Session 5: Accelerating The Financial Payment System Through Innovation

This session was moderated by Mr. Mulenga Chanda from Bank of China and a panel consisting of Gilbert Lungu, the Country Manager at Cellulant; Mr. Leonard Mwanza the President of the Bankers Association of Zambia (BAZ) and Mr. Christopher Nanchengwa from ZECHL.

KEYNOTE “When we get to a point where someone selling oranges cannot accept cash but e-wallet or mobile money, then we will be able to appreciate the benefits of both banks and Fintechs”. The Zambia National Financial Service is a huge platform that connects all financial players in Zambia, monitors and certifies them to ensure financial transaction security. As we have previously embraced online payments, the country has to work together, coordinate, and develop effective payment platforms. Banks have improved their service delivery, and cybercrime is being dealt with zeal by more trained personnel in technological systems. There is a need to increase internet connectivity in rural regions while continuing to use USSD for banking transactions.

Mr. Leonard Mwanza revealed how there have been discussions surrounding the fear regarding who is taking the lead in the banking systems over the years. He elaborated the country needed to be looking at how to work together, the need to collaborate and promote efficient payment platforms, and highlighted that the country has also accepted online payments. He further amplified the next steps in going digital, which included having more sensitization and distribution especially in the rural areas. He said, “When we get to a point where someone selling oranges cannot accept cash but e-wallet or mobile money, then we will be able to appreciate the benefits of both banks and Fintechs”. In response to questions that ensued, he gave an example of how banks had improved over the years especially with the cheque maturing process and how it would take 7 days to mature but not anymore. He also highlighted how the introduction of controlling both the client and the bank helps to monitor all transactions either through SMS or email notifications. Previously this kind of convenience was not available for the client. The other convenient service that the banks have introduced is making payment after working hours possible. Responding to issues with cybercrime he said that we have about 40% skilled staff in cyber security. We need to raise the skill levels. The technology systems are available but the skilled staff are few.

Mr. Gilbert Lungu said that going digital was a very interesting digital journey. He mentioned that, in Zambia, it started with mobile money services which facilitated payments and the innovations have grown as a result of the demand from people wanting more services.

Mr. Christopher Nanchengwa said that the Zambia National Financial Service is a big platform that links all financial players within Zambia. “With regard to digital growth, back then cheque had a hectic process to be cleared but we launched a service that enables end-users to process cheque faster,” he said. He explained that in the year 2019, they launched a service that stopped transactions using VISA swiping machines from supermarkets and other shops to be approved from outside Zambia. So now, all VISA transactions are approved within Zambia. They also launched mobile money like MTN, Airtel, and Kazang which are connected at the NFS. He added that one thing important to them was security of these transactions and to achieve this, they ensure that before the implementation, the financial players get certified by NFS. In response to questions on where we are in rural areas, Mr. Nanchengwa said that It is a bit challenging to digitalize the rural areas, but at least now USSD is being used because it does not require internet as long as one has phone, they are able to make the transactions.