As financial services get more sophisticated, financial institutions in East Africa have been told to upgrade their digital systems to survive in business and guard against cyber-attacks by fraudsters.
Similarly, regulators in the region have been advised to keep in pace with technological changes to provide effective regulation and insure the soundness and safety in the financial system.
This means regulators need to grapple with a number of issues to respond to the impact of technological advances on the financial sector.
In a speech read for him by Finance minister Matia Kasaija during the East African Microfinance summit held in Kampala last week, Prime Minister Ruhakana Rugunda, said: “… firms need to articulate a clear digital strategy and allocate the right amount of resources to survive and thrive in the digital era.”
He added: “Furthermore, regulators should remain abreast of these shifting dynamics in order to ensure the soundness and safety of the entire financial system ecosystem.”
Dr Rugunda said with the evolving technological landscape, global connectivity and numerous customer touch-points, financial services firms are under increased pressure to secure their networks from cyber –attacks.