Absa Bank Uganda has brought together financial institutions, regulators, fintech companies and data protection and information security professionals to discuss how the financial sector can strengthen the protection of customer information as digital services become increasingly interconnected.
The engagement, held under the theme “Trust by Design: Embedding Privacy, Consent and Responsible Use of AI across Digital and Open Banking Models,” focused on the need for greater collaboration as customer data moves across banks, technology platforms and other service providers.
Absa Bank Uganda Managing Director David Wandera said data privacy should no longer be treated solely as a technology or compliance issue, given the growing interconnectedness of digital financial services.
“Technology is allowing us to understand our customers better and serve them faster, but every new connection also creates another place where information can move, be accessed or potentially be misused. For those of us leading banks, data privacy is therefore a management issue that affects customers and ultimately impacts trust,” Wandera said.
Uganda’s financial-services sector has undergone significant changes in recent years, with banking applications, mobile money, agent banking, digital lending and partnerships between banks and fintech companies allowing customers to access a wider range of services without visiting traditional bank branches.
While the shift has increased convenience and created opportunities for greater financial inclusion, it has also expanded the number of systems and service providers through which customer information may pass.
Participants at the workshop examined how financial institutions can strengthen accountability across these interconnected services, including the sharing of data to combat fraud and money laundering while safeguarding customer privacy.
The discussions also covered consent management, open banking, embedded finance and privacy risks associated with agency banking.
Absa Group Head of Data Privacy Thav Reddy said the increasing links between banks, fintechs and technology providers make cooperation on data protection increasingly important.
“Across Africa, we are seeing financial services become more digital, more connected and increasingly dependent on partnerships between banks, fintechs and other technology providers. That makes collaboration on data privacy critical because customer information does not necessarily remain within the walls of one institution,” Reddy said.
She said financial institutions should incorporate privacy considerations into the design of digital products and services from the outset, including how information is collected, shared and stored, as well as how customer consent is managed.
The approach, she said, should also extend to emerging technologies such as artificial intelligence.
“If we can get that right, privacy becomes more than a compliance requirement; it becomes part of the foundation that allows digital financial services to grow at scale while maintaining customer trust,” Reddy said.
The workshop also examined the growing use of artificial intelligence in financial services. Banks and other financial institutions are increasingly using AI in areas such as fraud detection, customer service, risk analysis and process automation.
While the technology presents opportunities to improve efficiency and customer experience, participants noted that its growing use also raises questions about governance, accountability and the responsible handling of customer information.
A key focus of the discussions was privacy by design—the principle of considering how customer information will be collected, accessed, used, stored and shared when products, partnerships and technologies are being developed, rather than addressing privacy concerns after implementation.
Uganda’s data-protection framework is also placing greater responsibility on organisations that collect and process personal information, requiring them to strengthen governance, safeguards and controls around the handling of customer data.
Wandera said the opportunities created by new technologies must be matched by efforts to maintain customer confidence.
“Customers may not know which AI model we use or what an API is, but they will know whether they feel safe trusting us with their money and their information. The institutions that will succeed in this next chapter of banking will be those that can embrace everything technology makes possible without losing sight of the people it is meant to serve,” he said.
The workshop highlighted the need for continued cooperation among banks, fintechs, regulators and other stakeholders as Uganda’s financial-services sector adopts new technologies and increasingly interconnected models of delivering services.
