Authorities has been praised for passing the Nationwide Fee Programs Invoice which is hoped to unravel a variety of monetary dangers.
The legislation which was handed in May this 12 months, regulates cost programs and issuers of digital cash.
Consultants in Monetary Applied sciences (Fintechs) now imagine the brand new legislation will allow them to have a balanced discipline for risk-free participation.
Talking at a Fintech Symposium at Lodge Serena on Wednesday, Peter Kawumi, the chairman of Monetary Expertise Service Suppliers’ Affiliation (FITSPA) stated the legislation got here at a very good time the place Monetary service suppliers in Uganda wanted safety.
“The potential to reach consumers at a large scale and accelerate financial inclusion in the country and abroad has improved economies and created more jobs. However, without adequate supervision and regulations, the rapid growth in the sector may lead to other risks such as money laundering, risks of data breaches due to inadequate security measures, there is also a risk of loss of consumer trust due to poor practices like non-pricing transparencies,” he stated.
In response to the Government Director of Monetary Deepening Uganda, Mr Rashmi Pillai, Fintechs are actually being utilized by Ugandans on daily basis and basing on statistics, four million Ugandans had been financially included between 2013 to 2018.
Mackay Aomu, Director, Nationwide Fee Programs at Bank of Uganda famous that the rules are essential as a result of they describe how cost service suppliers enter the funds area, their conduct and so they additionally present for an orderly audit.
Enid Edroma, Basic Supervisor, Company Affairs at Cellular Phone Community (MTN) additionally welcomed Bank of Uganda’s transfer to place up rules controlling Monetary Fee System.
“We’re happy that Bank of Uganda has taken this method and on the finish of the day, the client would be the beneficiary of this.
“MTN is required by the law to separate its fintech business from its general business. We have commenced this process. We have already started to see the benefits of having to separate the two. Our customers will get more clarity” stated Edroma.
Nonetheless, specialists additionally requested Bank of Uganda and the federal government to discover a means of regulating different huge monetary service suppliers like Google, Alibaba, Amazon, eBay and many others which additionally supply digital providers throughout the nation.