Arthur Isiko, Managing Director of Bank of Africa Uganda, has underscored the transformative potential of Uganda’s fintech sector, emphasizing evolving regulations, cross-sector collaboration, and homegrown innovation as key drivers of financial inclusion. Speaking at the launch of the “Appsolutely Eassy” campaign by Bank of Africa Uganda, he said that with regulatory reforms and business affiliations, there has been an immense improvement in the fintech market in the country as the two create more investment opportunities and render better services to Ugandans.
Isiko noted that updated regulations now enable fintechs to integrate with traditional financial institutions, a shift from earlier policies that “locked out” innovators. “The more fintechs we have that are enticed to join with the financial institutions, the more is the ability of Ugandans to be innovative, to explore, and to offer more services than those available today, and for tomorrow that we cannot even predict,” he said.
This regulatory expansion, guided by the Central Bank of Uganda and the Uganda Communications Commission (UCC), aims to make digital financial services accessible throughout Uganda, although Isiko says “a larger investment is required” to bridge the infrastructure divide, especially in the rural communities. “Undoubtedly, more action is called for today. There is a lot of investment needed,” Isiko remarked.
He emphasized that the partnership between banks, telecom operators, and utility providers is fundamental in the development of seamless payment platforms. “We are constantly in touch with the telco as we are working together to introduce the best payment platforms,” he said, illustrating digital accounts that are shared with clients.
Channels like merchants, agents, and global providers of services are also seeing increased digitalization. Part of the reason is that the connection of the three sectors in the economy affords a lot of convenience. However, Isiko also noted customer convenience among the main benefits that companies have been walking hand in hand to scale such services of digital accounts, a clear example which includes merchant acquisition through agents and global business service providers.
Isiko spotlighted Ugandan-developed solutions addressing everyday challenges. One example: a fintech platform enabling parents to digitally transfer school pocket money, which students access via contactless “tap” systems at school canteens. “Young Ugandans are creating innovations to simplify day-to-day activities,” he said, applauding innovators for tackling everyday challenges through technology. Such advancements, he argued, underscore the need to nurture local talent while ensuring regulations balance innovation with security.
Isiko, on the one hand, is advocating for the need to regulate the laws that are simplified to be able to achieve the objective of increasing fintech participation, and, on the other hand, we must take into consideration the risks that are possible. He warned that innovative practices that do not respect the security of the people’s funds in the case of the occurrence of theft or loss of the money are responsible for the downfall of such provisional measures. “Innovation without considering security concerns in handling public money invites disaster,” he cautioned, that innovation must be balanced with robust security measures.
“If you think of an innovative solution equivalent to the management of public funds absent of security considerations, then, no doubt, calamity is knocking at the door,” he underscored. He also suggested a better legal framework wherein the developers of fintech are quick to bring new applications to the market, but with the full safety of the users ensured.
The Uganda fintech industry has the full support and endorsement of Isiko, as he wants every local innovator to join the sector. He said that the future vision of inclusive finance will be realized through joint regulation and the right allocation of funds that will extend the use of digital platforms to the unbanked. “The number of opportunities is multiplying,” he stated. “Since the providers are constantly growing, we can continue to realize even more.”
As the fintech sector of Uganda continues to grow, the actors in this niche are challenged by the diminishing support for next-generation solutions and the growing distrust of the public. Isiko reckons that this situation can be turned around by way of unceasing dialogue and common aspirations.
If you want to know more about the “Appsolutely Eassy” campaign, here is the LINK.
