Lucrezia Biteete, an expert in financial inclusion and former managing director at Laboremous, has urged financial technology companies (Fintechs) not to shy away from commercializing data collected from platform users.  

Personal information, which is being referred to as the new oil has raised conflict between banks and fintech players. Some of the information allows Fintechs to create more customized services for customers.

"The data market is the future. Don't shy away from selling and buying data. The protection framework is not there to hinder the data market but rather to make it safe," Biteete said.

She was speaking during the Fintech Annual Conference organized by Financial Technology Service Providers’ Association (FISTPA).

Technology advances in the financial service industry have led to fundamental disruption in the way financial services are conducted.

Stephen Mutana, the managing director, MTN Mobile Money Uganda Limited listening as Lucrezia Biteete speaks

The proliferation of mobile devices, along with smart devices, that are always connected, storing and sending information back and forth have raised issues of data privacy. However, much of the data is shared willingly by some users.

In 2019, President Yoweri Museveni assented to the Data Protection and Privacy Act. The law led to the establishment of a Personal Data Protection Office (PDPO) to regulate the use of personal data collected by banks and Fintechs.

In her remarks, Stella Alibateese, national director at PDPO said all individuals and companies collecting data including Fintechs need to comply with the current data protection regulations.

“There are seven principles that guide compliance to the data protection regulations such as accountability, which queries how the data is handled; transparency, which speaks to simplicity and accessibility and informs customers about their rights, security among others,” she said.

Stephen Mutana, the managing director, MTN Mobile Money Uganda Limited said there is need for increased consumer education. He said this is one of the crucial pillars for consumer production as the pandemic has increased the use of digital financial services.

Maxime Dieudonne, Co-Founder at SafeBoda said there is need for FISTPA to help members to fully comply with current market regulations.

Mackay Aomu, director national payments at Bank of Uganda said the central bank is planning to set up a vibrant office within its premises for Fintechs.