Digitial Transformation Project
Primary Target Groups: All
Tools of impact: Technical Assistance
Achievements: Increased engagement with innovators, organisational readiness and adoption of Regulatory Sandboxes.
The Financial Technology Service Providers Association of Uganda (FITSPA) – FSDU led and supported the formation of Uganda’s Fintech industry association. The Fintech industry prior to the formation of an association was highly fragmented. With no clear regulatory environment and a lack of clarity on the types of financial products and services that FinTechs engaged in within Uganda, regulators, banks and mobile network operators struggled to meaningfully engage with the industry and a few early market entrants disproportionately dominated the scene. FSDU’s efforts to establish an industry association led to the following successes: a) It legitimised an emerging industry. While early members were largely payment solutions providers, this institution has grown to over 80 members that provide a wide range of services; b) It gave the industry bargaining power against Uganda’s oligopolistic mobile industry; c) Regulatory engagement was more coordinated and unified; d) It helped build awareness on what the Fintech industry in Uganda is, the legal challenges, investment and growth challenges and how other actors could crowd-in and support the growth of this industry.
In a demonstration of the growing influence and credibility of the association, FITSPA was invited by the Committee on Finance, Planning & Economic Development to discuss the national payments systems bill (2019).