timely manner,” he said.
“The dynamism of Fintechs presents regulatory challenges. How can we encourage financial innovation without compromising the security of people in the financial space,” he added.
The two-day conference was organised under the theme “Bend but don’t break: How the financial sector can thrive in the era of the 4th Industrial Revolution.”
Speaking at the function, Mathias Katamba, the Chairperson of UBA who also doubles as the Chairman Board of Directors at Dfcu, highlighted the disruptive nature of the fourth industrial revolution and the contribution it has made in propelling financial services to move at the high speed of mobile and the internet.
UBA President, Mathias Katamba
He said that digitization has impacted economic growth through inclusive finance, enabling the unbanked to enter formality through retail electronic payments platforms, virtual savings and credit supply technological platforms.
“As the banking sector, we have further submitted very specific proposals to the Central Bank and Ministry of Finance on medium to longer term measures to cushion persons and businesses/sectors that took credit facilities from financial institutions,” Katamba said.
In his key note address, Dr. Patrick Ngugi Njoroge, the Governor of the Central Bank of Kenya encouraged players in the banking sector to engage in the industrial revolution.
“On the whole, there are four (4) main effects that the Fourth Industrial Revolution has on business namely; customer expectations, product/services enhancements, collaborative innovation, and organizational structures and its people,” he said.
Dr. Patrick Njoronge, Governor Central Bank of Kenya
Njoronge said that the theme for this year’s conference is very relevant during these unprecedented times and presents both opportunities as well as challenges not only for the financial sector but all other sectors and spheres of life globally.
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