Bank of Uganda
Remarks by
Prof. Emmanuel Tumusiime-Mutebile,
Governor, Bank of Uganda
Launch of Standard Chartered Bank (U) Limited's Client Digital
initiative
Kampala Serena Hotel
29 January 2019
Honourable Minister of Information,
Communication Technology and National
Guidance, Hon. Frank Tumwebaze
The Board of Directors, Standard Chartered Bank
Uganda Limited
The Chief Executive Officer, Standard Chartered
Bank Uganda Limited
Management & Staff of Standard Chartered Bank
Uganda Limited
Distinguished Guests in your respective capacities
Ladies and Gentlemen,
It is my distinct pleasure to be part of this great
evening as Standard Chartered Bank yet again
unveils an innovative and revolutionary digital
banking initiative.
I take this opportunity to congratulate the Board,
Management and staff of Standard Chartered
Bank Uganda for pioneering many innovative
digital banking solutions in the financial services
sector in Uganda, especially in the recent past.
Ladies and Gentlemen, Standard Chartered Bank
is the oldest bank in Uganda and its adoption of
digitalization can be traced back to the mid-1990s,
when the bank was the first to introduce
Automated Teller Machines.
The digitalization journey has since seen the roll
out of various technology driven business
solutions, as the Bank pursued its strategic
objectives. If you have been following closely,
Standard Chartered Bank over the past half a
decade or more has been aggressively changing its
business model fundamentally to be 'Digital by
Design'. As I recall, Standard Chartered committed
to invest US$1.5bn in technology globally. It is
therefore not surprising that today we are
convening to witness yet another key milestone in
the Standard Chartered Uganda digitalization
agenda.
The theme today, "Digital transformation in
banking, future trend and how to remain buoyant"
is not only very relevant to the banking sector, but
represents the future of banking and evolution of
business models in this sector. It is cognizant of
the increasing convergence between banking and
technology, and the disruption of existing business
models therein.
But how will the digitalization which is taking
center stage in the banking today, transform
banking tomorrow?
 Banking service delivery is increasingly reliant
on technology. The type and application of
technology determines how Financial
Institutions appropriately respond to consumer
expectations and needs. Technology is also an
essential in the toolkit Supervised Financial
Institutions (SFIs) use to manage the
competitive pressures that are increasingly
defining the banking sector.
By focusing efforts and resources on the
digitization of core business processes, financial
institutions enhance their ability to respond to
the inherent dynamism associated with
technology, and to the competitive pressures
that increasingly manifest in the banking
sector, both today and tomorrow.

The evolution and increasing sophistication of
customer tastes and preferences must be met
by anytime-anywhere functionality. In order to
respond appropriately to these needs, financial
Institutions must design financial service
products and solutions that contain these same
features. Currently, digitalization provides
financial institutions the ability to collect
customer centric information, apply advanced
data analytics thereto, and subsequently design
and make available relevant financial products.
 With the development and roll out of digital
banking solutions like Mobile Banking, Internet
Banking etc., Financial Institutions operate as
virtual agents on behalf of their consumers,
enabling flexibility in the conducting of bank
transactions. And with digitalization, comes
increased speed of transaction processing and
turn-around time.
It is therefore self-evident that new digital banking
innovations will continue to emerge, and gain
prominence in customer service delivery.
I am glad that Standard Chartered Bank has
recognized this trend and has embedded
digitalization in its strategy as reflected by the
continued implementation of innovative banking
solutions.
Indeed, Standard Chartered Bank was awarded
the best "Digital Bank for Africa" by the "Digital
Impact Awards for Africa" in 2017, an attestation
that the bank is determined to offer the best in
class banking solutions through digital platforms.
I wish to reiterate that while innovations such as
the one being launched today accrue benefits to
the Financial Institutions and customers, they also
present associated risks, which if not well
managed have the potential to outweigh the
benefits. It is my prayer, and part of their
prudential obligation, that Supervised Financial
institutions including Standard Chartered Bank
Uganda Ltd, continuously review, enhance and
improve their risk management programs;
especially with respect to the emergent risks
inherent in digital banking business solutions.
Ladies and Gentlemen, I wish to remind you that
the Bank of Uganda through its Monetary Policy
mandate is committed to fostering a stable
macroeconomic environment to enhance the
stability and soundness of Uganda's financial
sector. As was highlighted in the Monetary Policy
Statement for December 2018, the economy is
projected to grow by 6.5% in the Financial Year
2018/2019, an indication of a brighter economic
outlook for business. I therefore urge Standard
Chartered Bank that in the pursuit of your
strategies, keep in mind the opportunities that will
accrue from the promising economic prospects.
The Central Bank as a Regulator, will continue to
enhance its supervisory capacity and abilities in
order to facilitate and maintain financial sector
stability. The Financial Institutions Act 2004
empowers Bank of Uganda to enforce licensing
requirements and good corporate governance
practices, as well as to evaluate the efficacy of
existing risk management frameworks of the
supervised financial institutions. The Bank of
Uganda shall continue to execute this mandate.
As I conclude, I would like once again to
congratulate Standard Chartered Bank on
unveiling this revolutionary digital initiative.
Thank you all for listening to me and wish you a
great evening
Prof. Emmanuel Tumusiime-Mutebile
Governor, Bank of Uganda