The association [FITSPA] emerged as a runner-up in the Leadership in Regulatory and Policy Impact Award category. Notably, there are six other categories; Excellence in Fintech and Startup Support Award, Excellence in Capacity Building and Talent Development Award, Innovation in Industry Reports and Knowledge Sharing Award, Best Initiative for Consumer Protection and Growth Award, Outstanding Event of the Year Award, and Outstanding DFA of the Year Award.

The awards honor and celebrate excellence and amplify the influence and reach of DFAs. The awards underscore the vital role DFAs play in building the ecosystem, demonstrating their enormous value and capacity to influence.

FITSPA Uganda has been a key advocate for the inclusion of the fintech ecosystem in regulatory and policy frameworks established by key regulatory bodies. Through its persistent efforts, the association has ensured that fintech players across the country have a voice in shaping policies that directly impact innovation, growth, and consumer protection within the sector. By actively engaging with regulators, FITSPA has contributed to the creation of a more enabling environment that balances innovation with regulatory oversight, fostering the growth of a thriving and inclusive fintech ecosystem.

Uganda’s fintech sector has witnessed remarkable growth, thanks in large part to the pivotal role played by the association (FITSPA). As a champion of innovation and inclusivity, FITSPA has spearheaded several initiatives to shape a conducive regulatory and policy environment. By bridging the gap between regulators and fintech innovators, FITSPA has positioned Uganda as a trailblazer in creating a forward-thinking ecosystem that supports sustainable growth in the digital finance landscape.

One of FITSPA’s key achievements is its advocacy for the licensing of digital lenders through the Uganda Microfinance Regulatory Authority. This milestone ensures that digital lenders operate within a regulated framework and fosters trust and accountability within the sector. Additionally, FITSPA’s support in developing Tier 4 Digital Lending Guidelines demonstrates its commitment to creating an inclusive and responsible digital lending ecosystem. By helping regulators understand digitization and data-sharing, FITSPA is paving the way for robust financial practices that benefit consumers and businesses.

FITSPA’s influence extends beyond digital lending to the broader fintech landscape. Its collaboration with the Financial Intelligence Authority to establish a risk assessment framework for virtual assets has strengthened the sector’s alignment with global compliance standards. Furthermore, FITSPA has been instrumental in guiding fintech companies through the complex process of obtaining licenses from the Central Bank of Uganda, ensuring seamless navigation of regulatory requirements. These efforts collectively highlight FITSPA’s unwavering dedication to fostering a resilient, innovative, and globally competitive fintech sector in Uganda.

See also: Dr. Twinemanzi: The future of fintech in Uganda and the broader digital economy relies heavily on collaboration

The DFA Awards spotlights the transformational initiatives and leadership of DFAs and their role in shaping the future of the global fintech landscape. From capacity building and startup support to regulatory advocacy and consumer protection, DFAs are at the forefront of creating sustainable impact and advancing finance inclusion. Their work empowers professionals, strengthens ecosystems, and propels the industry toward responsible and inclusive growth.

As national leaders, DFAs offer unparalleled access to extensive networks and informed industry insights. They advocate for enabling regulatory environments, cultivate strategic partnerships, provide technical assistance, establish standards for market conduct and practice, and enhance capacity within the profession. These efforts are pivotal in fostering collaboration, driving fintech innovation and growth, and enhancing ecosystem resilience.

The post AllianceDFA Honors FITSPA Uganda at the DFA Awards for Advancing Digital Finance and Fintech Innovation appeared first on PC Tech Magazine.

In one of the panel discussions, an interesting topic, “Pathways to Funding for Fintechs” was discussed. During the session two seasoned founders; William Luyinda; CEO of Ezy Agric and Eng. Chrispius Oyancha; CEO of ClinciPesa, and Brenda Amony; Portfolio Relationship Manager, Deal Flow Facility at FSD Uganda, gave insights on the art of fundraising.

Securing funding for a startup is one of the most critical steps for a startup to succeed. However, raising funding is very challenging.

“Securing financing is a critical step in scaling a startup. However, determining the right type of capital for your startup can be challenging,” says Eng. Chrispius Oyancha; CEO of ClinciPesa.

The key to securing funding is to strategize properly on revenue sources to pursue, understand the unique challenges and risks of the fintech industry, and ensure compliance from the outset. Suppose founders have the right preparation and a solid pitch. In that case, they can attract investors who not only provide capital but also understand the industry and can help push your startup forward.

Firstly, it’s better to understand the unique landscape of fintech funding. Unlike other industries, fintech startups are in a highly regulated space. Fintech startups rely on a maze of financial regulations and compliance standards —this will influence how investors regard them.

Luyinda and Oyancha shared insights into the type of capital, understanding the role of fundraising, picking the right investors, persistence & resilience in fundraising, etc., that founders should consider when seeking funding.

Selecting the right capital for your startup

When selecting capital for your startup, it’s important to understand its cost and how it will affect your business in the long run. “All forms of capital have pros and cons so don’t rush. Take time to understand what comes with what and evaluate which one to go with based on your objectives,” said Oyancha. He warned founders to be cautious of the terms set by investors, as desperate founders may find themselves tied down by unfavorable conditions.

Founders can select between equity investment, debt capital, sweat equity, grants, etc., to fund their startups. Oyancha says equity may dilute ownership but can provide the necessary growth capital, whereas debt retains ownership but requires steady cash flows. “Debit is a cheaper and more affordable source of capital for startups in fintech or technology compared to equity,” he said. “In the early stages, grants may be the best option.”

Adding to Oyancha’s remarks, Luyinda said when it comes to raising equity, it is important to think about the long-term effects on ownership. “If a founder raises USD$500,000 (approx. UGX1.8 billion) in exchange for 10% equity, they must consider how this dilution will impact their stake in the company as they grow,” he said.

Luyinda also pointed out that while grants may seem like an easy and “free” form of capital, they come with their challenges. He cautioned that grant funding, while helpful, often requires a long time to mature and may not always align with a company’s focus. Especially in challenging ecosystems like Uganda, where access to capital is limited, founders are often tempted to chase after any available grant, even if it doesn’t fit their core strategy. He said the key is to ensure that the grant aligns with the business’s long-term vision —calling on founders to resist the temptation to pursue every available funding opportunity and instead focus on those that align directly with their goals.

Understanding your role in fundraising

Fundraising is a complex process. “No matter how much support founders receive from transaction advisors or other experts, they must remain at the center of the process,” said Luyinda. He noted that founders must understand how to structure funding and how different funding sources such as debt, equity, grants, etc., impact the business. For instance, understanding cash flow and how debt in different currencies will affect the bottom line is essential for making informed financial decisions.

Picking the right investor

A common mistake many founders make is partnering with investors who do not align with their business model or industry. “It is crucial to seek investors who have experience in your sector,” says Luyinda. An investor unfamiliar with e-commerce will likely fail to grasp important metrics such as customer acquisition cost, retention rates, or lifetime value (LTV). These metrics are essential in evaluating the potential of an e-commerce business. Without this understanding, the investor may undervalue the startup or make unreasonable demands that do not reflect the business’s true worth.

“Choosing the wrong investor can lead to misaligned expectations. A founder must strive to find someone who can recognize the value in their business and negotiate a fair middle ground,” says William Luyinda; CEO of Ezy Agric.

One powerful takeaway from the conversation was the importance of persistence in fundraising. In most cases, the majority of investors founders pitch to will say no, however, Luyinda and Oyancha noted that eventually —they will find an investor who shares the founder’s vision. “From the majority, founders only need one “yes” to move forward,” said Luyinda. “Once that connection is established, the rest of the process becomes much smoother.”

Oyancha also noted that persistence is key —as the process of closing the deal is usually lengthy and can span years. “You need patience, as closing a deal can take years —over three plus years,” Oyancha noted.

Board structure

Another key discussion revolved around the composition of the board. Equity investors often demand to be on the company’s board. Luyinda and Oyancha share a hard-earned lesson: “Not every investor is equipped to serve on a board.” They said many investors may have advanced degrees or business credentials, but they might lack the practical experience to build the startup from the ground up. This lack of understanding can create friction.

To avoid these challenges, they said ensuring that at least one board member has real entrepreneurial experience is vital. “Having a former founder or experienced business leader on the board can help bridge the gap between the entrepreneur’s vision and the investor’s expectations,” Luyinda explained. “This individual can empathize with the challenges of scaling a business, hiring a team, and implementing complex processes, all while providing valuable insights that align with the founder and investor perspectives.”

Fundraising is an art that requires strategy, patience, and an intimate understanding of both the business and the investor landscape. Founders must take the time to ensure they are speaking to the right investors, structuring deals that make sense for their long-term vision, and building a board that can provide both guidance and empathy. By focusing on these key areas, they can navigate the fundraising journey more effectively and position their businesses for long-term success.

The post The Art of Fundraising: Insights From Seasoned Founders appeared first on PC Tech Magazine.

The conference gathered industry leaders, innovators, and professionals eager to understand the evolving digital landscape and harness its potential for their organizations. Among the industry leaders was Dr. Twinemanzi Tumubweine, the Executive Director of National Payments at the Bank of Uganda, who in a dynamic session titled “Unpacking the Power of Collaboration to Deliver a Robust Digital Economy,” shared key thoughts on regulation, artificial intelligence (AI), cybersecurity, and the importance of collaboration within the fintech ecosystem.

Dr. Twinemanzi stressed that regulators must strike a delicate balance to promote innovation without stifling growth. Speaking about the future of AI in fintech, he urged regulators to prioritize risk management over strict laws. “AI that drives progress should be created in ways that reduce risk and allow fintech to thrive in an environment that promotes technological advancement,” explained Dr. Twinemanzi. He believes fintech and other digital financial services can scale without unnecessary barriers. This fosters a regulatory environment that promotes growth and innovation. This will help propel Uganda’s digital economy to new heights.

Meanwhile, a key theme in the conversation was the issue of cybersecurity, an area where the government and fintech companies have a role to play. Dr. Twinemanzi argued that a collective effort to tackle cyber threats is critical and that individuals must play their part too, by protecting their data and devices. “The first line of defense against cyber threats and fraud lies with the individual,” he said, noting that people often overlook basic security measures. He said that most people don’t even read the terms of use for new devices, underscoring the need for a more vigilant and proactive approach to personal cybersecurity.

He emphasized the need for smarter and more proactive personal cyber security. Although government regulations and industry standards can provide a framework for strong cybersecurity, he said “responsibility is shared” —and only collective consciousness and action can achieve a secure digital economy.

See also: OP-ED: Building a robust cybersecurity readiness for Africa’s digital future

There was also a light consensus in the discussion on the fintech ecosystem, especially how the embrace of collaboration rather than competition is important. Dr. Twinemanzi advocated for partnerships in the fintech sector, especially through collaborative platforms like FITSPA. He motivated the stakeholders in the fintech industry to regard themselves not as rivals but rather as allies to achieve specific objectives.

“Fintechs have an ample market, which can only be exploited satisfactorily if they change their focus beyond their current income streams,” he stated. In his opinion, if fintech companies partner and move away from siloed perspectives, they will all play a part in fostering a better and more inclusive financial ecosystem.

He highlighted how collaboration works in unlocking the growth potential that is wanted: individual firms and the sector as a whole. In his words, it is collaboration that will provide the answer to how innovations are created and how a digital economic environment that will be positively impacted by regulators, fintechs, and consumers is created.

Dr. Twinemanzi’s insights offered a compelling reminder that the future of fintech and the broader digital economy relies heavily on collaboration. By working together—across industries, between government bodies and the private sector, and with a shared commitment to innovation and security—the dream of a thriving digital economy can become a reality.

As Uganda’s fintech landscape continues to evolve, the emphasis on collaboration will play an integral role in ensuring that growth is sustainable, inclusive, and secure. Dr. Twinemanzi called for collaboration over competition, balanced regulation, and shared responsibility in cybersecurity providing a roadmap for building a robust digital future.

See also: OP-ED: Architecting cybersecurity for Uganda’s fintech sector

The post Dr. Twinemanzi: The Future of Fintech and the Broader Digital Economy Relies Heavily Collaboration appeared first on PC Tech Magazine.

The conference has gathered industry leaders, innovators, and professionals eager to understand the evolving digital landscape and harness its potential for their organizations. The keynote speaker, Mr. Dave Birch, a commentator on digital financial services, shared his vast knowledge and insights in the fintech sector —among the things he shared was AI in the financial sector, the future of banking run by robots, digital trust, and quantum computing, among other things. Here’s our takeaways from his keynote;

AI replacing humans in key decision-making roles

Artificial intelligence (AI) is the most professional in many specialized areas and could be released only in few years from now. In the health department, AI is installed for medical use and is even more effective than health experts in the visual scan portion. While now practiced to validate medical availabilities, the speed with which AI is progressing suggests that such backup of human intervention is less and less certain. However, the real dislocation occurs in the wave of AI that comes later: digital agency.

The artificial intelligence market has already shifted its direction as today’s hot topic is the development of “people agents”—autonomous bots that are capable of performing human tasks. These types of bots will not only assist but also do away the need for human input in cases of analysis and probability-based decision-making. It won’t be long before companies need active inputs from humans as sources of decision making even those who are in top management.

AI in financial services: revolutionizing compliance

Machine learning and AI have focused their efforts on influencing the compliance aspect of the financial services industry. Compliance is essentially a given in the case of financial institutions for they are always guided by legislation, however for a business such as anti-money laundering and know-your-customer compliance it is an expensive and lengthy task. By and large, 50% to 70% would be spent by fintech companies on compliance activities—not on the provision of services or products in the industry.

There are significant cost advantages in the compliance management systems including external outsourcing of these activities. Processes, which include filling AML forms and KYC checks against customers, can be performed by bots, thus saving the time of human personnel who can concentrate on economic activities that create more value. However, well crafted, systems like ChatGPT do not yet have the proficiency to conduct those functions autonomously due to the shortcomings including hallucinations- distortion in which pictures predicted by AI bear no truth. Such hallucinations in the financial services sector, where facts matter a great deal, may lead to huge fines upon some convincing regulations.

The true disruption: AI for consumers, not just banks

Many financial institutions see AI as a cost-cutting and efficiency-improvement tool for their existing business models. Nevertheless, such a view lacks depth. Its core disruptive quality is not on improving managers’ decision-making, but on changing the way customers make financial decisions. With the blooming of technology companies such as Google, Apple, and Facebook that are making AI more widely accessible, it will also have a radical effect on how mass market consumers manage their money.

For example, many people do not achieve optimal or maximum returns on their savings accounts because they do not have time or knowledge or too much administrative work needs to be done to earn the best interest. These days, most consumers have been rendered passive by the force of inertia when it comes to making financial decisions and instead tend to park large amounts of money in interest-bearing accounts that do not yield very much. On the other hand, there are no limitations to AI. For example, one consumer’s personal AI could always check checking accounts while sitting in the office, and if any of them earns more interest than the other, the funds in the performing account will be moved around to maximize the profit.

This type of AI-assisted financial management changes everything in the banking industry. For example, these bots will determine everything right down to which credit card to pay making use of the maximum rewards and minimum fees including card rank and simply optimizing interest on account for the bots making use of excessive payoff of interest rate cards.

The age of robot-to-robot transactions

As financial markets open up to artificial intelligence, we cannot rule out the possibility of robot-to-robot transactions taking place. Just in the future, all banks will more likely stop advertising their services and products to people as they will be targeting the bots managing their clients’ finances instead. The use of labels or any form of persuasive selling would be a thing of the past. The data was the central focus of the Bots, the amount of fees, and the expected output were the only determinants. Therefore the products being developed will be targeted towards these measures.

The first problem would be how to distinguish if a given transaction has been initiated by a human or a robotic market participant. For these and other reasons, it will be hard to tell the measure as these machines grow in strength. New solutions would be required on the side of banks for example to prove why certain activities that they perform are genuine in the way that they do not allow the bots operating inside banks to assist fraudsters and other people to con banks.

In summary, the realm of artificial intelligence in the financial services of the future is not one of the distant castles in the air, but clusters of clouds whose outlines clearly can be seen. From ensuring bookkeeping to customer service assistance, AI is about to change the dynamics of the industry. Banks who apply AI technology in only ways of cutting down costs and achieving minor modifications of existing services are simply ignoring the reality.

The post AI is Unpredictable and the Destruction is Going to be Big in Fintech — Dave Birch appeared first on PC Tech Magazine.

This competition aligns with FITSPA’s goal of fostering a community of empowered women pursuing career and personal growth in technology and digital financial services​.

Following a series of presentations, Wena Hardware emerged winner, closely followed by MpaMpe in the first runner-up place, and Recycle Pay as the second runner-up.

Celebrating Success: Congratulations to the winners of the Women in FinTech Competition at #FinTechConf23

1st Place: Wena
2nd Place: MpaMpe
3rd Place: RecyclePay

Let’s continue to support and celebrate the achievements of #WomenInTech pic.twitter.com/PI3xS3wQQI

— Fitspa Uganda (@FitspaUG) October 13, 2023

Wena Hardware emerged victorious with its innovative construction app, an end-to-end digital solution for the construction industry.

The app’s features like a secure “Save to Build” wallet, a retail and wholesale e-commerce platform, a hub for professionals, a materials calculator for precise Bill of Quantities (BOQs) generation, and a vibrant community of peers and experts, are designed to digitize all activities across the construction chain. 

Valoah Amumpaire, the founder and CEO of Wena, emphasized the win as a significant milestone that underscores the platform’s commitment to revolutionizing construction practices through cutting-edge technology.

“As Wena, we aim to ease the construction journey, and bridging the construction financing gap is one we deem core,” Amumpaire told PC Tech Magazine. “As winners of the FITSPA women in tech 2023, this win validates our solution,” says added.

The other winners

MpaMpe, the first runner-up, is a web-based platform that seeks to help charities, individuals, and organizations digitally fundraise to stay up to date with the spending habits of their audience as well as provide transparency during the collection.

RecyclePay on the other hand, who emerged as the second runner-up, is a digital environmental platform that allows community members to collect plastics and earn points on it, which are redeemable for school fees or health care credits.

On Tuesday this week, the three innovations received their cash prize from FITSPA handed to them by FITSPA Women Chairperson, Ms. Doreen Lukandwa

Today wena hardware and MpaMpe received their cash prize from FITSPA Uganda having emerged as winners of this year’s FITSPA Womens Pitch Competition.

Wena (right) emerged as overall winners while MpaMpe (left) were 1st runners-up. pic.twitter.com/07MWQackQH

— PC Tech Magazine (@pctechmagazine) October 31, 2023

A growing, innovative FinTech space in Uganda

The Women FITSPA Pitch Competition is a commendable initiative that not only fosters innovation but also champions gender inclusivity within the fintech domain. This event undoubtedly contributes to pushing the boundaries of what’s achievable in the fintech sector, particularly for women-led startups.

The impact of such pitch competitions on startups, especially women-led ones, cannot be understated. They provide an avenue for showcasing innovative solutions, networking with industry stakeholders, and securing funding which is vital for scaling operations.

The success stories from these competitions are a testament to the growing fintech scene in Uganda and the pivotal role of women in steering this growth.

The post Wena Hardware Wins FITSPA Women’s Pitch Competition appeared first on PC Tech Magazine.