KAMPALA- The Governor, Bank of Uganda, Prof. Emmanuel Tumusiime-Mutebile, Tuesday took financial services sector players through a long list of how institutions and individuals can maneuver in these times.
Speaking under the theme: Bend but Don’t Break: How Players in the Financial Services Sector can thrive in the Era of the 4th Industrial Revolution”, Prof. Tumusiime-Mutebile spoke at length at the 4th Annual Bankers’ Conference 2021 in Kampala, describing the annual event as timely.
The Governor’s first few words touched on technology and innovation.
“You are all aware that recourse to technological innovations worldwide has been critical in navigating through the hurdles conditioned on the financial sector by the Covid-19 pandemic, he started.
“Financial institutions have had to re-engineer their business models and adopt new and more efficient business operational frameworks in order to ensure not only the seamless accessibility of financial services, but also their continued sustainability,” he counseled.
Admitting that the 4th Industrial Revolution (4IR) is set to fundamentally alter the financial sector landscape, Mutebile observed that as bankers, there is no clear knowledge yet about how far these technological innovations will unfold.
“The changing financial ecosystem has however introduced both opportunities and risks. In particular, the digital revolution has offered opportunities for financial inclusion and for the provision of a wider suite of financial products and services, regardless of income and location,” he said.
Mutebile observed that whereas Africa and the East African Community (EAC) still lag behind in the utilization of financial technology (Fintech), the phenomenal growth in mobile money services has been critical in increasing the financial services outreach, which is crucial for poverty eradication and inclusive economic growth.
“The digital revolution has also led to a dramatic reduction in the operational costs and improved efficiency in the provision and delivery of financial services.”
Because of these innovations, Mutebile acknowledged that: “customers are able to transact and interact in a flexible, seamless and real-time manner. At the same time, it has improved the financial service providers’ understanding of customer behavior and needs, allowing for personalization of financial services.”