Coping with the evolution of the latest types of risks in the financial sector remains a critical function for the bankers in the industry according to the Central Bank.“Intermediation margins need to reduce further and that is the message to you; they need to reduce further.

And this will require undertaking measures to reduce the operating costs. So, while we welcome technology-based financial solutions and products, it is not lost on us, that these entail inherent risks such as cyber fraud.

It is thus incumbent upon the management and the board of supervised financial institutions to adapt their risk management frameworks to mitigate those risks.” Said, Louis Kasekende – Deputy Governor, Bank of Uganda.

Consequently, the new technologies according to the new Commercial Bank of Africa Chief Executive should be an enabler in enhancing efficiency across the entire value chain of the banking business. “We have started a process of automating our banking processes so that we rely more on technology as opposed to increasing our profits as we grow our volumes.

So that cost is something that we are very happy to pass onto our end customers. Another thing we are doing around the same is to reduce the cost of the end customer is by digitization.” Said, Anthony Ndegwa – CEO, Commercial Bank of Africa.

This comes at a time when financial institutions are intensifying on their investments in financial technology and innovations so as to tap into the market offered by the current tech survey young generation.