Financial Technology (FinTechs) stakeholders have said that collaborative regulation has helped to enhance the role of the new business models in the financial service industry.
Speaking during the Africa Fintech Festival on Wednesday in Kampala, Juliet Tumuzoire, Head of Financial Services at Financial Sector Deepening Uganda (FSDU) said the collaborative regulation has helped to unlock the full potential of digital technologies.
“Collaborative regulation brings together all stakeholders to come up with the best guidelines that could enable them offer efficient services to their customers. Therefore with this kind of tool, we look at the client’s side and service provider’s side to ensure effectiveness,” said Ms Tumuzoire.
“As FSDU, we work with regulators, not only do we discuss new development but we also discuss issues of how best FinTechs could be regulated.”
Augustine Ssekyondwa, an official at the National Information Technology Authority Uganda (NITA-U) said the role of regulators has evolved over time with an emergency of FinTechs.
He said they have changed from setting rules to setting principles.
“Regulators now set principles so that the FinTechs find ways of working within them,” said Mr Ssekyondwa.
“And instead of regulating the institution, regulators should start regulating the products. It is important that regulation rotates around a FinTech. This would help to quickly do away with substandard products.”
Eng Godfrey Mutabazi, the Executive Director, Uganda Communications Commission (UCC) said called upon government to embrace new technology if Uganda is to develop like countries in the western world.
“We must embrace new technology. That is the difference between developing and developed countries. Here when we fear something we dismiss it, which is not right. New technology is God’s creation,” said Eng Mutabazi.
At the same event, FSDU Executive Director Rashmi Pillai said, “Our primary role is to address constraints to accessing financial services and facilitate the financial the financial market system to function more effectively and inclusively. Because of the agility of FinTechs, they play an increasing important role in ensuring relevant financial services reach marginalized groups, build their resilience and secure their wellbeing.”
The two-day event that ended on Wednesday attracted over 250 delegates from across Africa including FinTechs, regulators, policy makers, investors, financial service providers and development partners.
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