The Chief Executive Officer of the Deposit Protection Fund (DPF), Julia Claire Olima Oyet, has warned bank customers against using social media as the first avenue for resolving disputes with financial institutions, saying such actions can inadvertently destabilise the banking sector.
Oyet made the remarks during the Eastern Regional Deposit Protection Fund Inter-University Quiz Competition held at Wash and Wills Hotel in Mbale, an initiative aimed at promoting financial literacy and awareness of deposit insurance among young people.
She noted that while social media has empowered consumers and expanded public discourse, complaints posted online about banks can easily be misinterpreted and trigger unnecessary panic among depositors.
“Banks lend from the deposits they receive. If all depositors, based on a rumour, chose to withdraw their money, would the bank have it?” Oyet asked the audience.
“No,” she responded.
Her warning comes at a time when many customers increasingly turn to social media platforms to air grievances involving delayed transactions, account restrictions, loan disputes, or customer service concerns before exhausting established complaint-resolution channels.
According to Oyet, this trend poses a significant threat to public confidence in the banking system.
Unlike many other businesses, banks depend heavily on trust. Depositors place their money in financial institutions because they believe it is safe and accessible when needed. Once that confidence is undermined, fear can spread rapidly.
A single social media complaint can sometimes be interpreted as evidence that a bank is facing financial difficulties, even when the matter concerns an isolated customer dispute or administrative issue.
Financial experts note that confidence remains one of the banking sector's most important assets. Even a financially sound institution can come under pressure if large numbers of customers attempt to withdraw funds simultaneously.
Oyet urged customers to utilise established regulatory mechanisms when disputes arise.
In Uganda, customers can first seek redress through a financial institution’s internal complaint-handling structures. If the matter remains unresolved, complaints may be escalated to the central bank, which regulates commercial banks and other supervised financial institutions.
According to Oyet, these formal channels allow concerns to be investigated and addressed without unnecessarily alarming the wider public.
Her remarks also highlighted the growing challenge regulators face in the digital era, where information spreads rapidly and public reactions often precede verification of facts.
“A lot of people are looking for content — TikTokers, people on X and other platforms. Please listen to the voice of Bank of Uganda. Listen to the Governor,” she said.
The Deposit Protection Fund serves as a key safeguard for depositors in Uganda. It protects customers' savings in the event that a regulated financial institution closes, with deposits of up to Shs10 million per depositor currently insured.
Oyet said maintaining stability in the financial sector requires not only regulation and deposit insurance but also responsible communication from the public.
She cautioned that in an age where a social media post can reach thousands within minutes, a customer's grievance can quickly evolve into a matter with wider implications for public confidence in the banking system.
Tags: Deposit Protection Fund, Julia Claire Olima Oyet, Bank of Uganda, Banking Sector, Financial Literacy, Mbale, Deposit Insurance, Social Media.
