The pace on technological innovation and usage by financial institutions for their benefit for efficient business operations and profitability is running into test according to the sector regulator.
Financial Institutions in the country have an annual expenditure running into Billions of shillings directed towards technology upgrades and related security measures. But along with that comes fraud valued at 10 million dollars. This is what is giving sleepless nights to the regulator technology not withstanding.
“The integrity for our financial system as commercial banks en devour to play their intermediation role, and leverage technology there is need to adopt risk management frameworks to close as much as possible any loopholes that could be exploited for fraud, money laundering and terrorism financing ” said Dr Louis Kasekende- Deputy Governor, Bank of Uganda.
The Uganda Bankers’ Association, has in the past three years widened its campaign on service delivery around technology platforms. “We will use technology and partnerships we are as we speak now working with micro-finances, we have engagement with the telecoms now to use some of their bigger Agents to take services to the lowest levels ” Wilbroad Owor ED. Uganda Bankers’ Association said.
Cyber relates crimes in Uganda more targeting financial institutions have since been rated at nearly $ 10 million (Approx UGX 36 billion), by reputed audit firm Deloitte in their recent financial crime survey.
“This is something that, if we don’t control it we might see de-risking by especially the international banks and our banks denied correspondent banking. So if you ask me what keeps me awake at night, that is one of the biggest issues that keeps many of us withing the banking industry awake.” Deputy Governor, Bank of Uganda added.
Deloitte’s study in financial crimes across East Africa place Kenya and 72%, followed by Tanzania at 71% and Uganda at 67%
