BoU warns banks of risks associated with technology as Finance Trust gets new headquarters

BoU warns banks of risks associated with technology as Finance Trust gets new headquarters

The BoU director for commercial bank supervision Tumubweine Twinemanzi has warned banks to be on look for risks associated with technology.

Tumubweine said “From BoU, our focus on next year or so is going to be largely on risks that come with relying on technology to provide services. We have moved from an era where the biggest threat to a bank would have been robbers walking into the banking hall with a gun to those with fingers and phones,”

He was on Friday speaking during the opening of the new headquarters for Finance Trust Bank at TWED Plaza, Lumumba Avenue in  Nakasero and  but also 38th anniversary celebrations for the bank.

The BoU official hailed the bank for scaling the heights to ranking among the top banks in the country, adding that the future is bright.

“It is a bold move and speaks to where you want to be in the future. The fact that you are making this bold move almost after we have just come out of the period of uncertainty including Covid and its effects is an affirmation of taking the bank’s vision way beyond just the dream but taking your place within the banking sector in Uganda,”Tumubweine said.

The bank’s board chairperson, Dr. Evelyn Kigozi Kahiigi, said they have invested in technological advancements such as alternative banking channels to safeguard the bank and customers from emerging threats.

“We have implemented systems and controls through sound management practices to safeguard against cyber threats. We will continue to strengthen our resilience in relation to combating cyber threats,” Dr. Kigozi said.

The Finance Trust Managing Director, Annet Nakawunde described the move to new headquarters as being strategic in their move reposition the bank for its next phase of growth.

“The decision to relocate our head offices is  right because what use to be microfinance customers have since grown to be corporates and they now deserve the service of being corporates,” Nakawunde said.

She added that the previous location in Katwe  had  now become  inaccessible for the regulator, customers, and bank shareholders.

The Finance Trust Managing Director noted that the move symbolizes the bank’s determination to continuously improve its offering to the customers by ensuring that its products and services are accessible in a convenient environment.

According to the bank’s board chairperson, Dr. Evelyn Kigozi Kahiigi, they have introduced a number of  banking channels to enhance products and service delivery  to customers as well as

“Whereas we have made tremendous strides in governance, we have deliberately put in place resources to ensure that the environment is preserved as we carry on our business transactions and support the emerging social issues. We shall go a long way in ensuring sustainability, reducing the cost of funding, and creating an environment conducive to further business progression and sustainability.”

Founded in 1984 as Uganda Women’s Finance Trust Limited, the bank’s objective was to provide financial services to low income people in Uganda, especially women.

Subsequently, the institution rebranded to Uganda Finance Trust Limited, a tier three financial institution recognized as a microfinance deposit-taking institution under the supervision of the Bank of Uganda.

In 2013, BoU granted the bank a full commercial banking license and then rebranded to Finance Trust Bank (FTB).

Finance Trust currently has 35 branches serving 500,000 customers countrywide but also serving 29000 borrowers with their core client being in the lower pyramid of the economic strata and inclined to serving women who are emerging rural entrepreneurs and enterprising urbanites as individuals or saving groups.

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