Professor Emmanuel Tumusiime Mutebile, Governor of the Bank of Uganda (BOU) advised banking industry players to develop broader investment strategies instead of focusing on short-term profits.
Mutebile was addressing members at the Uganda Bankers Association (UBA) first virtual annual conference held in Kampala today, Tuesday, July 27, 2021.
“As a banking industry, we should avoid short-term profit strategies and instead adopt long-term strategies that do not compromise our services to our clients. We all need to do what it takes not only to survive, but also to thrive in this new revolution, ”Mutebile said.
He noted that bankers can use the opportunity presented by the COVID-19 pandemic to transform the industry.
These opportunities, he said, include the adoption of new innovations and technologies such as; online banking, mobile banking, contactless ATMs, among others.
“The digital revolution has offered opportunities for financial inclusion and the provision of financial services to people, regardless of income or location. Customers can transact transparently and quickly, ”he said.
“The dynamism of FinTechs presents regulatory challenges. How can we encourage financial innovation without compromising the safety of people in the financial space, ”he added.
The two-day conference was organized under the theme “Bend But Don’t Break: How the Financial Sector Can Thrive in the Era of the 4th Industrial Revolution”.
Speaking at the reception, Mathias Katamba, President of UBA who is also Chairman of the Board of Directors of Dfcu, highlighted the disruptive nature of the Fourth Industrial Revolution and the contribution it made in propelling the services financial at the speed of mobiles and the Internet.
He said digitization has impacted economic growth through inclusive finance, allowing unbanked people to enter the formality through retail electronic payment platforms, virtual savings technology platforms and credit offer.
“As a banking sector, we have further submitted very specific proposals to the Central Bank and the Ministry of Finance on medium and long term measures to protect people and companies / sectors that have obtained credit facilities from financial institutions, ”Katamba said.
In his opening speech, Dr Patrick Ngugi Njoroge, the governor of the Central Bank of Kenya encouraged actors in the banking sector to engage in the industrial revolution.
“Overall, there are four (4) main effects that the Fourth Industrial Revolution has on business, namely; customer expectations, product / service improvements, collaborative innovation and organizational structures and its employees, ”he said.
Njoronge said the theme of this year’s conference is highly relevant in these unprecedented times and presents both opportunities and challenges not only for the financial sector but for all other sectors and spheres of life around the world. .