- July 22, 2021
- Posted by: admin
- Category: Current News
Technology is transforming financial systems around the world at an unprecedented rate, generating new opportunities and new risks for the financial sector. The financial technology (Fintech) revolution started with a wave of rapid technological transformations that gathered pace in the 1990s. Initially, this transformation was generally viewed positively hence most jurisdictions adopted a laissez-faire deregulatory approach to the regulation of financial sector innovations. However, post the Global Financial Crisis of 2007 – 2008, some regulators started to be suspicious of financial technologies due to the role that financial engineering played in fomenting the crisis. Nevertheless, technology has continued to advance at an even more rapid pace, culminating in the proliferation of Fintech companies and digital financial services across the globe.
The speed with which Fintech and digital financial services are spreading requires regulatory authorities to take measures to balance the objectives of financial stability and consumer protection with the objective of promoting growth and innovation. In this regard, regulatory authorities are collaborating with private sector players to develop and adopt new approaches to regulation in order to promote the orderly adoption of Fintech and digital financial services. Against this background, MEFMI’s Business Development Unit (BDU) collaborated with the Bank of Uganda Financial Markets Development Committee (FMDC) to deliver a workshop on Fintech from 14 – 25 June 2021.
The workshop covered a broad range of topics including digital financial services, distributed ledger technology and block-chain; virtual currencies, digital payments and marketplace lending; artificial intelligence and machine learning, cybersecurity, consumer protection and regulation of Fintech. A total of 40 officials from the Bank of Uganda, the Capital Markets Authority (CMA), the Deposit Protection Fund and commercial banks in Uganda attended the workshop. The officials are expected to use the acquired knowledge to champion the adoption of Fintech at their respective institutions as well as contribute to shaping the Fintech policy and regulatory environment in Uganda. Broader adoption of Fintech will improve access to and lower the cost of financial products leading to improved financial inclusion and financial sector development in Uganda.
The workshop was facilitated by two independent consultants, Dr. Wale Oki and Mr. Eugene Chaduka.
Prepared by Noel Mahombera