Bank of Uganda urges banks to embrace fintech revolution

KAMPALA, Uganda – The Bank of Uganda’s Deputy Governor, Augustus Nuwagaba, urged financial institutions to embrace the burgeoning fintech revolution, stating it is essential for transforming Uganda’s financial landscape, boosting inclusion and promoting seamless transactions.

He acknowledged that while fintech offers immense growth opportunities, it also necessitates thoughtful consideration and proactive risk management.

Nuwagaba’s remarks were delivered by David Kalyango, the central bank’s director of supervision, during the official launch of NCBA Bank Uganda’s refurbished Nakasero branch and new head office. He emphasized that bankers and financial professionals are responsible for embracing these changes and ensuring innovations are harnessed to secure a financial future for the nation.

The Bank of Uganda remains committed to facilitating a smooth and orderly adoption of innovations to enhance financial inclusion, strengthen operational and policy frameworks, and foster a resilient financial sector that supports Uganda’s socioeconomic transformation.

“The financial services sector is evolving rapidly, driven by technological advancements and regulatory changes, and [banks] need to be on the move,” Nuwagaba stated.

He specifically commended NCBA for its agile commitment to improving operational efficiency through digital platforms, emphasizing that such efforts extend beyond mere infrastructure investment. This is a strategic step towards enhancing customer experience and reaffirming NCBA’s dedication to excellence in financial service delivery. He noted that NCBA is well-positioned to serve a diverse clientele, including local, regional and multinational corporations, as well as small and medium-sized enterprises (SMEs) operating in trade, manufacturing and agriculture.

Nuwagaba also disclosed that the Bank of Uganda is investing in the digital transformation of its supervisory processes, with consultations anticipated in June. This initiative aims to supplement other regulatory strides, such as the Financial Institutions (Corporate Governance) Regulations 2024, designed to support financial sector stability.

Mark Muyobo, NCBA Uganda’s chief executive officer, described the launch as a powerful reaffirmation of the bank’s dedication to building lasting relationships. He stated that the relocation to Twed Towers and the refurbishment of the Nakasero branch underscore NCBA’s commitment to delivering an enhanced customer experience. These developments are part of broader efforts to support Uganda’s growing digital economy and enhance customer convenience, he added.

The bank’s performance demonstrated strong growth across key financial indicators, including increases in net loans and advances, customer deposits, and operating income, leading to significant profit before tax. NCBA also doubled its asset finance portfolio and significantly expanded its loan book, achieving considerable gains in corporate and premier banking. New offerings in trade finance, mortgages and bancassurance were also introduced.

“Our new head office features cutting-edge digital banking facilities and a dedicated premier lounge for our premier customers,” Muyobo said. “NCBA also plans further investments in a revamped mobile banking application and an upgraded corporate and institutional banking platform.”

The bank’s partnership with MTN Uganda on the MOKASI platform continues to provide a significant competitive advantage. The platform has disbursed over 2.8 trillion shillings and now serves nearly 14 million active customers as of April.