The biggest threat facing traditional banks today may not be rival financial institutions, but the growing presence of fintechs, telecoms and digital platforms that now sit between customers and their financial needs, according to Robinah Siima, Chief Financial Officer of FINCA Uganda.
In a recent reflection on the evolving financial landscape, Siima noted that the lines of competition that once defined the industry have largely disappeared. Customers no longer need to visit a bank branch to save, borrow, pay or transfer money. Instead, they increasingly turn to digital platforms that offer speed, convenience and accessibility.
“This isn’t just about technology,” Siima observed. “It’s about who owns the customer relationship, who owns the data, who understands the customer better — and ultimately, who creates the value.”
For finance leaders, she argued, the conversation must move beyond simply tracking how much is spent on digital transformation. CFOs must now ask harder questions: Which digital products and partnerships are truly profitable? Do institutions fully understand the economics of every digital transaction? Are internal systems, reporting frameworks and controls keeping pace with new business models?
Siima also highlighted the broader ecosystem challenge, noting that regulators, auditors and assurance partners must evolve just as quickly as the banks and fintechs themselves if they are to effectively oversee and support these new ways of delivering financial services.
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While digital finance presents a powerful opportunity to reduce costs and reach customers that traditional banking channels could not economically serve, Siima cautioned that opportunity without readiness can quickly turn into disruption.
Looking ahead, she suggested that the future of the industry may not lie in a contest between banks and fintechs or telecoms. Instead, sustainable success will belong to those who learn how to collaborate effectively while still creating lasting value for customers and shareholders.
