KAMPALA - Technology holds the key to reducing costs in the financial sector, enhancing service delivery, and reaching the unbanked, according to Bank of Uganda (BOU) Deputy Governor Augustus Nuwagaba. Speaking at the Annual Financial Inclusion and Financial Literacy Forum 2026 at Four Points by Sheraton in Kampala on Thursday, Nuwagaba emphasized that technology offers opportunities to reduce costs, improve service delivery, and reach underserved populations.
AI and Open Banking to Shape Future of Banking
Nuwagaba highlighted artificial intelligence (AI) and Open Banking as critical areas that will determine the future of banking globally. "Artificial intelligence can support fraud detection and service provision. Open Banking and Open Finance may create opportunities for customers to benefit from the secure, consent-based sharing of their financial information," he said.
Risks Must Be Addressed Early
However, Nuwagaba cautioned that these gains come with risks that must be addressed early. He acknowledged that cyber threats are a constant concern for the central bank. "These opportunities require careful attention to safeguards. Customers need to understand how their data are used and how decisions affecting them can be challenged. Privacy, security, fairness, and accountability must be considered from the outset," he added.
The forum, which brings together stakeholders from the financial sector, aims to discuss strategies for enhancing financial inclusion and literacy in Uganda. Nuwagaba's remarks underscore the delicate balance between leveraging technology for financial innovation and ensuring consumer protection.
As Uganda's financial landscape evolves, the BOU's stance on technology and its risks will be pivotal in shaping policies that foster innovation while safeguarding customers. The Deputy Governor's call for early attention to safeguards resonates with global trends where regulators are grappling with the challenges posed by rapid technological advancements.
Experts at the forum are expected to delve into how AI and Open Banking can be harnessed to drive financial inclusion while mitigating risks. The discussions will likely inform future regulatory frameworks and industry practices in Uganda.
Financial inclusion has been a priority for the BOU, with various initiatives aimed at bringing more Ugandans into the formal financial system. Technology, as Nuwagaba noted, is a double-edged sword that must be wielded with care.
As the forum continues, stakeholders will exchange insights on how to navigate the opportunities and challenges presented by technological advancements in finance. The outcomes of these discussions are anticipated to shape the future of banking in Uganda and beyond.
