the field on topics related to the digitalization of banking services, including presentations on how banks can strategically position themselves in rapidly changing financial markets, new paradigms for financial page 6 of 7 inclusion, risk based oversight and regulatory compliance and career development. you will have the benefit of an excellent team of resource persons, most of who are senior officials in the financial services industry in east africa, and who have come here to share their expertise with you. i am confident that the presentations and discussions in this banking school will offer you valuable insights and contribute to the development of your careers. thank you for listening. page 7 of 7

bank of uganda remarks by prof. emmanuel tumusiime - mutebile, governor, bank of uganda 18th east african banking school : the future of banking in a digital and disruptive environment pearl of africa hotel august 6, 2018 mr. anthony mulindwa, chief executive officer of the uganda institute of banking and financial services senior officials from the eac sister institutes of bankers participants from our eac partner states good morning ladies and gentlemen i would like to begin by welcoming you all to the east african banking school and to commend the uganda institute of banking and financial services for hosting the school. the collaboration between the ugandan institute of banking and financial services and its counterparts in kenya and tanzania in organizing this banking school is an excellent example of the practical contribution, which regional cooperation at the institutional level can make to capacity building and professional training in our region. the theme for this year ’ s banking school is : “ the future of banking in a digital and disruptive environment ”. it is a theme, which could not be more pertinent for the banking industry in east africa. page 2 of 7 the adoption of digital technologies is having a profoundly transforming the banking industry. two aspects of this transformation are especially important. first, digital technologies, such as mobile banking and internet banking, have made possible new methods of delivering financial services to customers. this has enabled banks to expand their customer base, in particular by bringing customers into the banking market that had hitherto been excluded from access to banking services, because it was not commercially viable for banks to serve this segment of the potential market. as such, digitalization is making a substantial contribution to enhancing financial inclusion, although its full potential in this regard has yet to be realised. over the last decade kenya has been a global pioneer in the adoption of digital technologies to transform the nature of financial services. initially this transformation was driven by the growth of mobile money, which is primarily a payments service, but it is now evolving into mobile banking with a broader range of financial services. page 3 of 7 secondly, digital technologies have enabled the automation of a wide variety of tasks previously performed by bank staff. it, therefore, offers banks opportunities to reduce their operating costs, mainly through automation of operations. increasingly customers can conduct transactions with their banks around the clock without having to enter a banking hall or interact with any bank staff. the adoption of digital technologies to deliver financial services also creates challenges and risks for commercial banks ; three of which are particularly worthy of