Fintechs drive up bank accounts to 23 million

The Uganda Bankers’ Association (UBA) has said the application of Fintech services in the financial system has driven up the number of bank accounts to 23 million and has made financial services more accessible and cheaper. 

Financial technology, or Fintech has enabled innovation in financial services, especially in payments and money transfer. 

Speaking during a media briefing ahead of the sixth Annual Bankers Conference, which begins next week, Mr Wilbrod Owor, the UBA executive director, said, Fintechs, which currently total to about 26 payments service providers licensed by Bank of Uganda have positively impacted the financial sector ecosystem, increasing the number of bank accounts from just seven million in 2016 to more than 23 million. 

This, he said, had also resulted into increased digital lending, with many Fintechs now able to process micro-loan facilities just within minutes.   

However, Mr Owor said that much as the industry has expanded and allowed a lot of innovation, the changes have come with cyber risks, which has seen a lot of financial service providers and customers exposed to fraud. 

“So, we need partnership and collaboration between the banks, Fintech companies and regulators to monitor and guard against the increased threat,” he said, noting that regulation and supervision of Fintechs is becoming increasingly important to ensure stability of the financial system and to protect the rights of users.

Ms Sarah Arapta, the UBA chairperson, who is also the Citibank managing director, said Fintechs are changing the face of banking and financial services by creating both access and innovation of financial products.

Fintechs have been key in advancing digital lending, which plays into the larger agenda of easing access to credit.  

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