The Bank of Uganda has urged stricter oversight of artificial intelligence, Open Banking and other emerging financial technologies, warning that rapid innovation risks exposing consumers to privacy violations, unfair treatment and financial instability. Deputy Governor Prof. Augustus Nuwagaba said technological advances were reducing the cost of financial services and extending access to underserved communities, but stressed these benefits must come with robust consumer protection. He made the remarks on Thursday while addressing the Annual Financial Inclusion and Financial Literacy Forum 2026 in Kampala.
Nuwagaba acknowledged that artificial intelligence could strengthen fraud detection and service provision, while Open Banking and Open Finance could allow customers to benefit from secure sharing of their financial information. However, he warned that customers must understand how their personal financial data are collected and used, and have the ability to challenge decisions affecting them. "Privacy, security, fairness and accountability must be considered from the outset," he said. The Deputy Governor also called for careful examination of virtual assets, stablecoins and tokenisation on consumers and financial stability.
The central bank official emphasised that technological innovation should not exclude people without smartphones, reliable internet connectivity, digital skills or acceptable identification documents. He challenged financial institutions, fintech companies, telecommunications operators and regulators to work together to ensure emerging financial products are affordable, accessible and trustworthy. Financial literacy must evolve to equip consumers with knowledge to navigate increasingly complex digital financial services and protect themselves against fraud, Nuwagaba said. He also stressed the responsibility of financial service providers to explain charges and contractual terms clearly and establish accessible complaint mechanisms.
Beyond technology concerns, Nuwagaba said Uganda needed a financial system capable of supporting productive sectors including agriculture, manufacturing, tourism, mineral development and information technology. Inclusive financing could help mobilise savings, reduce transaction costs and enable businesses to invest, expand and create employment in support of the government's Ten-Fold Growth Strategy, he said. The Bank of Uganda was strengthening its regional role, having been elected Vice-Chair of the African Financial Inclusion Policy Initiative for a two-year term in July 2026 in Angola and set to host the initiative's conference in Uganda in 2029.
For savers and borrowers in Uganda, stronger protections mean financial technology will need to balance innovation with safeguards that prevent misuse of personal data and ensure access remains fair and affordable. The forum is expected to produce three to five practical commitments with responsible institutions and implementation milestones under the existing National Financial Inclusion Strategy II coordination framework.