A memorandum signed by Standard Chartered Bank and Vivo Energy to create additional points of distribution has culminated into a launch of the first digital outlet in Uganda.
The digital outlet, operationalized to avail real time 24 hour cash deposits through a cash deposit machine will also self- service enabled cash withdrawals, funds transfer and bills among others.
Speaking during the launch in Ntinda, the head retail banking, Mr Israel Arinaitwe said they are investing heavily in technology to improve efficiency through simple and standardized solutions to deliver easy and convenient banking.
“With the launch of this digital banking unit, we give our customers yet another great reason to recommend Standard Chartered Bank to their colleagues, friends and family,” he said.
The director supervision Bank of Uganda, Dr Tumubweine Twinemanzi in his key note address lauded the bank saying the outlet is timely with the bank’s digital agenda, however, he asked that the bank takes up risk management systems to curb cyber threats.
“While technology improves operation efficiency and enables you grow your customer base, there are some potential risks, prominent of which are IT derived insecurities and fraud,” he said, “Adding that where IT based networks are the vehicles for delivery of services, the most affected of risk is the consumer.”
Subsequently, he asked the banks to adapt risk management systems in order to manage these risks. These include educating about healthy systems of accessing these banking channels and more importantly, being proactive in keeping consumers aware of the danger regarding confidentiality of their private information.
In response to the cyber threats, Mr Innocent Wemesa, the bank’s manager digital banking said Stanchart has incorporated strong security measures to prevent risks that could arise from using the digital outlet.
He said the bank undergoes internal hacking to illuminate any risks that the system is susceptible to, and eventually closing the gap with firewalls. The digital outlet will use a one-time password at each transaction, privy to only the registered telephone number of the user.