Absa Bank Uganda has brought together key players in the financial sector to discuss ways of strengthening collaboration in protecting customer data as digital financial services continue to expand.The engagement brought together representatives from financial institutions, regulators, fintech companies, data protection organisations and information-security professionals.The workshop was held under the theme, “Trust by Design: Embedding Privacy, Consent and Responsible Use of AI across Digital and Open Banking Models.”The discussions focused on the growing importance of protecting customer information as data increasingly moves between banks, fintech companies, technology providers and other financial service platforms.Speaking during the workshop, Absa Bank Uganda Managing Director David Wandera said data privacy should no longer be treated only as a technology or compliance matter.Wandera said the growing use of digital platforms has made financial services more interconnected, creating both opportunities and new responsibilities for institutions handling customer information.He noted that technology allows financial institutions to understand customers better and provide services more quickly, but every new connection also creates additional points where information can be accessed, transferred or potentially misused.Uganda’s financial-services sector has undergone significant digital transformation, with banking applications, mobile money, agent banking, digital lending and partnerships between banks and fintech companies expanding access to financial services.These developments have increased convenience for customers and created new opportunities for financial inclusion, but they have also increased the number of systems and service providers through which customer information may pass.Participants at the workshop discussed ways of strengthening accountability across interconnected financial services, including responsible data sharing between institutions to help combat fraud and money laundering while protecting 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 stronger collaboration among financial institutions, fintechs and technology providers is increasingly important as the sector becomes more digital and interconnected.Reddy said customer information does not always remain within one institution, making it necessary for different players in the financial ecosystem to work together to strengthen privacy protections.She also emphasised the importance of building privacy into financial products and services from the beginning, including how information is collected, shared and stored and how customer consent is obtained.The workshop further examined the growing use of artificial intelligence in financial services, where the technology is being applied in areas such as fraud detection, customer service, risk assessment and process automation.Participants noted that while AI presents opportunities to improve financial services, its growing use also raises questions about data governance, accountability and the responsible handling of customer information.A key issue discussed was privacy by design, which involves considering how customer information will be collected, accessed, used, stored and shared during the development of products, partnerships and technologies.Uganda’s data-protection framework is also placing greater responsibility on organisations that collect and process personal information to establish appropriate safeguards, governance systems and controls.Wandera said the opportunities created by emerging technologies must go hand in hand with efforts to maintain customer confidence in financial institutions.He said customers may not understand the technical details behind AI systems or application programming interfaces, but they ultimately care about whether they feel safe trusting financial institutions with their money and personal information.The workshop highlighted the need for continued cooperation among financial institutions, regulators, fintechs and technology providers as Uganda’s financial sector adopts new technologies and increasingly connected ways of delivering services.The engagement also underscored the importance of making data privacy and responsible technology use part of the foundation of digital financial services rather than treating them as issues to be addressed after new products and systems have been introduced.
