Kampala. Bank of Uganda (BoU) has challenged the financial services sector to adopt a shared technology service delivery model as a way of cutting the cost of doing business.
Speaking during an executive discussion for business and ICT leaders Dr Tumubweine Twinemanzi, the BoU executive director supervision, said the financial services sector must leverage on the current technology to cut costs as well as improving efficiency.
“[Shared services) is something we have been trying to do in the financial services sector,” he said, urging financial institutions to engage experts, especially in the ICT sector, as they focus on their core business of mobilising deposits and extending credit.
The event, which was organised by Raxio Data Centre and Oracle in Kampala, sought to establish ways through which financial institutions can make use of the rapid growth in the ICT sector to build efficient and relevant products.
Raxio, which is developing a data centre in Namanve, Mukono District, seeks to among, others create a safe and cheap channel through which companies can back-up their data.
The financial services industry in Uganda has over the last 10 years seen average cost to income ratio rise to 74.6 per cent compared to 66.7 per cent in the 10 years to 2008. Mr Joachim Steuerwald, the Oracle Cloud Platform sales director, said with increased reliability on digital mobile solutions, it was critical for service providers to invest significantly in reliable systems.
“We are increasingly becoming a digital economy. Customers can’t tolerate our digital services being down for an hour. This requires the right ICT to run businesses 24/7,” he said, adding that whereas cloud computing, one of the safest models of safeguarding data offsite, has been around for some time but adoption in East Africa, just like in many other African countries, has been slow.
Dr Twinemanzi also noted that the Central Bank had initiated discussions that will seek to introduce a regulatory framework, which will guide adoption and use of cloud services.
A 2017/18 survey conducted by National Information Technology Authority, found that whereas majority of government ministries, departments and agencies agreed that cloud services had significant benefits such as reduction in ICT related costs (86.4 per cent), simplicity of deployment (77.3 per cent), increased productivity and flexibility in up-or down-scaling, only 28.6 per cent of such agencies reported using cloud computing services.