Banker says data to play role in strengthening financial inclusion
Rutahigwa said companies will rely on consumer behaviour to provide relevant solutions that address their needs.
For many years, there have been deliberate efforts by the government of Uganda and the private sector players to drive financial inclusion in the country by taking financial services closer to the people and affordably.
About two decades ago, commercial banks were the leading provider of financial services in their mortar and brick banking halls that were majorly stationed in leading urban like Kampala, Jinja, Gulu, Mbarara, Fort Portal, Mbale and others operating for limited hours of daylight.
But increased industry competition saw the banks open up more branches in smaller towns across the country. This was hailed by industry leaders including the central bank, the financial services providers regulator, as a move in the right direction to promote financial inclusion.
This move was energized by the coming of technology where banks introduced the internet and mobile banking. The banks became more innovative and they enabled customers to access their bank accounts on their computers and mobile phones.
It wasn’t long before telecom companies introduced what has come to be known as mobile money – this enabled customers to save and transfer money from one phone holder account to another.
Mobile money also enabled customers to pay bills and make purchases from their mobile money accounts and wallets.
These innovations looked like they would steal customers from commercial banks. This, however, has not been the case, as the banks and telecoms and Fintechs have been able to synch technologies to enable say a bank customer to send money as ‘mobile money’ or from a fintech to send money to his or her saving account in the bank.
But these advancements in technology have come with security fears as cyber breaches can easily expose customers’ money to fraudsters. These fears have called for more strict cyber security features.
The regulators like the Bank of Uganda, Uganda Communication Commission, Financial Intelligence Authority, Parliament and others have made adjustments in the laws, regulations and regulatory frameworks to protect consumers of financial services.
While these innovations have enabled customers to get served in their comfort and with ease, the financial services providers are not only able to easily interact with their customers but they are also able to access data that can aid them in tailor-making services that solve the needs of customers.
Speaking today at the 9th Digital & Financial Inclusion Summit organized by Hipipo at Kampala Serena Hotel, Moses Rutahigwa, the Head of Consumer, Private & Business Banking at Standard Chartered Bank Uganda said data will play a huge role in strengthening financial inclusion.
Rutahigwa said companies will rely on consumer behaviour to provide relevant solutions that address their needs. For example, today’s consumer is tech-savvy and requires financial products that are technology enabled.
While at it, the banks and other financial services providers will have to be security conscious, at least according to Lydia Nakamya, Head of Digital Banking & Partnerships at Standard Chartered Bank, who also made a presentation at the Summit.
“Security is very important as we push for financial inclusion. Awareness and sensitization especially on the customer’s side is the only way we can combat cyber fraud,” Nakamya noted.
The financial inclusion forward advance, now that it requires technology tools like the internet to have an impact, has been curtailed by limited investment targeting tech infrastructure like the internet rollout across the country.
Noting this is a hindrance, the Executive Director of Uganda Communications Commission, Irene Kaggwa Sewankambo, also speaking at the Summit, said licensed telecom operators are mandated to and expect to have rolled out coverage of 90 percent for the whole country
This, according to Standard Chartered Bank’s Nakamya, will enable financial services providers to everyone and all parts of the country.
She said: “Financial inclusion is a collective responsibility. It is imperative that we reach out to the marginalized groups and bring them into the financial space.”
