Uganda Deposit Protection Fund Overview and Initiatives

The Uganda Deposit Protection Fund is a vital institution that safeguards the deposits of Ugandan citizens. It was established by the Uganda Deposit Protection Fund Act 2013.

The Fund's primary objective is to protect depositors in the event of a bank or financial institution failure. This ensures that depositors' funds are safe and secure.

The Uganda Deposit Protection Fund operates under the Uganda Deposit Protection Fund Act 2013, which outlines its powers and functions. The Act provides for the Fund's management, funding, and operations.

The Fund's initiatives are aimed at promoting a stable and secure financial system in Uganda.

The Uganda Deposit Protection Fund has implemented a robust digital solution to streamline its operations. This solution, provided by Mantra Technologies Ltd in Joint Venture with Gradatim, includes hardware, security, and software components.

The hardware component features Dell Servers and Dell Storage, while the security component relies on Fortinet firewalls. The software component, DPPS, is a comprehensive digital solution that addresses all aspects of the Deposit Insurance's functioning.

DPPS boasts distinctive functionalities, including a Single Customer View, Liquidator Self Service, Bank Portal, and Certified Auditor Portal. It also integrates with Mobile Money platforms and commercial banks.

The integrated digital solution has three main components: Operations-Front, Operations-Back, and System Integrations. Here are the key features of each component:

This digital solution has significantly improved the MIS, CRM, and Risk Management for the Deposit Protection Fund of Uganda, enabling better decision-making processes.

The Deposit Protection Fund of Uganda has implemented several key features to improve its operations and decision-making process. One of the notable features is the integrated digital software solution provided by Mantra Technologies Ltd in Joint Venture with Gradatim.

This solution addresses all aspects of the functioning of the Deposit Insurance, including accounting, premium collection, claims settlement, and payment systems. It also has distinctive functionalities such as a Single Customer View, Liquidator Self Service, Bank Portal, and Certified Auditor Portal.

The system consolidates all financial data in one place, significantly improving the Fund's MIS, CRM, and Risk Management. This allows for better decision-making and policy formulation. The DPPS also maintains the life-cycle history of depositor-wise claim and payment history.

The system integrations include integration to Mobile Money platforms and Integration to commercial banks. The solution is provided by Mantra Technologies Ltd in Joint Venture with Gradatim.

Here are the key features of the integrated digital software solution:

The project was initiated due to the lack of a depositor payout and premium management system (DPPS), which is a key component of IT systems in the automation of deposit insurance for customers of deposit-taking institutions licensed by Bank of Uganda.

The absence of such a system necessitated the need to procure, install, test, and commission DPPS to ensure the automation of deposit insurance.

Central Banks worldwide are implementing significant reforms in the deposit insurance system to ensure early access to information about failing institutions and techniques for providing rapid access to funds.

This initiative aimed to provide depositors with quick access to their funds, which is essential for maintaining confidence in the banking system.

Uganda's economy has seen significant growth in recent years, with a GDP growth rate of 6.3% in 2020, according to the World Bank.

The Uganda Deposit Protection Fund has been established to protect depositors in case of bank failures. The fund has a coverage limit of up to Shs 50 million per depositor, per bank.

In 2019, the Uganda Deposit Protection Fund received 31 complaints from depositors, with a total claim value of Shs 2.4 billion.