Business 19 June 2026 Nile Post
Deposit Protection Fund Warns Against Social Media Bank Disputes
The Deposit Protection Fund (DPF) is urging bank customers to avoid using social media as their primary channel for resolving disputes with financial institutions. The DPF warns that unverified complaints can lead to panic and destabilize the banking sector. Source: https://nilepost.co.ug/news/349781/bank-customers-warned-against-turning-disputes-into-social-media-campaigns
Julia Claire Olima Oyet, CEO of the Deposit Protection Fund (DPF), has advised bank customers against immediately resorting to social media when facing issues with their financial institutions. She highlighted that such premature online campaigns can inadvertently threaten the stability of Uganda’s banking sector.
Oyet made these remarks at an inter-university quiz competition in Mbale, an event designed to boost financial literacy among youth. She acknowledged the power of social media in public discourse but stressed that online complaints about banks can be easily misinterpreted, potentially triggering widespread 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 questioned, emphasizing the fragile nature of bank liquidity that relies on public trust. This warning comes as more customers are turning to platforms like X and TikTok to voice grievances before utilizing official complaint channels.
Oyet explained that trust is paramount in banking. A single negative social media post, even for a minor issue, can erode public confidence and lead to unnecessary fear. Financial experts agree that confidence is a critical asset for the banking sector; even healthy institutions can face pressure from a sudden rush of withdrawals.
The DPF CEO strongly encouraged customers to follow established procedures for dispute resolution. In Uganda, this means first engaging the bank’s internal complaint mechanisms. If unresolved, complaints can then be escalated to the Bank of Uganda, the central bank and regulator.
These formal channels allow for thorough investigation and resolution without causing alarm among the general public. Oyet stressed the importance of responsible communication in the digital age, where information spreads rapidly. The DPF itself insures deposits up to Shs10 million per depositor in case a financial institution fails.
Ultimately, maintaining financial sector stability requires not only robust regulation and deposit insurance but also responsible public engagement, especially concerning sensitive financial matters.