Government must devise a way through which it can regulate financial technology (Fintech), according to the Financial Technology Association of Uganda.
Speaking during the Africa Fintech Festival in Kampala yesterday, Mr Peter Kawumi, the Financial Technology Service Providers Association of Uganda chairman, said government must offer guidance on the operations of Fintechs, especially in terms of fair pricing of their services.
The regulation, he said, will provide guidance in a rapidly growing sector that has eased money transactions in the last 15 years.
“We need guidance from the regulator to have fair pricing of our services,” Mr Kawumi said, noting that the sector should be supported by the National Information Technology Authority, Uganda to comply with standards and effective service delivery.
According to Mr Kawumi, much as there is a Data Protection and Privacy Act 2019, there is still need for government to come up with a framework for regulation to protect consumers from fraud and poor services.
Bank of Uganda recently said it was in the final stages of completing the National Payments Policy that would among others seek to regulate Fintechs including mobile money.
There have been some cases reported over time where some consumers have found it extremely difficult to retrieve money after it had been sent to a wrong address through Fintechs.
This has had negative impact on some Fintechs such as mobile money, one of the recent revolutions in money transfer services.
Mr Kawumi also noted that growth of Fintechs has largely been supported by the rapid growth in the population that has seen an increase in the demand for ICT-related services.
“Currently, what we are witnessing is that the demand for the Fintech apps is outstripping supply,” he said adding that whereas there is demand, there is a general lack of skills in the industry due to low technical competence.
Fintechs have been key in advancing new innovations, among them digital wallets that have been key in enhancing Uganda’s savings culture.