The drive to strengthen protection of customers’ funds has been a rallying call from the Bank of Uganda Governor who wants commercial banks step up safeguards
The banking industry is considered one of the most protected businesses on the planet, yet even the strict controls have not spared the industry from new threats in the digital age.
Exim Bank of Uganda managing director, Sebhapathy Krishnan, says the rollout of new, innovative digital products will depend on the ability to handle emerging cyber threats.
"A technology-driven world is good for business. What is important is to manage risk and mitigate threats," he said during the launch of the Exim Bank Visa Prepaid Card.
Krisnan says multiple layers of security features on digital platforms are required to guarantee that customers' funds are safe from fraudsters.
Prepaid cards allow customers access to their funds any time through electronic and digital channels while de-congesting the banking halls and reducing the cost of transactions.
For instance, the Exim Bank Visa Prepaid Card allows users a maximum of sh25m or $15,000, which is accessible to customers anytime at different locations.
Transactions like online shopping are handled with ease while customers can access their money in more than six currencies across the world at low cost, making foreign travel much easier.
The drive to strengthen protection of customers' funds has been a rallying call from the Bank of Uganda Governor, Tumusiime Mutebile, who wants commercial banks step up safeguards.
In the age of technology-driven innovations, taming cyber fraud should be a top priority for banks, to ensure their customer accounts protected from cyber fraud, Mutebile advises.
According to Moses Watasa, the commissioner for information dissemination, monitoring and inspection in the Office of the Prime Minister, Uganda's regulatory environment encourages the banking industry will grow.
Wetasa says the rapid growth in the use the internet for banking purposes over the next five years, which he sees as an attraction for key players.
Tapping into the large pool of unbanked and underbanked customers, promoting the uptake of electronic and digital channels in banking is seen as a way to improve financial inclusion.
About 11% of Ugandans save with commercial banks, just about half of the 23% who save money on the mobile money platform, according to the 2018 FINSCOPE report.