Open banking in Uganda – Open Banking Nigeria

Uganda

Overview

Uganda’s financial sector is regulated by the Bank of Uganda (BoU). The banking sector has been described as generally sound and well capitalized. The BoU has created an enabling environment for financial modernization, rapid technological advancements particularly through its focus on digitization and inclusive finance initiatives. However, open banking initiatives remain unexplored. Current financial innovations focus on expanding mobile money services, a significant contributor to Uganda’s digital economy. There is potential for open banking to complement these services, especially given the growing demand for secure and accessible digital payment systems

Current Status of Open Banking

While open banking frameworks are absent, there is growing recognition of its potential to transform the financial landscape. Fintech innovations and the widespread adoption of mobile money services have already shown how technology can bridge the financial inclusion gap, make banking more accessible and foster a culture of financial literacy among the youth.

For open banking to become a reality in Uganda, the BoU will have to work through the prevalent challenges including inconsistent internet connectivity in rural areas, limiting the reach of digital banking services in those regions, and cybersecurity risks which have risen alongside the growth in digital transactions.

Important links