The Bank of Uganda has issued a directive for enhanced regulatory protections as financial institutions integrate artificial intelligence and Open Banking frameworks. Deputy Governor Prof. Augustus Nuwagaba delivered these remarks on Thursday at the Annual Financial Inclusion and Financial Literacy Forum 2026 in Kampala. According to the Nile Post, the central bank emphasized that technological advancements must be balanced with robust consumer protection measures to prevent privacy breaches and financial instability. Nuwagaba stated that privacy, security, fairness, and accountability must be integrated into financial systems from their inception.
While acknowledging that digital tools can lower service costs and extend access to underserved populations, the Deputy Governor highlighted the risks associated with data usage. He noted that customers require clear understanding of how their financial information is collected and utilized. Furthermore, he insisted that individuals must have accessible avenues to challenge automated decisions that impact their financial standing. The Bank of Uganda also called for a careful examination of virtual assets, stablecoins, and tokenisation, warning that these innovations could affect financial integrity and stability if left unregulated.
Nuwagaba challenged financial institutions, fintech companies, telecommunications operators, and regulators to collaborate on making emerging products affordable and trustworthy. He stressed that innovation must not exclude those lacking smartphones, reliable internet connectivity, digital skills, or acceptable identification documents. To address this, he argued that financial literacy programs must evolve to help consumers navigate complex digital services and protect themselves against fraud. Service providers were urged to explain charges and contractual terms clearly while establishing accessible mechanisms for handling customer complaints.
Beyond immediate technological safeguards, the Deputy Governor outlined the broader economic role of a resilient financial system. He stated that Uganda requires a framework capable of supporting productive sectors such as agriculture, manufacturing, tourism, and mineral development. Inclusive financing, he explained, can mobilize savings, reduce transaction costs, and enable businesses to invest and create employment, thereby supporting the government’s Ten-Fold Growth Strategy. The Bank of Uganda is also strengthening its regional influence, having been elected Vice-Chair of the African Financial Inclusion Policy Initiative for a two-year term starting in July 2026. The central bank will host the initiative’s conference in Uganda in 2029 and is scheduled to host the East African Community Monetary Affairs Committee meeting on financial inclusion and consumer protection.