Sharing digital infrastructure will reduce cost of financial services: Experts
Above the need for greater economic activity to fuel demand for financial services, partnership in key areas like payments and big data can drive financial inclusion
Various experts in the financial sub-sector have explained that in order to further reduce the cost of financial services to customers especially in the digital era there is need create partnerships between financial institutions and other partners including government and private sector to create a shared digital infrastructure aimed at deepening access to financial services.
This was revealed by experts during virtual Annual Bankers Conference that started from 26th to 27th July 2021 on the theme “Redefining financial inclusion & deepening access to financial services."
In the opening remarks of the Vice Chair Uganda Bankers Association (UBA) Sarah Arapata, she highlighted that the conference will discuss the critical role the 4th Industrial Revolution plays and how to leverage it as a driver of economic development in Uganda.
“The annual conference is on an agenda to form partnerships, share experience and improve the financial service industry. We would like to highlight the critical role that needs to be played by all stakeholders to harness the opportunity of the 4th Industrial Revolution” she said.
Joseph Lutwama, The Director, Programs at Financial Sector Deepening Uganda said that in order to provide cheaper but affordable services to customers, the financial sector players need to reduce cost like sharing common infrastructure to increase availability.
“Partnerships ease costs of services and provide opportunities for financial services to increase customer base in countries like Uganda that have shown low interest in participating in financial services. Above the need for greater economic activity to fuel demand for financial services, partnership in key areas like payments and big data can drive financial inclusion” he said
The CEO, Laboremus Uganda Ltd, Timothy Musoke advised that in order to support the infrastructure that defines better placement, finical institutions should invest in digital tools anddata protection.
He added a law on data protection that was passed should emphasize that the custodians of this data and enforcers educate customers on rights when it comes to providing consent in order to build trust in the banking industry.
“I call upon a strong implementation of the data protection and privacy Act 2019 to protect user data going into the 4th Industrial Revolution. Financial institutions are aware of what they need to do as far as digital transformation is concerned. If you’re going to service customers remotely, you need to invest in digital identity because they’re not going to come to you physically” he said
Ivan James Ssettimba, Head Africa Office, Alliance for Financial Inclusion (AFI) called for rolling out of financial literacy campaigns with urgency so that the financial services and customers adapt and protect appropriately when it comes to the 4th industrial revolution.