The Governor Bank of Uganda, Emmanuel Tumusiime Mutebile has said banks need to lower their operational costs if they are to increase lending and growth.
Speaking during an Annual Bankers Conference at Serena Hotel in Kampala on Wednesday 19 July 2017, Mutebile noted that due to high lending rates as a result of high operating costs banks have failed to strengthen their lending capacities.
Mutebile also said banks ought to adopt innovative technologies such as use of IT to deliver banking services, adoption of mobile and online banking together with smart ATMS, which will help reduce operational costs.
Speaking on the same conference, Professor Njunguna Ndung’u, the former Governor of the Central Bank of Kenya urged commercial banks to forge a way of reducing costs. This he said can be done through financial inclusion by going digital.
Njunguna added that financial inclusion actually helps in reducing poverty by encouraging saving among the population.
He however warned that use of ICT would greatly affect the employment sector, as many staff will be replaced by technology.