UNLOCKING
IN PARTNERSHIP WITH
MASTERCARD
DIGITAL TRANSFORMATION
TO POWER INCLUSIVE FINANCIAL SERVICES IN NIGERIA
THE ORDINANCE OF A
DIGITAL AFRICA
INTRODUCING AUSTIN’S FIVE FORCES MODEL FOR ANALYSING SUSTAINABLE DEVELOPMENT
DIGITAL TRANSFORMATION IN FINANCIAL SERVICES IN ZIMBABWE, ARE WE THERE YET?
THE NEED FOR
A DeFi ECOSYSTEM IN AFRICA
DIGITAL BANKER AFRICA I CONTENTS
CONTENTS FINANCIAL REGULATION
10
Introducing Austin’s Five Forces Model for Analysing Sustainable Development
DIGITAL BANKING
18
The Ordinance of a Digital Africa
COVER STORY
28
The Need For A DeFi Ecosystem In Africa
DIGITAL BANKER AFRICA I CONTENTS
DIGITAL TRANSFORMATION
30
Unlocking digital transformation to power inclusive financial services in Nigeria
32
Digital Transformation in Financial Services in Zimbabwe, are we there yet?
API BANKING
44
How is API Driven Innovation Improving the Banking Experience?
FINANCIAL SERVICES
48
Financial Services for Gig Workers
LEADERSHIP
60
How important is the role of a Leader in Today’s World?
AUTOMATION
62
IT Automation & Leadership
DIGITAL BANKER AFRICA I FOREWORD
Welcome to the Summer edition of
DBA 2021! Welcome to the latest edition of Digital Banker
Along with Abigail Komu who discusses financial
Africa, where we bring you the latest news in
services and how it works for those in the gig
Africa’s digital journey. As lockdowns start to
economy.
become more relaxed and the focus switches to vaccines, one thing is for sure, banking will never
Turn to page 30 to find an in-depth piece from Dayo
be the same again and the steps taken by the
Ademola CEO of Branch International discussing
banking community during the pandemic are
how digital finance could be the key to unlocking
here to stay.
financial inclusion in Nigeria.
In this edition we shine a light on decentralized
We enjoy bringing the latest activity from within
Finance and take a look at exactly what this new
the African Digital Banking community to our
buzz phrase brings to the world of digital finance.
offline and online readership. We strive to capture the breaking news about Africa’s digital economy,
As always, this edition is packed with insightful
digital finance events and digital banking game
opinion pieces from those within the field of
changers from prominent leaders in the industry
digital finance. Gerald Munyaradzi Nyakwawa,
and public viewpoints with an intention to serve a
Chief Association Executive of the Digital Finance
holistic outlook.
Practitioners Association of Zimbabwe asks “Are we there yet?” when discussing the digital
Send us your thoughts on how we can continue to
transformation in financial services in Zimbabwe.
improve and what you’d like to see in the future.
CONTRIBUTORS LIST I DIGITAL BANKER AFRICA
THANK YOU TO OUR CONTRIBUTING WRITERS IN DBA SUMMER 21 AUSTIN OKERE
Founder, CWG Plc and Entrepreneur in Residence, Ausso Leadership Academy
OLUSEGUN FELIX ESAN
Head, Agency Banking Business, Growth & Operations Management Cititrust Financial Services Plc. Nigeria
DAYO ADEMOLA
Managing Director Branch International
GERALD MUNYARADZI NYAKWAWA Chief Association Executive Digital Finance Practitioners Association of Zimbabwe
UZO ONUMONU
Digital Transformation Executive
ABIGAIL KOMU
Digital and Financial Inclusion Consultant
HELGA SALVATERRA PERES
MSc Finance & Banking | Civil Servant | Brand Founder & Creative Manager | Global and Strategic Thinker
HENRY AKINTOYE
Lead, Application development Nigeria Inter-Bank Settlement Systems PLC
Editor: Anthony Bempong Executive Editor: Noel Morrison Deputy Editor: Henry Scott Art Director: Pritesh Patel Layout Designer Abdhesh Kumar Jha Chief Sub: Kwabena Mensah Bonsu Head of Online Development: Lee-Anne Doughlin Online Development: Gerald Hutchfull, Paulette Davidson Subscription Manager: Stephen Rock Marketing Manager: Siobhan Copland Marketing Assistant Jason Hall Circulation manager: Nathan Asare Head of Sales: Michael Scott Production Editor: Rebecca Mcglynn Business Development: James Walters, Lloyd Quansah, Paul Da Associate Producer: Dean Kirby Head of Accounts: Wayne Sykes Publisher: Percival Marshall ISSN 2752-4485 www.digitalbankerafrica.com Images by www.istock.com All information contained in this publication has been obtained from sources the proprietors believe to be correct, however no legal liability can be accepted for any errors. No part of this publication can be reproduced without prior consent from the publisher.
FINANCIAL REGULATION
INTRODUCING
AUSTIN’S FIVE FORCES
MODEL FOR ANALYSING
SUSTAINABLE DEVELOPMENT T
he sustainability challenge is becoming clearer. Being a Consultant at the
Sustainable Development Goals, Africa Centre (SDGCA) in Rwanda and on the Global Agenda Council of the World Economic Forum (WEF) has exposed me to the global framework for economic growth that protects the fundamental pillars of humanity and the planet. The SDGs are about People, Planet, Prosperity and Peace – and about driving development in an inclusive way that leaves no one behind. These tenets were further reinforced through my interview with Professor Paul Romer, Nobel Laureate, and former Chief Economist at the World Bank.
Austins interview with Professor Paul Romer, Nobel Laureate, and former Chief Economist at the World Bank
I see Five Forces driving
Below are the Five Forces and how
opportunities in the society.
they impact sustainability:
They may include regulation,
Organisations - providing jobs
sustainable growth as
for the population for shared
follows – Organisations,
prosperity
Population, Enablers, Infrastructure, and
Population – a large social
the Socio-Political
group subject to the same
Environment. I have
political authority and dominant
codified below, the
cultural expectations. This is the
relation between these
source of skilled labour to the
forces in the in a model
organisation and who in turn
which I call the Austin’s
contribute to the welfare
Five Forces Model for
of society
analysing Sustainable Development.
Enablers – institutions and mechanisms necessary for supporting efficient and equitable pursuance of
Austin Okere Founder Organisation: CWG Plc and Ausso Leadership Academy
education, healthcare, and technology among others Infrastructure – the basic physical and organizational structures and facilities needed for the operation of a society or enterprise. They include housing, ports, roads, power, and communication Social-Pollical Environment - the central values of society, politics, culture and public opinion, as well as the assurance of security and the adherence to rule of law that governs the society
These forces and their interplay are represented in the schematic below:
Austin’s Five Forces model for analysing sustainable development 11
FINANCIAL REGULATION
ORGANISATIONS At the heart of providing jobs is the
accounts for 72 percent of GDP
are a key indicator of the overall
organisation, public, private, start-
with monetary flows from labour
performance of an economy.
ups and non-governmental.
income, capital income, taxes,
A commonly held truism is that government alone cannot provide all jobs and is not big enough to shoulder the entire economy.
investment in capital assets, and payments to suppliers. It is this crucial force that needs to be enabled to unleash economic
In Nigeria, while there are only about 161 companies listed on the Stock Exchange, the total number of MSMEs as of 2019 stood at 41.5m
growth.
according to the National Bureau
terms, government spending
In many economies, 80% of the
of jobs that will be created if each
at 5.7% of GDP (2019) means
jobs are provided by entrepreneurs.
of these businesses is empowered
non-government economic
They are responsible for most of
to employ just only one additional
activity accounts for almost all of
the advances in new products and
person.
GDP (about 95%). Among OECD
processes, provide most of the
economies, business activity
employment opportunities and
Take Nigeria for example, in real
of statistics. Just imagine the scale
At the 2014 WEF annual meeting of the new champions in Tianjin, China- (L-R) N Chandrasekaran, CEO Tata Consulting Services, Austin Okere, Founder CWG Plc, Rich Lesser, CEO Boston Consulting Services 12
FINANCIAL REGULATION
ENABLERS Enablers are institutions and mechanisms which remove economic blockages and open economic arteries. Anything that enhances economic activity to a community will culminate in an economic driver for the society. Regulators are one of the most critical enablers of a society. Regulators, however, tend to be either a source of support or a headwind against progress. The regulator should not constrict the pursuit of opportunity nor act in a manner to entrench protectionism. While Nigeria has become one of the world’s fastest-growing technology markets, attracting investments of over $216m in the
POPULATION A developing society is based on the ideal by which equality of opportunity is available to any member, allowing the highest aspirations and goals to be achieved. While society in the past was split between the haves and have nots, society today is split more into those who are included and those left behind. This inequality is more significant in emerging markets, where 80% of the world reside. According to the National Bureau of Statistics, the unemployment rate in Nigeria is 32.6%, while the youth unemployment rate (15-24 years) in 2020 was 58.3%. Young people who cannot find jobs still need to eat. With few
first quarter of 2021 alone, there is a palpable apprehension among technology start-ups, after a series of regulatory headwinds from different government bodies. These include the Central bank of Nigeria’s ban on cryptocurrency trading and the Security and Exchanges Commission’s clampdown on technology platforms for purchasing shares in foreign companies outside the Commission’s regulatory purview
legitimate options, illegal means become attractive.
and registration.
Research has shown that youth unemployment increases all sorts of
Until more people think they
crime. It is estimated that by 2050, Africa’s population will double, reaching 2.5b people – just about the current combined population of India and China. Without a credible plan towards sustainable
can successfully start businesses and prosper, we will not have enough jobs in the economy. Other
employment, this could be a ticking bomb.
significant enablers are health
What is more worrisome is that while the population grew at a rate of
for jobs, the education system
2.6%, the GDP growth rate was lower at 2.2% in 2019 according to the
needs to be set up so that people
and education. On the supply side
World Bank. 13
FINANCIAL REGULATION
leaving, either at the secondary or university level have employable skills. The most significant enabler in modern times is the Technology Platform. These Platforms provide a means of significantly extending services at low-cost efficiencies, and as a result draw many people into the consumption pool, while also creating many jobs along the value chain which would otherwise simply not exist. Technology Platforms have heralded an era of unprecedented inclusiveness. Nigerian legislators are considering a social media bill to regulate internet conversations...
Austins interview with Professor Paul Romer, Nobel Laureate, and former Chief Economist at the World Bank in Washington DC. 14
FINANCIAL REGULATION
For instance, MPESA the popular payment system had more than 60% of Kenya’s 33 million mobile users and in 2015 transacted $28m on her platform. Similar applications have metamorphosed across Africa, and Mobile Money services are today generating 6.7% of Africa’s GDP. Platforms have made it possible to reach far more than our traditional schools can cater to, by leveraging Massive Open Online Courses (MOOCs). Research and Markets forecast that e-learning will grow to $325 Billion by 2025 from $107b in 2015. The Covid-19 pandemic has severely tested many sovereign health systems, and many have been found significantly wanting. without a significant network of
INFRASTRUCTURE Infrastructure speaks to facilities needed for the operation of a society, and includes power, ports, transportation, communication, housing, and not least, broadband to homes and offices. This has now become imperative due to the increase in digital transformation,
rail or a functional underground transport system in 2050?
SOCIO-POLITICAL ENVIRONMENT Nothing impacts sustainable
The UK’s Underground Tube
growth as much as a stable socio-
system moves 1.35b people
political environment. it enables
annually and has been operating for
the attraction of capital for rapid
about 150 years. African Countries
economic development. The rule of
such as Ethiopia and Kenya are
law is paramount for a stable polity.
making strident advances in rail
Any society that does not abide
transportation.
by some code of conduct whether in public or private matters tends
largely driven by the Covid-19
The biggest infrastructure
pandemic. A lack of these will
drawback, however, has been
severely constrict the smooth
electricity. Almost half of the
production and delivery of goods
people living in Sub-Saharan
Produced, or built, capital is what
and services.
Africa do not have access to
many of us think of when we think
electricity. The attendant impact
of capital: the sum of machinery,
on entrepreneurship can only be
equipment, and structures
imagined. If Africa were able to
(including infrastructure) and
achieve in power what she has
urban land. If one simply adds up
achieved in telecoms the impact on
the current value of a country’s
sustainable development would be
natural resources and produced,
immense.
or built, capital, there’s no way
By 2050, the infrastructure needed for the 2.5b Africans will be unprecedented in the history of humankind; 700m housing units, 300k schools, and 100k health centres. Can you imagine Africa
to become chaotic, and virtually ungovernable.
15
FINANCIAL REGULATION
that can account for that country’s level of income. The rest is the result of “intangible” factors such as the trust among people in a society, an efficient judicial system, clear property rights and effective government. All these intangible capital also boosts the productivity of labour and results in higher total wealth. In fact, the World Bank finds,
and punctual. In poorer countries,
sustainable development the world
“Human capital and the value of
a small minority follow these basic
over. It has a disproportionate,
institutions (as measured by rule of
principles in their daily lives.
destructive impact on the poor and
law) constitute the largest share of wealth in virtually all countries.” According to the World Bank’s
A society is not poor because they lack natural resources or because
most vulnerable, but it is also quite simply bad for business.”
nature is cruel to them, but rather
The sustainable development of
because they lack the right attitude.
any society depends on where they
Conscience is usually thrown out,
lie on the spectrum of these critical
accounts for 36%.
and justice is on sale to the highest
five forces.
The blind application of the law
market society.
regression analyses, the rule of law explains 57% of countries’ intangible capital while education
without regard to status, tribe or creed is what enshrines deterrence. It is the pursuit of deterrence that drives developed countries from sparing any high-ranking members of the society who fall foul of the law, not least their leaders, who are held to a higher account. Through rampant corruption and failing school systems, many lowincome countries are destroying their intangible capital and ensuring that their people will be
bidder; this is what is known as a
Russian American writer and philosopher, Ayn Rand succinctly
Austin Okere is the Founder of
sums it up as follows:
CWG Plc and the Ausso Leadership
“When you see that in order to produce, you need to obtain permission from men who produce nothing - When you see that money is flowing to those who deal, not in goods, but in favours - When you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but
poorer in the future.
protect them against you - When you
When we analyse the conduct of
honesty becoming a self-sacrifice -
the people from rich and developed
You may know that your society is
countries, we observed that a
doomed.”
majority abide by the following principles of life: ethics, integrity, responsibility, the respect of most citizens for the rule of law, pride in their work, the effort to save and invest, and the will to be productive 16
Where does your society lie?
see corruption being rewarded and
According to Yury Fedotov, Executive Director, United Nations Office on Drugs and Crime,“Corruption represents a major threat to the rule of law and
Academy. He has an MBA from IESE Business School, and over 25 years entrepreneurial experience. Currently an Entrepreneur-in-Residence at Columbia Business School, New York, he has also been appointed to the Board of Trustees of the Global Business Practices Council of the AACSB, and the Advisory Board of the Global Business School Network in Washington in recognition of his contribution to the development of business education and knowledge transfer in Africa. Austin is on the World Economic Forum’s Global Agenda Council and has served as a Consultant to the Sustainable Development Goals, African Center (SDGAC) in Rwanda.
Are you a financial services leader creating value in the economy, society, and environment? Are you an exceptional professional driving unparalleled performance and building sustainable institutions? Are you an innovator shaping the financial system?
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DIGITAL BANKING
THE ORDINANCE OF
A DIGITAL AFRICA
18
DIGITAL BANKING
P
rior to the mechanics of the digital system in Africa, we experienced an
analog mode of operation in the banking system where we could only run transactions inside the
Olusegun Felix Esan Head, Agency Banking Business, Growth & Operations Management Cititrust Financial Services Plc. Nigeria. ofelix@cititrust.ng +2348035210500
banking hall where our accounts domiciled and this took a lot of
Now, think about the import of this in Africa that is predicted to have over one million devices in a few years; this simply means that there will always
and creativity. Many years, you
be a vulnerable device
hours out of our daily lives. Cash
were likely to get a job and become
available to be attacked. I believe
posting to other countries takes
financially independent within
this has also helped us ramp up
longer days to mature. The trade
a few years after graduation.
software development such as
system also experiences an ugly
This isn’t the case for young
machine learning and artificial
trend where the marketers have to
Africans right now – a group
intelligence in dealing with the
travel with cash from one town to
that constitutes about 58 percent
shameful problem of corruption
another and thereby attract robbers
of the population in Africa. The
and introduction of e-voting in
who rob them of their cash and
population of Africa has grown
election processes and other vices.
valuables. But now, bank accounts
exponentially and with it has come
are agnostic of locations where they
increased competition for jobs.
were opened.
To make up for this, more young
The past two decades, which was the gradual invention of digital banking operations such as the supply and installation of Automated Teller Machines to their respective banks and the configuration of ATM cards which bring seamless transactions and relief to all in Africa. A decade ago, was the incorporation of a cashless policy society with POS flag off, Agency Banking, USSD (Unstructured Supplementary Service Data), Internet Banking, Mobile Money Operation and Web Pay Services. These domains substantially reduced the banking stress and increased transactions operation across Africa. These digital products and services have increasingly boasted the economy from 14% to 78%, reducing crime rate, fraud and money laundering. More innovation forces and reativity have led to more growth and opportunities,which in turn open the door to more innovations
people are starting businesses and embracing creative career choices fueled by the rapid penetration of the Internet and digital technology. These two factors have introduced new dimensions to how we do business and make money. Today, we have smartphones that can allow us to speak with our friends in myriad ways, including over social media, instant messaging apps, email, audio and video calls. All these new developments have impacted how we relate as humans, they have also influenced banking and of course redesign the windows of job opportunity in Africa.
The impact of Artificial Intelligence continues to be felt across ndustries substantially in marketing and sales, logistics as well as supply chain management and manufacturing. AI has the potential to create trillions of dollars of value across the economy if business leaders in Africa work to understand what it can and cannot do. However, a number of studies have argued that AI and robotics will take over 50 percent of human jobs in the next 30 years, but will expose human to more newly creative mechanizes works to do in either agriculture, crafting and artisans’ jobs which would also attract AI and thereby create more technology advanced
So, now we have a generation
jobs opportunities. The research
of entrepreneurial and creative
sensitivity is due to the exponential
Africans, a generation accustomed
advancements in robotics, quantum
to living through mobile, software
computing and AI. Restrictions
and digital technology which in
on movement and reduction in
turn have revolutionizes every
the handling of physical cash
industry known to man. Now
because of Covid-19 pandemic
Cybersecurity – Cyber threats
caused mobile money transaction
are real. A securitymagazine.com
volumes in sub-Saharan Africa
report states that a cyberattack
to reach $490bn in 2020 – Visa
occurs every 36 seconds.
report. Digital innovation and 19
DIGITAL BANKING
technological advances are
access to funds, no access to bricks
monthly, quarterly or annually.
bringing exciting opportunities
and mortar banks, no access to
Upon subscription, they are
for financial inclusion to the
loans and benefits. Agency banking
channeled to the Clinics and
fore. Technology is now a tool
is all about financial inclusiveness
Health Centers closest to them
to leapfrog over old processes,
under an enabling environment
for medical checkup, test, drugs
systems and protocols for the
and thereby contributing to the
administered and treatment.
benefit of everyday consumers.
economic growth of the nation.
Digital marketing has greatly
Moreover, before the advent or
Agency Banking is an innovative
advanced the emancipation of the
insurgence of Covid–19 pandemics,
solution borne out of digital
Entrepreneurs and startups on a
which vehemently awakes all of us
proportion for customers and other
daily basis. Entrepreneurship is
and teaches to the conclusion that
stakeholders including SMEs. It is
inherently risky such that business
we must all go digital across board,
to bridge the financial inclusion gap
owners must possess the ability
forces us to shift our behaviors
by empowering the underserved
to mitigate company specific risks
and adopt more technology to
individuals and businesses in
while simultaneously bringing a
assist our day-to-day lives in
emerging and frontier markets with
product or service to market at a
all aspects, Africans believe and
a range of financial services such as
price point that meets consumer
practice the linear chain of home
but not limited to – cash transfer,
demand levels. Digital marketing
to office as employees carry out
cash deposit, cash withdrawal, bill
has therefore leveraged a window
their job roles on daily basis in
payment, airtime vending, data
to showcase these products to
the office. Now, digitalisation
subscription, satellite subscription.
prospect markets. Digital and
has broadened our knowledge
It exposes SMEs to various finance
technology have drastically
such that 72% of the corporate
opportunities that they could access
increased job / wealth creation
world work from home with an
and utilize to foster the continued
in every sector of profession.
inestimable height of productivity,
growth of their businesses, while
We can shop online with easy
virtual meetings can be held with
optimising the sustenance of their
payment mode, we can apply for
different online platforms. Post
business operations in contributing
admission online, we can study
covid has given birth to more
to national development. The
online and acquire certification,
digital products and offerings
product acts as the financial
we can do interviews online, we
such as card less transactions,
access lifeline for individuals and
can pay our bills online and so on.
thumbprint transactions, eye lens
communities in otherwise hard
Conclusively, is the introduction
contact transactions alongside QR
to reach towns and villages, the
of digital currency which will
scan transactions mechanism, all
unbanked or underbanked areas,
deepen financial inclusion in Africa.
these as a result of the advanced
to enable them access and manage
Most central banks had indicated
tech system and innovation.
their money more efficiently and
keen interests in developing their
Talking more on POS / Agency
productively. This also serves
digital currencies in response
Banking System – this has become
as means of showcasing other
to the threats and limitations
a much bee in the air with a lot
deliverables a particular company
of cryptocurrency including
of tech giants in operation. If
has within her subsidiaries for
poor regulation, price volatility
you understand the market, the
the agents and their customers
and facilitating illicit financial
MSMEs, empowerment via loans
to patronise. Agency Banking
transactions. Virtual currencies
to fund business and the startups,
enhances the capacity building
would henceforth enhance smooth
the growth execution, the value
pillar of its value propositions
financial transactions, eliminate
creation and the Return on
to SMEs. Aside banking services,
bottlenecks associated with the use
Investment are awesome. Across
Micro Health Insurance is another
of cash (mutilated notes, forgery,
enabling service offered to these
cash handling charges, shortages)
agents via POS usage, such that
and increase the velocity of
their health security is covered
circulation.
Africa we have a large percentage of people living below the average of 69% total population, who have no 20
NEWS FROM WEST AFRICA
NIGERIA TO PILOT CENTRAL BANK DIGITAL CURRENCY IN OCTOBER On Oct. 1, CBN will reportedly launch a pilot scheme for
view, ranging from higher efficiency for payments and
“GIANT,” a CBDC project in development since 2017
remittances, better monetary policy transmission,
that runs on the open-source blockchain Hyperledger
improved tax revenue collection, and the facilitation of
Fabric.
targeted social policies.
Rakiya Mohammed, CBN’s information technology
Alongside CBN, the Bank of Ghana has this summer
director, said the bank might conduct a proof-of-
been moving rapidly toward the pilot stage for its
concept before the end of 2021. In a webinar this week
own central bank digital currency. The country has
with stakeholders, CBN representatives reportedly
positioned itself as a pioneer in CBDC development
emphasised that the institution could not afford
on the continent and considers central bank-issued
to be left behind while the vast majority of central
digital currencies to be superior to and less risky than
banks worldwide make headway with their own CBDC
decentralized cryptocurrencies.
research and development.
However, Ghana’s wariness of crypto is overshadowed
Among the motivations cited for the project, CBN has
by Nigeria’s more aggressive measures, which include
noted that a CBDC would be beneficial for macro and
a ban on commercial banks and other financial
growth management, cross-border trade support and
institutions from servicing crypto exchanges. Despite
financial inclusion.
this, Bitcoin (BTC) adoption and peer-to-peer trades
Potential benefits could still extend further, in CBN’s
have remained high in the country.
CELLULANT ROLLS OUT DIGITAL PAYMENTS SOLUTION IN GHANA Pan African payments company
PSP License allows Cellulant to
Ghana is fast becoming a hub for
Cellulant has acquired PSP License
aggregate merchant services,
fintech in Africa. Being licensed
in Ghana as it rolls out a digital
process financial services, acquire
by the Bank of Ghana means a lot
payments solution for businesses
merchants; deploy POS systems,
to the growth of our industry and
and aggregate payments for banks,
opens doors to increased security
institutions, and the general public.
and confidence in digital payments
The license is a requirement under
systems. Cellulant’s digital
the Payment Services Act 2019
payments platform is allowing
which mandates that all Financial
every Ghanaian to pay for their
Technology or digital payments
goods and services through any
companies be licensed by the Bank
payment channel of their choice.”
Cellulant is also launching Tingg in Ghana to provide the best customer experience for all persons and businesses looking to digitise their payments, collect, and disburse to customers today. This announcement came after the Central Bank of Ghana issued Cellulant a payment services provider (PSP) License. The 22
of Ghana before they can operate in the country.
Hundreds of businesses have
Cellulant Ghana country manager,
to collect digitally from their
Eric Kortey, said, “We believe that
customers across Ghana.
already begun using Tingg
NEWS FROM WEST AFRICA
PAN-AFRICAN FINTECH PLATFORM APPZONE SECURES $10M SERIES A FUNDING Appzone, the Pan-African fintech software provider building proprietary solutions for the continent’s banking and payments industries, has announced the close of its $10mn Series A round. Led by CardinalStone Capital Advisers with participation from V8 Capital, Lateral Investment Partners, Constant Capital, and Itanna Capital Ventures, the new round will bolster investment in Appzone’s core technologies and kickoff a wave of new country expansions in a drive to build out a financial operating system intended to completely digitise and automate the delivery of financial services on the continent. Launched in 2008, AppZone delivers best-in-class products for
have served 18 commercial banks
limited to using foreign technology
digital core banking and interbank
and over 450 microfinance banks,
solutions tailored for Western
transaction processing with clients
amassing a yearly transaction value
markets – many of which are
across seven African countries
and yearly loan disbursement of
plagued with the huge stumbling
including high-profile names
$2bn and $300mn respectively.
blocks of prohibitive pricing,
like Access Bank, GT Bank and Zenith Bank. Since its inception, the company, also an alumnus of the Google launchpad accelerator, has led Africa’s fintech sector through radical innovation that resulted in a number of global firsts from the continent, including the world’s first decentralized payment processing network , the first core banking and omni-channel software on the cloud and the first multi-bank direct debit service based on single global mandates. To date, the company’s platforms
As Africa’s traditional banks and fintech startups grapple with
insufficient flexibility to innovate and a lack of local tech support.
the increasing threat from telco
Speaking on the fundraise,
companies and big tech players,
Appzone’s Co-Founder and CEO
AppZone’s products effectively
Obi Emetarom says: “We’re
and affordably equip them to deal
excited not only to be securing a
with the sector’s most pressing
significant capital raise, but also
challenges including legacy cost
welcoming on board some strategic
structures and a major lack of
investors whose support will be
operational efficiency. Currently,
key to our growth journey. Today’s
due to a severe dearth of high-
news allows us to scale Appzone’s
quality localised solutions that
products and services rapidly. For
address these problems, traditional
the last 12 years, we’ve worked in
and challenger banks in Africa are
stealth mode, building the really 23
NEWS FROM WEST AFRICA complex infrastructure to power
Association of Microfinance Banks)
the continent’s growing digital
and CeBIH (Committee of eBusiness
financial services space and forging
Industry Heads) awards.
partnerships with the continent’s biggest financial institutions. In terms of next steps, we are now looking to hire from Africa’s top 1% to grow our team of elite talent who have proven themselves to be true African builders; the brightest senior software engineers and domain experts, doing the incredibly hard work of building the backbone and next generation infrastructure for digital financial services at a level beyond worldclass. We are seeking out gifted and audacious engineering and entrepreneurial minds, hungry to accelerate economic prosperity and tackle challenging technology with us. We are not just trying to bring African fintech on-par with the rest of the world – we exist to make our financial sector the most innovative and technologically advanced on the globe through solutions built for Africa by Africans.” Currently, Appzone’s clients spread across Nigeria, Ghana, Gambia, DRC (Democratic Republic of Congo), Tanzania, Senegal and Guinea and to-date, the company has raised $15m in equity funding with previous investors including Lateral Capital, GreenHouse Capital, Timon Capital and Itanna. In 2018, the company obtained an officially approval from the Central Bank of Nigeria to operate as a Payment Solution Service Provider (PSSP) and has been the recipient of a number of industry awards including the Frost & Sullivan Award, NAMB (National 24
Yomi Jemibewon, Co-Founder and Managing Director of Cardinal Stone Capital Advisers said: “Our investment in Appzone is further proof of Africa’s potential as the future hub of world class technology. Appzone is building a disruptive FinTech ecosystem that will be the backbone of Africa’s finance industry with products across payments, infrastructure and Software as a Service. The impact of Appzone’s work is multifold – the company’s products deepen financial inclusion across the continent whilst providing best-fit and low cost solutions to financial institutions. Its emphasis on premium talent also helps stem brain drain, rewarding Africa’s best brains with best in class employment opportunities.” Despite its challenges, Africa’s banking sector is projected to reach a total market valuation of $129bn by 2022 according to McKinsey & Co. As the industry struggles to serve Africa’s huge unbanked population, there has been a growing influx of fintech platforms filling the gap. In recent years, these startups have attracted major interest from investors across the globe and in 2020, the sector accounted for over a third of the total $1.3bn in funding secured by African tech startups.
VISTA BANK GROUP, SELECTS PAYTECH PROVIDER RADAR PAYMENTS BY BPC TO DRIVE ITS DIGITAL PAYMENT STRATEGY BPC have announced that the Vista Bank Group (Vista) has selected its paytech provider Radar Payments to drive its global payment processing activities. Vista is a Pan-African financial services company, which aims to contribute to economic growth and financial inclusion across Africa. It has an ambitious agenda to challenge the status quo and deliver a superior experience to retail customers, large enterprises and MSMEs across West Africa. The group is expanding rapidly through a series of successive strategic acquisitions that include First International Bank (FIB) Group in Gambia, followed by BNP Paribas’ Subsidiaries, La Banque Internationale pour le Commerce et l’Industrie de la Guinée (BICIGUI) in Guinea and La Banque Internationale pour le Commerce l’Industrie et l’Agriculture du Burkina (BICIAB) in Burkina Faso. Vista Bank is now the top bank in Guinea by assets and network coverage.
NEWS FROM WEST AFRICA In response to its digital-first
acquisition in ATM, Point-of-Sales,
Vista Bank is taking bold decisions
strategy, Vista has selected Radar
Contactless, QR payment, and
when it comes to its technology
Payments by BPC as its preferred
E-Commerce.
stack, forming alliances with the
partner to drive digital payment adoption in the region. Radar Payments will centralise payment operations at Vista’s tech hub located in Senegal, supervising Vista Bank’s activities in Guinea, Gambia, Burkina Faso and Sierra
This announcement comes at a time where AfCFTA, the panAfrican free trade agreement has become a reality. Since 1st January 2021, AfCFTA has set new business standards for 41
best partners in their own fields. By selecting Radar Payments, the paytech by BPC, we have chosen a leader with a solid reputation in delivering superior global payments processing.”
countries and 1.2 billion people to
Evgenia Loginova, CEO of Radar
help accelerate economic growth
Payments, commented: “We are
across the continent. The free trade
proud to join Vista Bank on their
programme promises a change in
journey to transform the way
trading rules, with reduced import
people bank, pay and get paid,
export taxes making commerce
while making financial services
The agreement will see Vista
more affordable for players in
more accessible to them. This
Bank running on BPC’s flagship
Africa. It also means that the
partnership was born from our
payment suite, SmartVista
volume of transactions will sharply
shared vision to successfully
to manage card issuance and
increase and banks in the continent
solve real life payment problems
lifecycle management, payment
will have to gear up for a pan-
with a high-end, globally proven
switching, ATM and Point-Of-Sales
African service.
digital solution that focuses on end
Leone while leaving room for further banks to join its network. It is part of the bank’s growth agenda to expand to Burkina-Faso, Togo, Cote d’Ivoire, Senegal and Mali.
management as well as providing digital channels such as mobile banking and e-wallet; personalised to both retail and corporate clients. The bank is planning to accelerate the issuance of UnionPay International (UPI) branded cards including prepaid, debit, and premium cards, in addition to the
Simon Tiemtore, Group Chairman at Vista Bank, said: “With AfCFTA, banks have to think pan-Africa first, and realise that we need to step up the game in terms of ease of payment, a critical component to every banking and business
customers. Together, with the help of cutting-edge digital payment solutions, we will provide easy, instant and secure movement of money, thereby transforming Vista Bank into a trailblazing player within the continent. “
experience. As a challenger bank,
TEAMAPT WILL USE ITS NEW FUNDING ROUND TO PROVIDE DIGITAL BANK SERVICES FOR THE UNBANKED Nigerian Fintech startup, TeamApt, has successfully
solutions, and running Payments Infrastructure by
raised an undisclosed amount in its Series B funding
rethinking the needs of consumers, businesses, and
round.
the financial industry. Beginning operations in 2015,
The funding round was led by Novastar Ventures with participation from FMO, Global Ventures, CDC, Oui Capital, Kepple Africa Ventures, Soma Capital, and a
TeamApt was born from a desire to create financial happiness, building solutions and tools for businesses and individuals to happily manage money.
syndicate of local angel investors including Gbenga
This new influx of funds will be used to extend its
Oyebode.
offerings directly to customers and micro-SMEs by
TeamApt is a financial technology company focused on, developing Digital Banking, Digital Business
giving them access to the financial access lifelines they need to succeed. The company also plans to expand their solutions beyond Nigeria. 25
NEWS FROM WEST AFRICA ACCESS BANK LAUNCHES ACCESSX TO ENHANCE SELF-SERVICE BANKING In a bid to provide top-notch
“The traditional branches do have
channels, we are able to them
digital service to its customers
their place; they have something to
satisfied. This also gives opportunities
and demonstrate the best of
support with but AccessX centre is 100
for the customers to have full digital
innovative solutions through self-
per cent digital support.”
experience in channels we are all
service banking, Access Bank Plc has launched AccessX that it has termed an experience centre.
Providing details on other digital services that customers can benefit from the AccesX centre, Daniel
aware of and also it helps us get feedback to improve our channels and see the way the customers interact with our channels.”
The bank explained that the
Akumabor, the Chief Technology
experience centre is a one-
Officer – Channels, said: “There are
And when asked about how accessible
stop technology hub where its
a lot of concepts and services we can
it is for customers anywhere,
customers are taken on a digital
afford customers and that does not
Akumabor said: “Customers from any
tour spanning from Artificial
mean that this is an exclusive place
part of the world can reach excellent
intelligence to Robotics, and Smart
where we do all that.
centres and get things resolved for
data.
“Customers coming in here can do
them.
The financial institution said the
a lot of things. They can resolve
“Here is the difference, we know
centre is related to digital channels
challenges, complaints, enquiries or
that our customers like to do things
and a place to demonstrate the best
requests across our digital channels.
digitally and if they go to any of our
of its innovative solutions through self-service banking.
“When they say digital channels, that stands for when there is a card,
The bank’s Executive Director,
USSD, internet banking, mobile app is
Retail Banking, Victor Etuokwu,
paramount for cooperate customers.
said: “AccessX is an additional touchpoint to back up our customers.
“And as a bank, we are very innovative, we have a lot of our own solutions to the internet market,
“It is recognition of the fact that
and we have things like face field,
90 percent of our transactions are
swift pages and merchant enquiries
engagement with the customers is
solution for our customers.
digital and so those require support from us in some forms either on their cards, mobile apps or internet banking are given. “As we are setting up this experience centre across the country, our customers will have a point of contact where they can get support, find out what is new on digital and get speedy service that is outside of the traditional branches.
26
“As we roll out all those digital
branches for complaints, there would always be some things that they will need to refer to service engineer at the bank’s office and tell the customers something like this would be resolved in the next few hours. “The reason they do that is they would refer the matter to somebody else who is going to work on it but when you walk in here that is not going to happen because the tech skits can do it on the spot.”
NEWS FROM WEST AFRICA
TARLUE WANTS DIGITAL BANKING SYSTEM IN LIBERIA Central Bank of Liberia (CBL)
Senate for trusting us to print new
confirmation hearing that he has
Executive Governor J. Aloysius
bank notes,” he said.
served the position since 2019
Tarlue, Jr., has told a Senate confirmation hearing that the banking system in the country
The CBL boss suggested that the use of mobile money system helped
and was reappointed by President Weah.
them greatly during the ongoing
According to him, when he took
COVID-19 crisis, where people will
over in 2019, the exchange rate
Appearing before the Senate
not be able to stand in huge cues in
was high and there was inflation,
Committee on Banking, Finance,
baking halls as a way of observing
saying in order to have some of
and Currency during his
social distancing.
these settled, Liberia joined the
needs to go digital.
confirmation hearing, Tarlue said the printing of money is not the solution to the problem here.
Governor Tarlue explained that there are not many banks in the various counties, lamenting that
International Monetary Fund (IMF) program and was asked to cut down staff and carry on salary harmonisation.
Tarlue, who was concluding a
four counties have a single bank
tenure as CBL Governor when he
and it is very difficult for the people
Dr. Dukuly explained further
was nominated again by President
in the rural areas to get their
that CBL cut down 274 staffers
George Manneh Weah, informed
salaries.
because the program was a lifeline
the Senate Committee that US$ 6m has been allocated for the digital banking project, already approved by the World Bank. According to him, since he became governor of the Central Bank, he has put a prudent financial system in place because he observed that the system has been abused for so long.
According to him, the digital system will be a great help, noting
for Liberia’s economy and they couldn’t miss being a part of it.
that “My legacy is [to] change
He said in 2919, he took over with
Liberia to a digital country.”
no handover notes, adding that
Governor Tarlue continued that the CBL is working with Nigeria, Ghana, and other African countries, noting that buying rice and other
the domestic production was weak and there were about $23 million dollars outside the bank, though it is now about $20 million.
things from Nigeria and Ghana will
Dr. Dukuly concluded that since he
be cheaper in transportation than
took over in 2019, there has been
Mr. Tarlue explained further
getting it from those other faraway
a growth in the microeconomic
that during his first term as CBL
countries.
system, saying Liberia has reached
Governor, he put a biometric tracking system into place in order to know who goes to work or not, and also an appraisal system into place. Tarlue further stated that they have a three-year strategic plan to lead the CBL forward, noting that the CBL Act was approved under his leadership while the first four billion Liberian Dollars were printed under his watch. “Thanks again to the Liberian
For his part, Deputy CBL Governor for Economy Policy Dr. Musa Dukuly said during his
the Economic Community of West African States (ECOWAS) target.
THE NEED FOR A DeFi ECOSYSTEM IN AFRICA Africa is a continent where most of the population is unbanked or does not have any bank accounts. Financial systems and banks have tried to change this status quo but have remained unsuccessful so far.
•
work with organisations to
service that not many people
provide people with necessary
around the globe need. This is
loans, but the interest rates are
because people in countries such
pretty high.
as the USA have enough banking
Finally, bureaucracy is a significant obstacle that people must overcome to create bank accounts and perform simple banking functions.
These are the main challenges people face while trying to leverage The primary reasons for this are as
banking resources for sustainable
follows:
financial growth.
•
Most of the banking infrastructure and processes are poorly built and handled.
•
Conventional banking systems are challenging to build due to a lack of resources that can help people understand finance as a subject on a deeper level.
•
Moreover, the physical banks are not available everywhere, thus taking a toll on the people due to the cost and time wasted
•
Africa is a continent with a majority of the population under the age of 35 that has a higher usage of smartphones and the internet. This increases the opportunities for them to access banking services remotely via unconventional and innovative mediums such as DeFi.
Why Africa Is A Potential DeFi Hub
traveling to one.
According to Cardano CEO Charles
There are certain banks that
Hoskinson, DeFi is currently a
28
systems that are fast, efficient, regulated, and provide all the services necessary for the citizens in a relatively straightforward manner. Hence, shifting to a completely different finance paradigm will be difficult for these people, and there would be resistance from them since their needs are already being met. The same logic can be applied to people in Africa who do not get help from any system. Although there is awareness about how institutions function in other places, people do not have institutions in place that can serve them. This makes Africa a potential opportunity for DeFi platforms to engage with the people here and cater to them since they’d be more than willing to shift to systems
Xend Finance
that are faster, cost-effective,
seen as a threat by traditional
transparent, and have no central or
banking institutions so a path
bureaucratic authority managing
needs to be charted where
Xend Finance is a Nigerian DeFi
them.
traditional institutions and
platform startup that was launched
new-age DeFi space can work
in 2019. It is the first DeFi platform
together to elevate the banking
out of Africa and claims to be the
experience for the public.
first DeFi Credit Union platform.
Advantages Of A DeFi System •
With DeFi platforms and
•
to have seamless on and off-
systems in place, the people
ramp procedures for people
who haven’t had access to
who currently possess only fiat
any financial systems can
currencies.
now access it anytime they want with just a phone and an
•
ones, it still is prone to smart
The platform will be run
contracts and poor security
with tech, and hence there
risks.
will be more autonomy and independence for people who
•
•
to-use and understandable UI/
wealth.
UX so that people from all walks of life can avail and leverage its
It’ll be faster, cheaper, and People can perform P2P transactions such as lending, borrowing, etc., and without the need for a central authority or intermediaries.
Challenges Of A DeFi System •
There might be a resistance to change and mass adoption of this innovative system.
•
DeFi systems should have easy-
want to manage their own
benefits for their growth.
relatively more secure. •
Though the system is more secure than the traditional
internet connection. •
The DeFi system will also need
•
Finally, liquidity on the platform will be imperative for people to incur lower fees and obtain currencies at a minimal price.
Areas Where DeFi Can Be Used DeFi systems in Africa can provide access to banking, getting mortgages or loans, wealth management tools, investment
Since DeFi is a relatively new
opportunities, solutions for small-
space, there can be programs to
to-medium sized businesses,
usher people into the space and
insurance, and real estate too!
The company participated in the Google Launchpad Africa Accelerator and Binance Incubator Program and obtained funding of $2.2 billion. Built on the Binance Smart Chain, the platform looks at currency devaluation as a use case and wants to leverage decentralized systems to provide better financial services. The platform will launch a $XEND token that will provide additional benefits to the users by providing them rewards for performing operations on the network. Furthermore, it will also enable decentralized governance in their finance ecosystem.
Conclusion In essence, Africa looks promising for DeFi platforms, and the scope is enormous. As Charles Hoskinson said, it is predicted that over 100 million users will be part of different DeFi ecosystems in the next three years.
showcase its benefits. •
Companies will need to work with government regulatory boards to co-create policies that best serve the public.
•
Usually, DeFi as a system is
With all these systems in place, people will be able to have sustainable financial growth and, in the long run, make them more in control of their future.
29
DIGITAL TRANSFORMATION
Unlocking digital
transformation to power inclusive financial services in Nigeria
H
ome to over 200 companies in just a few years, the Nigerian
Dayo Ademola Managing Director Branch International
fintech space has become widely known for developing and delivering innovative value propositions across the financial service value chain to meet the
Understanding financial inclusion The World Bank defines financial
such as mobile payments, digital
inclusion as a situation where
lending platforms, savings,
individuals and businesses can
wealth management, and much
access useful, affordable, and
more, seem to be transforming
timely financial products and
fundamentally, to challenge models of traditional institutions and infrastructure. This coupled with a youthful population and increasing smartphone penetration are contributing to the overall fintech growth. Whilst these innovations are notable, there is still the question of how to deepen access to these solutions; simply put, how do we dramatically increase the rate of financial inclusion in Nigeria? In reigniting the economy postpandemic, the role of financial inclusion has become ever-more important. 30
and are delivered responsibly and sustainably. Driving financial inclusion has been highlighted as a
needs of customers. Innovations
the financial service industry
services that meet their needs
key booster in enabling prosperity for the Nigerian economy. Following the Central Bank of Nigeria’s (CBN) National Financial Inclusion Strategy (NFIS) which was launched in 2012 and aimed to achieve 80% financial inclusion of adults at the end of 2020, a
DIGITAL TRANSFORMATION
new report released by Enhancing
the customer wins, and this will
The ultimate solution (if there
Financial Innovation & Access
further drive financial inclusion
is indeed one) to the financial
(EFInA), shows that Nigeria has
and address some of the deficits
inclusion problem in Nigeria lies
missed this target by 16% having
the “included but underserved” are
with both the public and private
achieved 64% financial inclusion
facing. EFInA in its 2020 report,
sectors. The financial services
by the end of 2020.
endorses innovation enablement,
regulators must continue to enact
digital ID and credit infrastructure,
enabling policies, and the industry
and technology talent, as actions
players must continue to innovate
that could further lead to a higher
solutions to the deficits we face -
rate of financial inclusion in
infrastructure, education, security.
Advancing financial inclusion through digital transformation Digital financial solutions need to be easily and quickly available to the financially excluded and underserved. Our insights at Branch International reveal that, particularly in remote parts of Nigeria, this goal is elusive, due to high infrastructure deficits in these areas. We further identify that technology can help leapfrog some of these deficits.
Nigeria. At Branch International, our Primary area of impact is with underserved customers - those who lack a full suite of adequate financial service options. According to a 2017 KPMG report, this challenge plagues about 98% of Nigeria’s financially eligible population. Removing the barriers is a priority for a company like Branch International as we offer a wide range of affordable and timely
Further digital transformation in
products and services to meet
the financial services sector will
the financial needs of customers
benefit both newer fintech players
accordingly.
and the incumbent banks. Overall,
Looking to the future There are optimistic projections that the financial inclusion progress rates could grow faster with the implementation of favorable policies by regulators to encourage digital transformation within the sector. Opportunities abound to innovate on business models that increase affordability, reinforce trust and expand capacity for financial services to be built and tailored to the Nigerian market. There is also an untapped space by partnering telcos, retailers, and other financial technology firms to provide services to those who are excluded and underserved. Ultimately, the regulatory landscape needs to grow the capacity and expertise to enable the digital space which in turn will support and widen the horizons of financial inclusion.
Dayo Ademola is available for interviews on the above topic and other aspects of the financial inclusion conversation.
31
DIGITAL TRANSFORMATION
Digital Transformation in Financial Services in Zimbabwe, are we there yet?
T
he payment system in Zimbabwe has gone through interesting
changes in the last decade, however most of the interesting
Gerald Munyaradzi Nyakwawa Chief Association Executive Digital Finance Practitioners Association of Zimbabwe
changes have happened in the last mobile money on the majority of
impact of interoperability of mobile
its instant payments. The reduction
money on the digital payments
of limits and the number of mobile
space to covid making an impact
money wallets citizens can have on
on financial services as well as
any mobile money operator system
payments.
was another shock. Despite all the
been in a period of interesting developments, it has been a period like no other for the financial services. Whilst the appointment of ZimSwitch as the new national switch may have come as a shock
money so as to allow citizens to transact freely and remotely maintaining physical distance as well as transacting in a healthy manner.
3 or so years. From debating the
From 2019 to 2020 Zimbabwe has
central bank’s orders on mobile
debate surrounding mobile money, the regulators were adamant that mobile money had become a systemic risk in the financial services sector and something needed to be done urgently before the whole financial services is
There is no doubt that the pandemic has confronted all industries, however it appears payments, finance and banking are at the epicenter of this experience that is “renovating” the financial services sector. Working from home has also changed the way we work, the way we trade and the way we pay. Of course, those in the financial services sector have been working meticulously to
affected.
innovate and create positive change
can equally argue that the closure
In the midst of all the limits debate,
transformation. We give credit to
of agent lines was a bigger shock.
Covid-19 happened, it ushered
covid for accelerating this change,
This especially in a country that
in a new need or a perceived
even banks that have often been
had become evidently reliant on
justification to reversing the
considered to be traditional now
to the mobile money industry, one
32
for customers through digital
DIGITAL TRANSFORMATION
have digital banking or alternative
Digital transformation in the
the central bank imposed limits
banking departments. It’s only in
financial services space is a
on mobile money accounts there
government where we have not
massive responsibility given the
was growth in terms of usage. The
seen the creation of a financial
current limits imposed by the
Postal and Telecommunications
inclusion inclined and focused
central bank on mobile money
Regulatory Authority Zimbabwe
departments.
transactions. Despite all the
(Potraz) reports that
Digital transformation in financial services has always been a fundamental part of a successful business strategy in the financial services industry. We have moved from the bank branches to Automated Teller Machines (ATM) (bank to machines). From ATMs to Bank applications (from machines back to banks through technology). Now we have mobile money and a lot of other Digital Financial Services offered by nonbank operators like FinTechs and TechFins.
Why is digital transformation important in the financial service industry? For starters digital transformations lead to sustained adoption
challenges the service providers, as customer centric organisations have to meet the ever-changing customer expectations, thus digital transformations have the potential to move customers from a lower level of satisfaction to a higher level. However, this must all be done in adherence to regulatory statutes and guidelines around consumer protection,
Not surprisingly the central bank
data protection and anti-money
reports that there was a significant
laundering laws and policies. Thus,
increase in digital payments both
as the service providers innovate
in value and in volume in the same
the regulators also have to innovate
period.
so that they are not left behind.
Digital transformations have a multiplier
and government. Digital transformations are a key driver to economic development and job creation. In the pandemic digitisation may help stop the
to interact using digital means and pay using the same digital platforms. Whilst I’m sitting in my house, I can use my phone through USSD or an application to access a store and make an order and get it delivered to my location without exposing myself to health risks.
Due to the lockdown most retailers realised the importance of a digital presence and they started setting up online stores,
economy.
retailers and wholesalers to set-
there was evidently a race among up e-commerce platforms to
The impact of Covid – 19 Involuntary adoption of digital financial services demand side
economy from contracting as consumers and businesses continue
Supply side
effect in any
of connected digital services by citizens, businesses
The total number of active mobile money subscriptions as at 31 December 2020, was 6,495,682. This represents a 2.7% growth from 6,325,666 recorded as at 30September 2020
capture sales. A sizable number of consumers were now shopping online. Similarly, the same retail shops were setting up e-commerce platforms to try and minimise the number of customers visiting their shops given that most staff were
Zimbabwe has experienced two
now working from home. In this
lockdowns and social distancing
period, we witnessed an increased
rules that have forced people to
number of dial-a-delivery services.
stay indoors only going outdoors to
Some aligned to the retail chains
buy essential goods and/or services.
others independent.
This has forced an increased adoption of digital financial services in particular and digital technologies in general. Even after
Banks on the other hand, given the same circumstances and at the same time not wanting to lose out 33
DIGITAL TRANSFORMATION
on the BoP customers affected by
by citizens, organisations and
the government should exert
the mobile money restrictions,
MSMEs especially those in the
its energy on redefining and
offered remote account opening
informal sector. We have recently
realigning outdated regulatory
services. They encouraged the use
experienced the launch of national
frameworks and institutions.
of their bank applications; this was
data centers aimed at promoting
Nurturing digital banking and
motivated by banks zero-rating
e-government. Government being
fintech penetration with the correct
data on bank mobile apps which
the biggest organisation that
communications infrastructure
means customers could access bank
interacts with citizens, this move
will aid the development of the
apps without any data credit in
will definitely help in the country’s
financial services space. The
their smartphones.
efforts to digitise.
government also needs to recognise
This is the era that we have seen
Government can promote digital
the development of smart bots
transformations and acceptance
as well as WhatsApp banking,
through all-inclusive digital
where customers can interact
policies and promoting digital
with a Bot and do majority of the
telecommunications infrastructure.
transactions that they can do on the
Just like the national data centers,
bank application as well as USSD platform.
A journey of a thousand miles. Whilst covid has pushed the country up to speed with regards to digital transformations, it will be unfair to put all the credit on the pandemic as financial services and retail chains where already working on customer interfacing technologies. The pandemic may only have increased the speed to
and understand the implications of each new business model in order to quickly react. The central bank has launched the new sandbox guidelines which are aimed at closing the gap between knowledge and application.
Challenges to digital transformations. Digital identities Identity is a precondition for participating in society by facilitating access to health and welfare systems, education, and financial and government services. With the accelerating digital transformation, a rapidly growing number of transactions is conducted online, creating an ever-more-urgent need for a digital identity.” Based on verified personal information, a digital identity can be defined as a set of digitally captured and stored attributes such as name, date of birth or gender coupled with credentials that are linked to a unique identifier to identify a person and thereby facilitate transactions in the digital world.
launch, we have noticed a lot of products coming to the market, at
It appears the future of financial
are not simply referring to a
minimum viable product stage, and
services is based on digital
program or system that identifies
they are developed and updated as
identities, in a country where
human individuals, an identity
time goes whilst it is already in use.
some citizens lack national
could consequently refer to a
identity cards but own a
person as to their car, house,
cellphone and sometimes do
phone, many other electronic
even transact on mobile money
devices, and the association and
without the required identity
relationship of these components
cards. Digital identities can
and their identities with the
help identify individuals and
human individual may simply be
their relationship with other
deemed to be a logical expression
attributes such as assets and
of ownership and/or proof of
location. Thus, the when we
residence.
The promotion and adoption of digital financial services in Zimbabwe is a factor of government preparedness and company willingness to transform. The government of Zimbabwe has a critical challenge to promote the acceptance of new technologies and ease of digital adoption 34
refer to “digital identity” we
DIGITAL TRANSFORMATION
Data sharing Related to digital identities are the lack of data sharing arrangements within and across industries. With digital identities in financial services repeated registration on account opening will be rendered outdated. To date if one wants to open a bank or mobile money account, one has to take the same documents to all the financial services providers and payment services providers where they intend to open the account. All the financial services providers will run the same customer with the financial clearing bureau at a cost before they can open an account. Digital Identity will allow for customers to register at a central database whose data is shared within the industry thus opening an account means the financial service provider will pull the data
Most systems in developing
situation in Zimbabwe seems
countries including Zimbabwe
to be encouraging closed loop
allow for data sharing after the
systems within MNOs. Dominant
fraud event has since occurred.
players within any industry tend
The time delay between reporting
to dislike any form of cooperation,
and the fraud event may result in
collaboration and interoperability.
another bank being hit by the same
They sense that any form of
fraud before the first has reported
cooperation is like handing over
or has shared the information with
their customers to competition
the central bank.
on a silver platter. They may be justified in doing so given
Dominant Mobile Network Operators It will be ideal in the digital transformations space in general and in digital financial inclusion if Mobile Network Operators (MNOs) and payments services providers would complement where they should and compete where they must. Infrastructure sharing is a great step forward when it
the historical and legacy issues surrounding the development of the telecommunications industry. However, if the goal is digital transformations, if the goal is digital financial inclusion, then there may be a need for some massaging by the central bank. Governments may need to develop incentives or regulations to encourage these pro-poor collaborations and innovations.
comes to digitisation. The current
from the central source and make an open or reject decision based on the industry available data. Zimbabwe is currently using static data sets thus making it difficult for customers to access financial services. Fraud protection can also be enhanced through data sharing. Most anti-fraud systems in financial services are based upon the data that financial institutions share. For small economies like Zimbabwe this can be critical because if two banks are hit by the same fraud it can lead to systemic impact on the monetary system. Thus, a data sharing agreement may lead to mechanisms to predict potential fraud using machine learning and artificial intelligence. 35
DIGITAL TRANSFORMATION
Way forward for Zimbabwe As we conclude etrade for all, identifies the five priority areas for digital transformations, these can be adopted by Zimbabwe and these can assist in bringing the digital age in finance and in general at a faster rate “than covid” and this will help Zimbabwe to move with the times and move with the regions. COMESA and SADC are already working on instant inclusive retail payment systems for the BoP market to promote inter and intra-regional trade. However, are our MSMEs ready to ride on this bandwagon, are they prepared to take advantage of these digital and e-commerce platforms found in the region. The five priority areas are Craft a digital compact for inclusive development – there is a need for the country to adopt a nationwide digital change program that is disruptive. Piloting it entails synchronised action. There is no doubt that in a country like Zimbabwe reconfiguring and restructuring an economy will result in some form of resistance, maybe from business as mentioned above or from political corners. In an almost polarised economy, the starting point can only be by achieving buy-in from
change in technology impacts peoples’ lives. Thus, any change that does not place citizens at the centre of socio-economic change can lead to social unrest. Even in instances where the change is for the greater benefit of the people, if they do not understand it, it may be deemed to be anti-people for example
be developmental for technology to include the bottom of the pyramid in mainstream economics it must be able to reach everyone on the economic pyramid. Govern technology for the future – in technology, change is the
mobile money in Zimbabwe was
only constant and regulators
done to minimise the potential
and policy makers should be
systemic risk that was now
tech-savvy. Recently the central
associated with mobile money
bank has come up with sandbox
but people did not understand it
guidelines. It is critical that in
and an economic decision was
the sandbox both the fintech
deemed to be political.
innovator and the Reserve Bank are learning from each other.
The pace and intensity of
Regulation has a tendency to
change means it’s all the more
follow innovation however when
important that people are at the center of the digital future – not the technology. Build the digital essentials – Digital financial services, digital products and services cannot be created in a vacuum there is need for the basic components to be in place. Does the country have the necessary infrastructure, are companies and the government willing to invest in technology?
Having reliable infrastructure, infrastructure sharing arrangements and
and business and to balance
interoperable systems means
tradeoffs.
that firms and service providers can focus on their core business,
digital future – as witnessed in
without having to build an
Zimbabwe when mobile money
enabling environment from
was launched in 2011 any rapid
scratch.
36
technologies – for technology to
the closure of agent lines on
all players, political society
Put people at the center of the
Reach everyone with digital
you govern for the future the gap by which regulation follows innovation is reduced.
NEWS FROM SOUTHERN AFRICA
by Covid-19 pandemic.
“The smaller banks don’t cater
Positioned to compete with
and typically have a narrow
BOTSWANA POST ENHANCES EXISTING NETWORK WITH SOFTWARE GROUP’S AGENCY BANKING SOLUTION
focus like just the high- or low-
Software Group, a global
income groups. We’re targeting
technology company specialised
individuals in all income groups
in digitalisation and integration
and businesses.”
solutions for the financial
DIGITAL-ONLY BANK ZERO OPENS IN SOUTH AFRICA
offering for individuals comes with
Digital-only Bank Zero has opened
looking to enter the lending market
for business to individual clients and firms in South Africa, which is charting out plans to revive its economy from the damage caused
the country’s traditional and challenger banks, Bank Zero was originally planned to be launched by end of 2019, but was later pushed to end of 2020 and finally
special features such as a patent to stop card skimming and a facility to befriend accounts. The mutual digital bank Zero is not right now. Bank Zero chief executive Officer Yatin Narsai was quoted as saying: for such a wide target market
to 2021.
The bank is one of the last to
Marked by little marketing, the
a group of newly licensed banks
bank launched an account for individuals and business customers and has the same fees for both the
commence its operations among in the recent years, including TymeBank and Discovery Bank.
industry, and Botswana Post, an innovator in financial, logistics, postal, communications and agency services in Botswana, today announce a new stage of their partnership which enables
segments.
It also provides zero monthly
Botswana Post to significantly
account management fees, and
improve its existing agent network
Its offering for business owners
does not charge fees for bank
via Software Group’s market
notifications.
leading Agency Banking platform.
also comes with integration of Xero accounting software, while its
Partners since 2018, Software Group and Botswana Post have helped the government in its mission of easing the disbursements process for pensioners and other vulnerable groups through digital means – effectively paying out to over 115 000 recipients each month. The digital technology not only saved time and improved convenience for the vulnerable group, but also proved viable for protecting their health during the COVID-19 crisis. Building on the existing infrastructure and utilising the full capabilities of Software Group’s robust Agency Banking
38
NEWS FROM SOUTHERN AFRICA
CASH IS KING – BUT DIGITAL PAYMENTS ARE COMING FOR THE THRONE
use of cash by just 8 percent, for
Even with a high banked population
further significant differences.
and a multitude of electronic
For example, if South Africa’s 16
payment options available, the
million daily transport commuters
Clifford Lekoko, Chief Commercial
average South African still use cash
were able to pay by scanning a QR
Officer at Botswana Post, said: “We
for daily purchases and payments
code instead of counting out cash
are pleased to have seen our agent
with an estimated 78-80% of
– with the transaction reflected in
network improve the lives of senior
transactions being in cash.
their accounts in real time. Not only
platform, Botswana Post will be able to quickly scale their agent network, improving the efficiency of their delivery and financial services. The institution expects to be facilitating a 6 million transaction volume within three years of implementation, while also extending its payment services to other government institutions and financial service providers.
citizens using state-of-the-art technology provided by Software Group. We plan to increase our services offerings and bring it to more citizens in line with our vision of extending our e-services channels for a modern digital economy in Botswana.” Connor Hanan, Africa CEO at Software Group, commented: “Under the leadership of Cornelius Ramatlhakwane, CEO, and Clifford Lekoko, CCO, Botswana Post has become one of the most forwardthinking institutions in Africa. We are proud to establish a long-term partnership with them in digitising their operations as the country moves towards a digital economy.”
Anton van der Merwe, the recentlyappointed COO of Ukheshe Technologies, a fintech enablement partner that works with financial
example, and growing digital transactions by that same number, means a shift of 10-15 billion transactions annually. “Looking at the underpenetrated target markets we can already see how technology can make
would this simplify the process, but it would also represent billions in value for the institutions enabling transactions,” says van der Merwe.
institutions to grow in the rapidly-
As part of its National Payment
expanding digital space, says
System Framework and Strategy
that for these reasons alone, the
– Vision 2025, the South African
opportunities for digital payments
Reserve Bank has outlined their
are set to boom.
vision for growth in financial
Van der Merwe, who has a strong background in traditional financial environments says that his appointment at Ukheshe represents the significant shift in the traditional and fintech spaces: “New technologies are expected to change the local landscape as emerging trends accelerate and traditional financial services
inclusion and greater electronic payments and within the broader financial industry these efforts are gaining momentum through new industry initiatives. Surveys show that over 70% of South Africans would want to transact on their phone, while there are an estimated 1 million of township merchants that could be included into the digital payments ecosystem.
Currently implemented in more
providers recognise the value in
than 15 countries across Africa,
partnering with fintechs to deliver
Van der Merwe says that the
Software Group’s Agency Banking
solutions quickly and efficiently.”
country already has a very high
is the most robust and mature software of this type in emerging markets. Built on the DigiWave Digital Banking Platform, it enables financial service providers to easily adopt new channels and features and drive innovation with quickto-market digital initiatives.
Electronic payments were first introduced in SA around 40 years ago, yet today, there are still many ecosystems such as the taxi environment, rural areas and townships that are cash heavy. That means the potential in the digital space is immense – reducing the
level of banked individuals, all that’s lacking is the infrastructure to accept digital payments on a large scale: “That’s where fintech enablement partners like Ukheshe come in. New solutions such as real-time QR code payments and recently-launched 39
NEWS FROM SOUTHERN AFRICA Whatsapp payments, in partnership with banks and retailers, demonstrates how
INTERNAL PAYMENTS FRAUD ON THE RISE AND COSTING SA BUSINESSES
large, traditional
South African businesses, already
relatively high likelihood of payments
financial institutions or
under severe economic strain, are now
fraud being committed by an entity’s
any company looking
counting the costs of rapidly increasing
own staff,” says Mer.
for a payment solution,
internal payments fraud. According to
can keep up with the
Ryan Mer, Managing Director, eftsure
rapidly changing needs
Africa, a Know Your Payee™ (KYP)
of consumers.”
platform provider, the number of
He says that such partnerships combine the agility of smaller
recent high-profile cases before the courts only partly reflects the true scale of the problem.
He adds that while the amount of business transactions taking place online is constantly growing and working from home is now commonplace, business controls have not kept pace with digital transformation. This has led to
fintech firms with
Estimates suggest that it costs the
increasing demand for security and
the reach and trust of
private sector more than R2 billion
anti-fraud solutions.
traditional financial
every year to combat theft and fraud.
institutions, bringing
According to a PWC report, South
customer-centric
Africa was ranked as having one of
solutions to market with
the worst white-collar crime rates in
greater speed and ease.
the world. A similar study conducted
Conversely, our digital
by the Association of Certified Fraud
payments solution,
Examiners found that a typical
Eclipse, can also work
organisation loses at least 5 percent of
entirely independently
its annual revenue to fraud. The same
too. Through Eclipse,
study also found that once victimised,
Ukheshe’s locally
an organisation is unlikely to recover
developed universal
the losses. “Not only do South African
fintech API, the
businesses have to contend with the
company has enabled
threat of external bad actors, but the
card issuing, made up of three telcos, six banks and fintechs, 334 029 merchants and 2 271 880 apps. Payments that eliminate the inefficiencies and hidden safety costs associated with cash payments are already here, with their implementation just around the corner – and a more inclusive society along with it. 40
Positions that involve administering payments to creditors and suppliers, overseeing and processing invoices and electronic payments, and capturing bank statement transactions present a higher risk for businesses. “It’s crucial organisations implement best practice anti-fraud strategies to prevent, detect, investigate and remediate fraudulent activity before it becomes so serious it endangers the very survival of the business.”
NEWS FROM SOUTHERN AFRICA Mer points out that a recent
by automating manual
case of an East London
controls, placing less
personal assistant being
reliance on the manual and
jailed for 15 years for
human factor, giving those
stealing R11.5 million from
responsible for releasing
her employer highlights
payments confidence that
that many organisations
processes and controls
are too complacent by not
are in place and working
implementing enough
effectively prior to releasing
measures to tackle internal
payments.
payments fraud. “Often, businesses tighten certain payment approval policies without implementing a longer-term strategy and the necessary technology to truly make an impact. Despite an overwhelming majority of businesses having vendor onboarding, management and payment controls in place, cybercrime and payment fraud is a daily occurrence and a massive challenge for businesses. While the right controls might be in place theoretically, clearly definite gaps that need to be addressed” he says. Another hurdle organisations face is that those responsible for reviewing and releasing payments, such as CFOs, financial managers, senior managers, and directors, are under huge time constraints and don’t have capacity to check packs of supporting documents in detail on a regular basis or verify all banking details. At its core, eftsure helps protect organisations against financial fraud
In addition to understanding the risks of internal fraud and
CROSS-BORDER PAYMENTS GAMECHANGER BankservAfrica’s transactions cleared on an immediate basis (TCIB) scheme could be a game changer for low-value cross-border payments following successful piloting in the SADC region. The TCIB scheme allows immediate clearing of single credit “push” transactions that are settled on a deferred basis.
boosting existing security,
The scheme provides an e-payment solution in
Mer advises businesses to
an environment in which many people do not
invest in tech solutions
have access to the formal banking sector.
with sufficient audit logs built in so that every action performed is recorded and can be traced back to the staff member responsible. “This is where eftsure’s automated check, with the click of a button, gives those responsible comfort in seconds as to the integrity of the payment information, prior to payment release, he says.” “People combined with technology and sound business processes are at the frontline of fighting fraud and mitigating risk. By building a culture of security within an organisation that ensures cooperation between employees and technology, it is significantly more difficult for bad actors, both external and internal, to commit white-collar crime,” says Mer.
Several companies were engaged by BankservAfrica to participate in the TCIB testing phase, and these included Virtual Technology Services of Namibia, which is described as a pioneer of e-money and e-payments solutions with its PaynGo product. As part of the pilot project, participating entities were requested to demonstrate their ability to use their technology platforms to initiate cross-border transactions between several SADC countries. On 30 July 2021, VTS became the first organisation in SADC to successfully do this by transferring the amount of N$20 in local currency from their digital e-money platform located in Namibia to a bank in Zimbabwe. The transaction was processed in real-time, meaning the Zimbabwean recipient received the money within seconds of the transaction being completed. The transaction was automatically converted to local currency at withdrawal point.VTS technical director Mr Paul Rowney said, “The 30th of July was an exciting, mind-blowing day for VTS and the entire participating regional team, to be part of this new initiative and for being at the forefront as the first of two companies located in Namibia and Zimbabwe to successfully send and receive payments over the TCIB scheme.” 41
NEWS FROM SOUTHERN AFRICA
TOP AFRICAN REGIONS SET TO BECOME LEADING STARTUP AND INVESTMENT HUBS On the back of Cape Town being
Senegal; East Africa led by Kenya;
class are open to new fintech
recognised as the tech capital
and North Africa dominated by
propositions as we have seen from
of Africa, topping international
Egypt, as key African geographies
the likes of Flutterwave. While
rankings for foreign direct
to pay close attention to. Each are
in Nairobi, an influx of foreign
investment strategy, Ian Lessem,
quite different, with some of them
direct investment and financing
Managing Partner at HAVAÍC –
tackling more regional challenges
from national development
investors in early-stage, high-
and others offering globally scalable
finance institutions, coupled with
growth technology businesses –
solutions,” notes Lessem.
international skills transfers,
says several other African cities are quickly emerging as leading startup and investment hubs to watch.
A diversity of businesses are emerging in critical sectors such as e-health, fintech, security
have contributed to creating a flourishing startup environment,” says Lessem.
“Startups in Nigeria, Kenya,
and education, as African startup
He adds that Cairo’s access to
Egypt and South Africa raised a
investment continues its upward
favorable funding and product
total of US$625 million last year.
trajectory, having increased year-
distribution from the Middle East is
Of those, Kenyan startups raised
on-year for the past five years.
unique on the continent. “Egypt’s
US$191 million, the most of any
“West African hubs like Lagos have
large local customer base and
other African country, according
benefitted hugely from locals being
proximity to major international
to Disrupt Africa’s African Tech
skilled abroad and returning home
hubs in the UAE, Qatar, Oman and
Startup Funding Report for 2020.
where a young, bourgeoning middle
Saudi Arabia make it a strong B2B
Distinct startup geographies are emerging in Africa, each with the potential to become its own powerhouse,” he says. In addition, the World Bank predicts that two thirds of the world’s GDP growth will occur in cities over the next fifty years. Lessem says Africa’s rapid urbanisation is a welcome development as cities foster greater economic potential, business collaboration, and technological innovation needed to leapfrog traditional infrastructure, which can result in creating thriving tech ecosystems. “HAVAÍC sees Southern Africa, dominated by South Africa; Anglophone West Africa, led by Nigeria; Francophone West Africa, dominated by Cote d’Ivore and 42
NEWS FROM SOUTHERN AFRICA
(business to business) and B2B2C (business to business to consumer) regional player. Of course, South Africa’s strong blue chip corporate base and financial and digital infrastructure have ensured the country’s startups have been able to enter developed markets with their seamless tech competing toe-to-toe in international markets.” “In both English and French speaking West Africa, there are significant B2B2C opportunities, thanks in part to the development and growth of cities like Dakar,
MOBILE BANKING CHATBOT INTRODUCED IN ZIMBABWE Zimbabwean financial services provider First Capital Bank has announced the launch of Alisa, a WhatsApp banking chatbot, bringing together machine learning and cognitive computing technologies to provide customers and clients with various banking services. The bank says that this mobile application brings peace of mind with unique privacy and security settings, end-to-end encryption, and identification and verification processes prior to the completion of any personal banking transactions or information sharing.
Abidjan and Lagos. Ultimately,
Interactions with Alisa are free, with charges applying
massive improvements in
to transactions depending on their tariffs.
infrastructure, maturing financial markets and broader access to higher education are laying the foundation for Africa’s tech hubs and signal an exciting future for the continent’s startups who prove time and time again they can compete with the
The bank has also introduced reverse billing through what it calls a zero rating solution that allows Econet customers to access their internet banking and mobile banking app at no cost to them. This development, says First Capital Bank, makes it one of the few banks currently offering this service.
best in Silicon Valley, London and
The consumer banking director Angela Kamhiriri
Singapore,” Lessem points out.
has described the current developments as being
HAVAÍC’s own investment thesis is centred around investing in local African tech businesses that have
in line with the predominant digital banking global standards which will allow customers to transact with ease.
the ability to scale and service both
Ironically, however, many customers who need such
regional and global markets. “Our
a service may have trouble accessing it. According
ability to invest locally, strategically
to the Zimbabwean Sunday News, Zimbabwe’s vice
nurture, and help internationalise
president Constantino Chiwenga has called on mobile
our portfolio is what sets us apart.
phone operators to provide network connectivity
More than ever before, investing and
to marginalised communities, pointing out that
supporting local, growing innovation
the government wants connectivity to support
with the potential for global
programmes such as online educational platforms,
elevation, is a smart investment
electronic passports and e-licensing.
decision at the heart of Africa’s future,” Lessem says. 43
API BANKING
How is API
Driven Innovation
I m p r ovin g
the Banking Experience? he popularity of API banking systems is driving more and more innovation,
pay bills all from an app on your
Uzo Onumonu Digital Transformation Executive
smartphone. Your service can be used to do whatever you want it to. There are no limits.
particularly among fintechs. Major players want APIs to be successful in this space. Banks are accelerating the adoption of API technology to improve transparency and increase customer
provide a seamless digital banking experience. The API Banking service lets you offer new digital services to
satisfaction.
consumers and businesses in ways
By opening up bank account
make your products and services
information to third-party service providers, API Banking allows financial institutions to 44
you never could have imagined and more profitable. With API banking, you can apply for a loan, transfer money between countries, and
Banks around the world recognise the potential of APIs in transforming financial services. In 2015, a survey by software firm Fundica found that nearly 60 percent of banks had already deployed or were planning to implement APIs by 2017. Accenture said that 34 percent of financial services institutions had started using APIs and predicted a rise of 56 percent by 2017.
API BANKING
The term “API banking” is popping up in conversations across the industry -- and this is hardly surprising since banking is a sector that continues to undergo continuous innovation. API or Application Programming Interface is a set of networks and protocols that allow machines to communicate with software or the internet. More than just a communication protocol, APIs are responsible for bridging the technological divide between Effectively, financial institutions
with the introduction of API
have already experienced the
(application programming
disruptive power of digital
interface) enabled bank services
innovation and are reaping its
and technologies. This has turned
benefits. Financial services that
bankers into masters of their
leverage APIs as the primary way
fortune and also empowered them
to draw value from external data
to contribute significantly to the
have a competitive edge over their
global economy through innovation
competitors.
and entrepreneurship. Not only that but they are empowered by it
Technology-Banking is driving
because it enables them to innovate
innovation because it inherently
faster and more efficiently. The
drives market disruption.
creation of new banking services
Innovation comes from combining
has become possible due to open-
technology and business in new
source software (OSS) standards
ways that solve problems or create
and ecosystems that allow for
value for customers and businesses.
the seamless integration of new
The trend is further accelerating
services.
specialist software and nonspecialist software applications. With just a few lines of code, an API can be transformed into a working solution for your business requiring high availability and distributed systems, automatic failover between clusters, and the ability to message other computers on the internet using your domain name. Banks now allow third-party platforms to add more value to their user and open up new business opportunities based on the API Banking Technology that is transforming the financial industry.
45
API BANKING
The banking industry is
The Internet of Everything (IoE)
increased utilisation and wealth of
continuously growing at a fast pace.
revolutionised consumption
information available from these
Innovations in the banking space
three years ago with the arrival
systems. Banks are making use of
include API-first banks, banks that
of smartphones and the apps
this knowledge and using it to make
serve as developers, and more. Even
that came with them. This has
risk assessments more informed
large institutions are no longer
given birth to a new kind of
and efficient. For example; by using
satisfied simply by serving their
industry – one built on APIs. An
machine learning technology to
customers.
API (application programming
analyse credit default risk they
interface) is just a way to get
could reduce their investment in
It’s no secret that financial
software or internet services to
vulnerable clients and increase their
institutions are using technology
work with your company’s systems.
returns on asset protection.
to improve their services and their
When you need a new way to buy
bottom line. However, with so many
something from Amazon, for
The banking industry is undergoing
different companies using the API
example, you don’t just request
a historic disruption as FinTech
space for different purposes, it
a shipping application – you also
startups redefine how traditional
can be challenging to understand
make an API request. The company
banking is done, inside and out.
each service’s impact on the global
can fulfill that request – send an
Payments are the heartbeat
economy. API Banking--the use of
email with tracking information
of any bank, and vital to their
an unstructured, interconnected set
about your order, or deliver the
security. Banks must get in front
of Internet services and businesses
product to your doorstep – because
of these changes and find ways
as a way to improve financial
it understands what type of product
to successfully leverage all this
services delivery--is one-way
you need, and has information
innovation. Although FinTech
banks are trying to create new
about your purchase via a previous
companies are moving quickly
economic systems that support
API request made by someone else.
to build technology solutions
a diverse set of customers while
and expand their customer base,
reducing their vulnerability to
While the financial industry has
existing infrastructure providers
disruptive changes in the financial
been focusing on increasing its
have not kept pace with this change.
sector.
transaction capacity and providing
As a result, they will need to
better services, local financial
dramatically improve speed.
There are several reasons why API
services providers have also
banking is becoming the wave of the
seen the need to innovate to stay
future. The first and most obvious
relevant in their local markets. And
reason is cost reduction. Companies
one of the most effective ways to
can automate customer support
do so is leveraging the increasingly
and other processes with the aid
powerful Internet of Things (IoT)
of an API, improving the quality of
technologies.
service provided to customers while lowering costs. A good example
Due to the increasing popularity
of this is how Facebook keeps
and utility of APIs, financial
track of your emotions using an
institutions are now seeing a need
API, which allows the company to
to create better user experiences.
offer customised content based on your mood or situation. In turn,
The use of APIs and the integration
this allows users to have more
of machine learning and data
interaction with the companies they
science into financial services
already know and trust, making
hasn’t been happening in an inertial
them more likely to do business
way. Innovation is accelerating in
with them.
the financial sector because of the
46
Banks and payment service providers (e.g. Visa, MasterCard) are exploring ways to modernise their infrastructure to offer better customer experiences. In conclusion, the banking and finance sector is doing a lot of work to simplify their systems and make them more agile. Simple and open API-centric architectures can drive down costs, improve business agility and make systems flexible.
FINANCIAL SERVICES
FINANCIAL SERVICES FOR GIG WORKERS
N
aserian is a mother of
transitioning the workforce of
employs over 36,000 gig workers.
two and has been an
offline gig workers towards more
It is projected to grow at an
independent contractor
accessible, competitive, and
annual rate of 33% in five years,
working on both online and offline
consistent job opportunities on
almost twice the global growth
short-term projects for about three
online gig platforms such as Uber,
rate, reaching $345 million and
years, and only receiving payment
Sendy, Fiverr, Upwork, Glovo,
with close to 100,000 gig workers
upon completing the work. Unlike
Fundis, Red Ant Directory etc.
by 2023. High mobile, internet,
her friend Taipei, she is not a permanent employee who earns a monthly salary and is eligible for
According to a recent report by Mastercard, the global gig
benefits.
economy is valued at $193 billion
Naserian, like many people in
annual rate of 17.4% and is
Kenya, Africa and around the world,
forecast to be worth $455 billion
is a gig worker. The concept of gig
by 2023. It includes 40.7 million
work is not new, as gig workers
gig workers on various digital
have been in existence since time
platforms globally, generating
immemorial. However, with global
$193 billion in gross volume and
digitisation and technological
$127 billion in disbursements to
advancements, the idea and
gig workers, a trend that is similar
nature of work is changing. The
in many countries.
online gig economy has steadily grown and is transforming how people think about and access work opportunities. It is slowly
and is growing at a projected
Mercy Corps reports that the Kenyan online gig economy is valued at $109 million and
smartphone penetration, a growing youthful population of approximately 20.1%, and a highly unemployed workforce looking for work supports this growth. With so many young people looking for employment, innovation and adaptation in the job market are critical. Only 17% of the working population is formally employed, with a majority (between 15-34 years old) accounting for 84% of the unemployed. Despite the rapid expansion of the gig economy, there is limited research on essential financial Services for gig economy workers,
FINANCIAL SERVICES
Abigail Komu Digital and Financial Inclusion Consultant
Gig workers have unique financial needs that distinguish them from permanent employees, including inconsistent and unpredictable income patterns, the need to access credit, insurance, savings and investments, payments processing
which has led to little investment and development of their financial needs. For workers like Naserian, several factors that can affect their ability to find work and generate an income. Unlike Taipei, Gig workers are not permanent employees of online platforms thus may not have access to benefits such as insurance, savings, and investments. They may lack knowledge of, accessibility to, and ability to manage these facilities outside permanent employment. However, this is not the case in every country, and some countries are passing bills outlining how gig workers should be treated. The U.K’s Supreme Court upheld a ruling that Uber drivers were workers, not independent contractors. Uber now treats all 70,000 of its drivers in Britain as “workers” are entitled to a minimum wage, holiday pay and pension plans. This ruling is poised to have significant implications for the broader gig economy.
Financial education & wellness Fintech’s focusing on financial education and wellness help gig workers learn about, manage, save, and invest their money better by understanding their finances, lifestyle, motivations, and values behind their concept of money.
and tax requirements. Many gig
A fintech company called Power
workers are underbanked and lack
helps gig workers across Africa
access to resources that can grow
control their financial well-being
their financial health and wellness.
and relieve finance-related stress
Availability of and access to the
by building their digital financial
right financial services can help
profiles and credit scores and
cushion them during periods where
eliminating debt. Another fintech,
they have no work, given that many
Steady, is an income advocate and
of them rely on payments from
financial health platform for the
Gig work to make ends meet. The
independent gig workers helping
very nature of gig work, especially
fill the underemployed income
during the coronavirus pandemic,
gaps, defining an individual’s
has resulted in vulnerability and
portfolio of work in the Future
financial exclusion for underserved
of Work, and providing curated
workers.
inclusive finance. Steady lets users
The growth of the gig economy and Fintech go hand in hand. Financial technology (or fintech) providers are at the forefront of providing innovative solutions to address the inaccessibility of financial services for gig workers, especially where incumbent institutions have fallen short. By better understanding the different segments of the gig economy and their unmet needs within those segments, the following Fintech’s have begun to provide relevant and timely solutions that generate real value for a significant portion of gig workers. However, there still is room to develop more inclusive and
link in their bank data so that it can track their income across multiple jobs.
Financial account A key pain point for gig workers is accessing a financial account that meets their needs. Gig workers receive payments in numerous currencies such as USD, GBP, or EUR, which can be a cumbersome process to manage. Platform providers should work with many payment platforms like Payoneer, Wise, Skrill, PayPal, etc., to enable anyone, anytime, anywhere globally to get paid near real-time.
innovative solutions.
49
FINANCIAL SERVICES
Another example is the Moves
cryptocurrencies such as Bitcoin
their outstanding invoices by
Spending Account, an online bank
and Ethereum as a medium of
paying a 2% fee of the total invoice
account designed explicitly for gig
exchange by some users and the
to insure these documents against
workers looking for an easy but
launch of Central Bank Digital
delayed or missing payments.
powerful way to manage their gig
Currencies (CBDCs), e.g., the U.S.
Shine then contacts firms with
earnings all in one place. It helps
digital dollar, E.U. digital Euro, the
outstanding amounts on the gig
reduce the financial risks stemming
Chinese Digital Yuan etc. These
workers behalf to get these funds to
from the unpredictability and
developments could impact how gig
waiting gig workers faster.
volatility rooted in gig work.
workers would like to get paid.
Additionally, Fintech’s like Cogni, a digital bank designed with gig workers in mind and with features that traditional banks do not offer, provide curated financial and lifestyle services on their mobile apps.
Payments
Invoicing Paper-based invoices can cause financial friction, both for gig workers freelancers and the platforms with which they work; therefore, invoices need to be automated using technology and advanced learning tools such
Gig workers want access to income
as artificial intelligence. French
as soon as possible after the work is
FinTech Shine.fr is a mobile
done, which helps alleviate income
bank that offers a management
volatility. Fast and easy access to
platform to gig workers for online
payments is essential to keeping
banking with contract and invoice
gig workers engaged, happy and
management. It has an invoicing
satisfied. Pay-out options influence
feature that allows users to insure
gig workers initially to choose to work with and how long they will stay. As the gig economy grows, so will the importance of providing flexible payment solutions by paying people the way they want to be paid will also increase. Gig platforms need to find new ways to differentiate themselves from their competitors by using innovative payment platforms and services, offering real-time payment rails, bypassing slower batch payment systems to speed up payroll by 1-2 days. Additionally, it is important to note that payment systems are continuously evolving. Gig platforms must monitor global current and long-term trends and anticipate the impact of any changes. One exciting development is the adoption of unregulated
Filing taxes GGig workers’ pay taxes, and some apps help them determine how much they need to pay, based on the specific country requirements. Workers can use business expenses using apps like Expensify, which capture Track and generate expense reports, after which they can determine how much they owe as tax. Another option is the free Mint budgeting app which offers basic budgeting features and provides bill payment reminders
FINANCIAL SERVICES
and customised alerts when over
employment benefits at all and that
investment suggestions based on
budget. Some tax apps, including
nearly 30% of gig economy workers
individual goals and risk levels
Track, use machine learning to
did not have an emergency fund.
and allows one to make the final
estimate and auto-remit taxes to
This means they had no savings of
decision. Betterment is a wealth
the tax regulatory authority for gig
any kind, leaving them vulnerable
management app that enables
workers, entrepreneurs, and small
and more susceptible to financial
goal-based investments. One can
business owners.
hardship should they miss work
set goals for, e.g. a dream home,
due to an emergency. Therefore,
wealth building, and retirement.
it is critical to have enough money
The platform uses Robo-advisors
saved up in case of an emergency.
to provide investment suggestions
Digit, Chime, Cowrywise, etc.,
based on these goals. Lastly, eToro
can help all gig workers build an
allows users to trade currencies,
emergency fund to cushion them
commodities, indices, and stocks.
from future shocks.
These are just a few of the many
Savings The path to retirement for gig workers is less certain as it lacks the predictability that is important in retirement planning. Gig workers in many African countries report that their savings are quickly depleting. Their families are drawing closer to a total lack of basic needs, i.e., food, shelter, and clothing. Therefore, they must set some money aside and build up savings for a rainy day. A study conducted by Stash Financial, Inc. interviewed 1,240 current gig economy workers and found that the vast majority receive no
Investments Gig workers often have to develop
investment options available.
their investment portfolios to
Credit
create wealth. The good news
There is a need for mobile or
is that there are many local and international investment and wealth creation and management options available today. Gig workers can invest in local shares, bills, bonds, money market funds, startups etc., and with the democratisation of finance, they are also free to invest in international markets. Many apps offer the opportunity for fractional investment, which means one can start investing with as little as, or less than, a dollar. One option would be investing via digital platforms such as Robinhood, which provides a commission-free investment platform. This means one can trade in stocks, ETFs, gold, cryptocurrency, and options without paying any fees. One can also earn a 0.3% annual interest on unutilised funds in the account. Stash works for those who are new to investing but need help getting started., It offers options for roundups, periodic investments, and auto-investments. It provides
digital lending products. This space has historically been home to predatory lenders. However, several startups have started introducing consumer-friendly products to help address this. Examples include Prosper and Upstart. Consumers without digital credit profiles have fewer alternatives to access credit, leading to a vicious debt cycle. Fintechs like Qwil are needed. It focuses on providing working capital for gig workers and works with marketplaces, payment providers, and human resources platforms to offer cash advances to their users. Qwil’s underwriting process conducts identity verification, fraud checks and assesses gig workers’ creditworthiness by capturing data regarding a freelancer’s invoicing status.
FINANCIAL SERVICES
Escrow services
Insurance
The Gig Economy Tracker reports
Gig workers are complicated to
pockets, sell assets or borrow
that Gig workers are accustomed to
insure due to their on-demand
money to cater to medical services
hunting down late payments from
and unpredictable nature, lack of
for themselves and family members
companies, with 71% noting they
structured contracts, and poor and
when the time comes.
have worked with firms that have
incnsistent pay. Many gig workers
paid them late or not paid at all.
do not have suitable healthcare
They often don’t have protection
insurance despite the high health
if a client refuses to pay for work
risk present in their day-to-day
done or cancels at the last minute,
work. For example, motorbike
and at times are forced to chase
riders who handle deliveries are in
clients down to get paid after
greater danger of being involved
they’ve completed the job. There
in accidents, which may cause
is also no guarantee of delivery for
permanent disability or contracting
the client after an initial upfront
diseases such as coronavirus due to
payment, which presents a risk to
constant contact with products and
them as well.
people. Zego provides pay-as-you-
Digital escrows work by assuring gig workers that clients are both willing and able to pay for their services. And for clients, digital escrows enable them to see if the assigned work has been completed to satisfaction before releasing the payment. Fintech companies like Paybase, Vesicash and Payscrow hold the money in trust in an escrow account. It is neither with the worker nor the client and can only be released once both parties
go insurance for drivers and riders working for sharing economy companies, including Deliveroo, UberEATS, Jinn, and Amazon, who only pay, via an app or top-up card, for cover for the hours they work. Health insurance has traditionally targeted permanent employees, with very few insurance companies providing adequate and accessible products to gig workers. Even health coverage systems such as the National Hospital Insurance
have given the go-ahead, which is
Fund, the nature of gig work may
excellent for both parties.
not offer consistent income to
52
Pilot programs can help prove that well-designed, tailored solutions are needed to meet the needs of gig workers like Naserian; however, questions remain on who should be responsible for providing these relevant solutions and to what extent. It is important to note that any innovation will need to consider mobile and, by extension, mobile money as its rails. According to the GSMA, there are 310 mobile money services across 96 countries, with over 1.21 billion users, some of who are likely to be gig workers. Africa, particularly the Sub-Saharan region, is a global leader in mobile money services with over half a billion accounts and ripe for innovation. For sure, the best course of action is a system-wide approach where public and private sectors collaborate to ensure the best possible outcome for the gig economy at large.
give yourself the power to be more
NEWS FROM NORTH AFRICA
SEQUOIA LEADS $5M ROUND FOR EGYPTIAN DIGITAL BANK TELDA Egyptian digital banking startup Telda has raised $5 million in a pre-seed funding round led by American VC giant Sequoia Capital.
Global Founders Capital and Class
Users can set up an account through
“Both countries boast a large,
5 Global joined the round for Telda,
the app with their phone number
young, talented and tech savvy
which was founded just last month
and national IDs and get an Iban
population with a strong appetite to
by former Uber engineer Youssef
and Mastercard-powered card. In
innovate,” says Robson.
Sholqamy and Ahmed Sabbah, who
its first month of operation, the
co-founded Cairo-based ride-
startup has acquired over 30,000
sharing firm Swvl.
sign-ups.
Telda has already become the first
The investment is Sequoia’s first
economy and allows Telda to
company to receive a license from
in the Mena region and the VC’s
provide everyone with access to
the Central Bank of Egypt under the
partner, George Robson, likens
important financial services so
new Banking Agents regulations,
Egypt to Brazil, where Sequoia
they can fully participate in the
empowering it to issue cards and
counts the giant Nubank among its
economy.”
on-board customers to its app.
investments.
54
Adds Sholqamy: “This funding milestone promotes the digital transformation of the Egyptian
NEWS FROM NORTH AFRICA AL BARID BANK LAUNCHES 1ST FULLYDIGITAL CREDIT CARD IN MOROCCO Al Barid Bank, the financial branch
citizens, while maintaining the
of the Moroccan post office, has
security of their transactions.
launched the first dematerialised,
seeking to digitise and simplify access to banking services for all citizens, while maintaining the security of their transactions. The new card appears to be
Al Barid Bank, the financial branch
an attempt to build up on the
of the Moroccan post office, has
unprecedented rise in the use
Branded “KLIK Visa E-card,” the
launched the first dematerialised,
of digital payment services in
card is available exclusively on the
fully-digital bank card in Morocco.
Morocco during the COVID-19
fully-digital bank card in Morocco.
Barid Bank Mobile application. It can be used to make national and
Branded “KLIK Visa E-card,” the
pandemic.
card is available exclusively on the
According to Morocco’s Interbank
Barid Bank Mobile application. It
Electronic Banking Center (CMI),
The digital bank card allows users
can be used to make national and
the number of e-commerce
to make purchases over the internet
international payments.
transactions made by Moroccan
international payments.
in a similar way to regular bank cards. It includes a card number and a three-number card security code.
The digital bank card allows users to make purchases over the internet in a similar way to regular bank
Contrary to the majority of regular
cards. It includes a card number and
bank cards in Morocco, KLIK Visa
a three-number card security code.
E-card is not necessarily linked to a checking account. Instead, it can be separately recharged and used like a prepaid card.
Contrary to the majority of regular bank cards in Morocco, KLIK Visa E-card is not necessarily linked to a checking account. Instead, it can be
bank cards reached 1.4 million in 2020. The figure represents a 43% increase compared to 2019.
ONE OF SEVERAL CROSS BORDER CBDC TRIALS The Bank for International Settlements (BIS) is encouraging central banks to take account of cross border payments at the
“This is an integrated service with
separately recharged and used like a
the Barid Bank Mobile app. The
prepaid card.
CBDC design phase. Hence CBDCs
“This is an integrated service with
currencies from other countries
the Barid Bank Mobile app. The
and the design of multi-CBDC
KLIK Visa E-card is an Al Barid
(m-CBDC) systems is an active
Bank exclusive, with fully digital
research area.
KLIK Visa E-card is an Al Barid Bank exclusive, with fully digital services,” the financial institution announced in a press release.
have to interoperate with digital
“This product differs from existing
services,” the financial institution
offers on the market insofar
announced in a press release.
France’s recent CBDC trials
“This product differs from existing
payments. On July 8, the French
offers on the market insofar
central bank announced a cross
as it targets both national and
border CBDC experiment with the
international e-commerce and
Monetary Authority of Singapore
perfectly meets the needs of our
(MAS), using JP Morgan’s
customers in terms of internet
Onyx blockchain to support the
payment, convenience, and
wholesale CBDC experiment. And
According to Redouane, the new
accessibility,” said Najm-Eddine
last month, France partnered
card is part of Al Barid Bank’s
Redouane, the bank’s chairman.
with the Swiss National Bank to
as it targets both national and international e-commerce and perfectly meets the needs of our customers in terms of internet payment, convenience, and accessibility,” said Najm-Eddine Redouane, the bank’s chairman.
strategy for financial inclusion, seeking to digitise and simplify access to banking services for all
According to Redouane, the new card is part of Al Barid Bank’s strategy for financial inclusion,
have all focused on cross border
investigate the use of wholesale CBDC to settle tokenised asset transactions 55
NEWS FROM NORTH AFRICA CENTRAL BANKS OF FRANCE, TUNISIA IN WHOLESALE CROSS BORDER CBDC TRIAL Earlier this month, the Banque
as a means to operate retail
de France partnered with Banque
transfers and paves the way for
Centrale de Tunisie for France’s
further studies between central
seventh central bank digital
banks to improve remittances,”
currency (CBDC) experiment.
said Nathalie Aufauvre, General
The trial involved a consortium
Director of Financial Stability and
led by Prosperus comprising
Operations at Banque de France.
Bank Wormser Frères, la Banque Internationale Arabe de Tunisie and its French subsidiary BIAT France.
Prosperus provided InstaClear, a private distributed ledger that was used for the transaction. The startup has been working
CBE ADOPTS RULES REGULATING CASH DEPOSIT, WITHDRAWALS INTEROPERABILITY THROUGH SERVICE PROVIDERS Rules aim to make best use of
The experiment used a
with the Tunisian central bank
blockchain-based wholesale
since March 2020 to create a
central bank digital currency to
shared system that enables cross
carry out wire transfers between
border payments between North
commercial banks in each country
African banks using the central
instead of using SWIFT.
banks as intermediaries. Tunisia
The Board of Directors at the
intends InstaClear for use by
Central Bank of Egypt (CBE)
the Arab Maghreb Union, which
has approved the rules for the
consists of Morocco, Algeria,
interoperability of cash deposit
Tunisia, Libya and Mauritania.
and withdrawal services through
The ultimate aim is to enable
service providers.
The primary motivation behind this wholesale CBDC trial was to find a way of making commercial cross-border transfers realtime, more transparent and cost-effective. Particularly for Tunisians who live and work in France sending digital Euros to Tunisia. “This operation constitutes the first use case of wholesale CBDC
North African commercial banks to make transactions via the system. While the Bank of Libya was not a participant in this trial, the central bank is also a client of Prosperus.
infrastructure of service providers, encourage electronic financial transactions, says Ramy Aboul Naga
This comes as part of the strategy set up by Egypt’s National Payments Council, headed by President Abdel Fattah Al-Sisi, to support the transformation towards digital economy. The strategy also aims to provide easy and convenient electronic payment and collection services for citizens, and would eventually enhance financial inclusion. This step comes as part of the CBE’s plan to increase the use of payment devices. Rami Aboul-Naga, Deputy Governor of the CBE, said that the rules adopted reflect the
NEWS FROM NORTH AFRICA central bank keenness to achieve the maximum benefit from the infrastructure of payment systems and services. It also encourages citizens to continue to use electronic payment methods and channels to boost Egypt’s transformation into a cashless society. Amany Shams-Eldin, First SubGovernor Banking Operations at the CBE, said these rules will enable citizens to deposit or withdraw cash with all payment cards or mobile phone wallets from all service provider outlets. They will be able to do so without being restricted to specific service provider outlets and the contracting bank. Ehab Nasr, CBE’s Assistant SubGovernor Payment Systems and Services, said that the new rules are expected to contribute to providing cash deposit and withdrawal services to about 70 million electronic payment devices.
FINTECH DOPAY SECURES BANKING AGENT LICENSE WITH BANK ABC EGYPT Dopay‘s plans to launch a next
“I am delighted that, after
generation virtual banking
rigorous scrutiny, the Central
platform are on track after the
Bank of Egypt has recognised
fintech is awarded a banking
the security and efficiency of
agent license in Egypt.
our platform and product,” said
The Cairo-based bank, on a mission to drive financial inclusion, has been awarded a banking agent license through Arab Banking Corporation Egypt (Bank ABC Egypt). In a partnership, Dopay and Bank ABC Egypt will build and implement a platform described as ‘a gamechanger for Egypt in terms of accessibility, speed and convenience of payments. Currently, 67 per cent of
This is through nearly 500,000
Egyptians do not have a bank
electronic points of sale (POS),
account, while 94 per cent have
which in turn will lead to saving the
no access to credit.
time and energy of citizens.
Businesses will be able to instantly open Dopay accounts for employees and other beneficiaries, and pay them in real-time, in accordance with
Frans van Eersel, founder and CEO of Dopay. “Obtaining this license is a significant landmark on our journey to becoming a leading virtual banking platform in Egypt. “I am very proud of Dopay’s team of innovators who have taken us successfully to this milestone and I am also appreciative of the support of Bank ABC Egypt. Being granted this license is also a vital next step to making our platform the foundation for delivery of many more new services to come.” According to Dopay, it also has extensive MENA-focused expansion plans, building on established and growing operations in Egypt.
the guidelines set by the Bank.
Its investor base includes Force
Each Dopay account provides
over Mass Capital and Dutch
a prepaid debit card, enabling
entrepreneurial development
24/7 access to funds. While,
bank FMO, as well as Techstars
enrolled businesses benefit
Ventures, Ace and Company,
from a secure and cashless
and the NN Group.
payroll.
57
NEWS FROM NORTH AFRICA
CBL LAUNCHES PROJECTS CONCERNED WITH DIGITAL TRANSFORMATION The Central Bank of Libya (CBL) has launched a set of projects concerned with digital transformation, banking system integrity, state financial sustainability, governance and capacity building. This came during the Governor of the Bank, Sadiq Al-Kabir’s meeting with a number of advisors and directors of departments in the bank on Monday. The meeting also discussed a number of files related to contributing to moving the wheel of the economy according to the vision of the National UnityGovernment, according to the CBL media office.
HUAWEI PARTNERS WITH MONDIA PAY TO ENABLE DIGITAL PAYMENT OPTIONS FOR USERS IN ALGERIA AND TUNISIA Huawei Mobile Services (HMS) inked a partnership
to serve the Africa region. We remain committed to
with Mondia Pay (www.Mondia.com) – a leading
delivering innovative digitalisation and payments
digital payment provider, that is set to provide
solutions that enable the natural progression towards
Ooredoo Algeria and Orange Tunisia users with safe
cashless societies throughout the rest of Africa”, said
and convenient payment options. Huawei device users
Simon Rahmann, CEO Mondia Pay.
can now pay for their monthly services, latest games, and favourite applications seamlessly on HUAWEI AppGallery using Direct Carrier Billing services (DCB).
Adam Xiao, Managing Director of Huawei Mobile Services in the Middle East and Africa, Huawei Consumer Business Group, said, “We are pleased
With over 2.1 billion global monthly transactions,
to partner with Mondia Pay to provide HUAWEI
Mondia Pay aims to provide users in North Africa with
AppGallery users in Algeria and Tunisia with seamless,
secure, convenient, and contactless payment options.
safe, and secure payment options. This partnership
This integration is a result of a strategic partnership
further cements our commitment to enable technology
that was formalised in September 2020 and has since
around the world and to provide Huawei users in
witnessed an increase of DCB coverage and IAP (In-
Algeria and Tunisia with convenient access to services
App Purchase) kit capabilities for global developers.
by Huawei Mobile Services.”
“We are extremely proud of our continued partnership
The service went live with multiple DCB services
with Huawei Mobile Services, and to bring Mondia
providers such as Ufone Pakistan, Vodafone Egypt,
Pay’s fully integrated digital payment technology
and Etisalat UAE.
58
LEADERSHIP
HOW IMPORTANT IS
THE ROLE OF A LEADER IN
TODAY’S WORLD?
L
eadership is critical for the future of nations, organisations and individuals. Much has and will surely continue to be written and reflected upon the topic of leadership. In my humble experience being a leader is essentially about unlocking individuals’ best potential and keeping and sustaining relationships that must absolutely work out for the benefit of the collective. In that sense, a leader’s role consists mainly of: Juggling strategic trade-offs while managing the “good chaos”, which in turn entails
Successfully striking a balance of diverse groups’ expectations and goals.
Considering the abovementioned terms and references, which should be a Leader’s main attributes? Irrespective of being a female or a male, in today’s world aspiring managers cannot expect to become respected and accomplished Leaders without demonstrating and/or training honesty/authenticity/humanity, communications skills and resilience in the face of obstacles. 60
“GOOD CHAOS” The “good chaos” refer to the many intertwined and complex factors a Leader must wisely consider. These factors can be defined as endogenous and exogenous. A traditional SWOT analysis is a useful tool to identify, distinguish and manage these factors. However, the important aspect to retain is these can either be endogenous factors, which are typically simpler to cope, and exogenous factors which can be more difficult as they represent events and/or circumstances beyond the Leader’s direct control. Why “good chaos”? It is crucial that a Leader approaches tough backgrounds with a positive, flexible and candid mindset. As it is well known, working in the context of a pandemic exposed several “new” challenges for Leaders. For instance, relocation of resources, acquiring equipment, adjustment of logistics, as measures to create
Recovery Plans). Moreover, Leaders were left with the “heavy duty” of having to adequately learn to mitigate the weaknesses and risks exposed by the advent of working in the context of an unprecedent crisis, such as social isolation, organizational cultural disconnection, family disruption, and others, which are in essence more human and socially related matters, and for which one-sizefit-all approaches are certainly less applicable.
“HONESTY/ AUTHENTICITY” With my teams we practice frankness and realism above all, “do not keep problems in a drawer”, I tell them, “not only that won’t sort them out, but will instead make them bigger and at some point, they will start to show”. Nonetheless, when a leader demands that level
the required conditions for remote
of honesty, her/him must also
work appeared, to a certain
inspire an equally strong degree
extent, easy to implement as part
of trust. “Problems and conflicts
of organisations/institutions’
will occur, its inherent of the human
BCP/BRP (Business Continuity/
existence and the evolution of
LEADERSHIP
Helga Salvaterra Peres MSc Finance & Banking | Civil Servant | Brand Founder & Creative Manager | Global and Strategic Thinker
civilisations and societies”, its often stressed during our department meetings, “what makes the difference, is how we deal with them”. This, in my view, is where emotional intelligent skills are crucial. As both the “commander in chief” and spokesperson of a team, a Leader needs to exercise self-awareness and self-regard regularly. Ultimately, a Leader is responsible for providing the tools and guidance to overcome the challenges experienced by the team, thus she/he must be vigilant, attentive, supportive, confident, vulnerable, open, inclusive, and reliable. As a two way street, trust is a key factor in the communication process among all intervenients. While team members must feel comfortable enough to convey their ideas, concerns and feedback, Leaders shall also create a safe and responsible environment for honest dialogue to take place.
“BRIDGE GAPS, DON’T DIG HOLES?” As a Leader one is usually entrusted a vote of confidence to offer direction and accomplish a vision. In that regard, a Leader’s key success factor is its ability to manage individuals and teams of individuals, which can also be her/ his main Achilles’ heel. How to address this polarity? Important literature on Leadership states that understanding the problematic is the first step towards developing an effective action plan to resolve it. In my experience, a Leader ought to account for the unexpectant and the outliers. In exercising adaptive leadership and adjusting its practices to the challenges presented by a context increasingly marked by VUCA World characteristics, it is critical for a Leader to bridge gaps rather than dig holes. How can this be attained? An ability
to embrace necessary change without missing the targets, and a predisposition to foster constant and constructive dialogue with the different stakeholders, in my experience is a “formula” that often works. What does that mean, in practice? Turning, once again, to the working in the context of a pandemic example, as an event deemed of “low probability of occurrence and high impact”, Leaders are suddenly confronted with having to make mutually exclusive decisions. In this case, honest, timely and clear communication across the board is fundamental to i) avoid unrealistic expectations; for ii) readjusting key performance indications due to significant changed assumptions; and iii) prevent exacerbating difficulties for the groups already under considerable pressure. As per the above, in an ever and fast evolving world, socially, technologically, and fortunately also environmentally, the concept of Leader has clearly and necessarily changed as well. The traditional and oldfashioned perception of a Leader, as an unapproachable, strict, threating individual was replaced by the coach, contributor and champion change agent. Studies and experience has proven that this human-focus rather than deliverables-focus mentality is contributing to improve the organisations/institutions/ society’s quality of interactions, values, and development while paving the pathway for the generations ahead. 1 VUCA World Concept (Volatility, Uncertainty, Complexity and Ambiguity): US Army College concept introduced in the 90s to explain the world scenario post-Cold War, and often applied by Organisations, Companies, Academic Institutions to explain complex and challenging scenarios.
61
AUTOMATION
IT Automation &
Leadership I
n this era of the COVID-19
Without a doubt, looking back
development. These frameworks
pandemic, safety measures
at technological innovation and
and platforms are referred to as
in the workplace or Non-
advancement, we can boldly
“no-code” systems. As a non-IT
Pharmaceutical Interventions
state that we have come a long
professional, you could do a lot
(NPIs), include avoiding touching
way in the area of software
with generating reports; either
items/devices. This is crucial in
development. As a software
structured or ad-hoc reports just by
preventing the transmission of the
engineer, I could remember
dragging and /or clicking a couple
dreaded virus. This goes without
learning specific programming
of buttons.
saying the importance of IT
languages (RichFaces, Primefaces,
automation in a workplace.
Google widget (GWT) etc.) to help
IT automation involves implementing software applications that would perform repeatable instructions or operational activities, thereby limiting human interaction with computer systems. More so, the importance of technological innovation in a workplace will continue to be on an upward trajectory because humans are in the quest of finding a better and asier way of doing things.
speed up software development on specific tasks I had. My focus is not on the fact that these development frameworks no longer exist, but to appreciate how much human efforts have been put into making things easier with each technological advancement. Nowadays, we see frameworks and platforms that help non-IT professionals to achieve their day-to-day activities (referred to business as usual activities) effortlessly without prior knowledge of software
62
Furthermore, having stated the advancement in technology and by extension IT automation, I will not fail to mention that this advancement has met with stiff opposition in most corporate organisations. One of the most important concerns of IT automation is job security. We all live in uncertain times where holding on to one’s means of livelihood is crucial due to the recent downward trend in key economic performance indicators (rise in inflation, high cost of living, etc.). As a result, staff for
AUTOMATION
whom aspects of their jobs can be
space is now fast paced because of
force who are key drivers to the
automated are often faced with
huge competition from new market
overall success of a corporate
anxiety due to the uncertainty of
entrants. Failing to automate
strategy. Staff should be made
not knowing what next if a routine
processes will mean late release of
to realise they are an integral
they have mastered over the years
a product and by the time it gets out
part of the company’s growth, as
is now subject to automation.
into the market, the market would
mundane repetitive tasks are being
have moved on.
automated away, they should be
While empathising with staff who face such anxiety , the damaging effect of lack of IT automation in an organisation cannot be over emphasised. Firstly, the
encouraged to conduct research
Henry Akintoye Lead, Application development Nigeria Inter-Bank Settlement Systems PLC
and high-order work, the type that will advance their career. Another role leadership needs to
fear of a second and third wave
play is the management of any
of the coronavirus pandemic has
resulting culture shock that may
been a major concern for every
We cannot totally separate
occur in driving the automation
government around the world. In
organisational leadership from IT
process. Staff members might
addition, mutations such as the
automation because they drive the
feel awkward not going through
delta variant of the virus likely
process. As we all know everything
their daily routine where they
means it’s a pandemic we may
rises and falls on leadership of an
have direct interaction or impact
have to live with for a very long
organisation, which means the
in completing an operational
time. WHO and other professionals
extent or lack of automation clearly
process. Occasional interference
health bodies around the globe
shows the corporate goal of the
on the process might be observed
continue to advise that the less
leadership of such organisations.
by staff that cannot help being
objects/devices we touch the
The motivation for automation
an on-looking of the automated
more we reduce the chances of
must be tied to a business goal
process. Rather than sanctions,
transmitting the deadly virus. For a
such as: to increase revenue and
re-orientation of the new way of
corporate entity to comply with this
bring down expenditure. Moreover,
working is very important at this
guideline, automation is the way
identifying which process to
point because the staff might be
to go in order to reduce/prevent
automate is very important in the
suffering from culture shock. Also,
human touch. A good example is a
decision making process, because
we do not expect this transition to
paperless office space. Rather than
automating a process which will
be a flip of a switch, structured or
carrying hard copy memos, letters,
not have any direct impact on
unstructured training should be
invites around for signing, the
cost reduction and effective use of
organised by the management to
company should invest in approval
human resources is probably not
help hand-hold staff throughout
workflow applications that would
a wise choice. Low skill work is a
the process automation journey
help digitise the process. Secondly,
good candidate for IT automation
so they can be culturally fit for the
an organisation that wants to keep
as this allows technical staff to
new system.
their staff and reduce staff turnover
make best use of their time.
must embrace IT automation. Leaders need talent working on strategic priorities daily in the workplace as opposed to drudge work that can be automated. Also, IT people whose companies keep them on monotonous work are more likely to leave - for a more innovative environment where they can grow their careers. Thirdly, IT
In conclusion, with the right vision
In addition, management has a
and strategies properly aligned
huge role to play in communicating
to corporate business strategies,
the importance of IT automation
process automation would be the
and assuring staff their job security.
first step towards self-learning
Communication is very important
processes where the system would
in an organisation because
be able to monitor and self-test
it’s a good way to disseminate
itself leading to excellent business
organisational mission, visions,
processes and service delivery.
goals and objectives to the work63
NEWS FROM EAST AFRICA
Wapi Pay Raises $2.2 million to Digitise Africa-Asia trade payments. This investment reflects strong
funding milestone:
MSA Capital commented on this
support for Wapi Pay’s value-for-
“These funds will help Wapi Pay
funding milestone:
users approach. Simplest, fastest,
diversify our products range
cheapest way for African SMEs and
and drive growth so that we can
“Africa to Asia is a large trading
businesses to pay in Asia.
evolve remittances into real-time
• Funding will help Wapi Pay engage regulators for licensing across Africa, and drive higher and sustained growth, • This non-equity pre-seed raise is one of the largest for Fintech in Eastern Africa • Build value for Wapi Pay’s existing
global cross-border payments, starting with Africa and Asia. All while minimising the cost of transactions, it needs to be as easy as sending M-PESA” EchoVC commented on this
and remittances between Africa and Asia. Making international transfers faster, easier and much cheaper. The investors included EchoVC & China based global fund MSA Capital, who have invested in domestic Asian unicorns such as Meituan and NIO, and international unicorns such as Nubank and Klarna. Additional investors include Kepple Africa Ventures. Existing investors are Future Hub, Gobi Ventures and Transsion Holding. Eddie Ndichu, co-founder at Wapi Pay commented on this 64
to support its growing trade volumes. We are excited to support with our extensive China fintech network and playbook.”
Wapi Pay focuses on the Africa-Asia
that is removing friction in an Africa and powering the circular
to scale up global payments
build the necessary infrastructure
How Wapi Pay Works:
broadening its suite of products.
$2.2 Million in pre-seed funding
believe Wapi Pay is the best team to
“Wapi Pay is an exciting fintech enormous payments space for
headquartered in Kenya has raised
underserved by tech today. We
funding milestone:
and potential customers by
Wapi Pay, based in Singapore and
corridor overlooked and
trade economy. As the symbiotic relationship between Africa and Asia deepens, Wapi Pay’s ecosystem of services will become increasingly critical to bridge and drive economic value between the two continents. We look forward to working with Paul and Eddie on this next phase of growth.”
remittance corridor. China-Africa trade jumped 27% to $52.1 billion in the first quarter of this year 2021 compared with 2020, buoyed by the recovery of economies after the coronavirus pandemic. Today traders have to endure high remittances fees of up to 15% of the amount, waiting period of up to five days, and are exposed the high risk of consistent reversals due to unmatched instructions, with Wapi
NEWS FROM EAST AFRICA Pay the cost reduces to below 3% and same day payout. Sub-Saharan Africa remains the most expensive region to send money to and out, according to the World Bank, with the average cost of sending $200 being 8.02% of the principal amount compared with 4.64% for South Asia, the lowest cost globally.
MoU signed to provide an e-Commerce platform for SMEs and Cooperatives A Memorandum of Understanding
the solutions. The incentives
(MoU) was signed, in Port Louis,
and assistance provided by the
between the Small and Medium
MIDSC and the preferential tariffs
Enterprises (SMEs) Division
provided to registered SMEs/
of the Ministry of Industrial
Cooperatives would attract more
“Wapi Pay bypasses traditional
Development, SMEs and
SMEs/Cooperatives to register with
payment networks, optimising
Cooperatives (MIDSC) and the
the MIDSC while boosting their
efficiency and cost for our
Mauritius Post Ltd (MPL) so as to
businesses.
customers. Users choose the
provide an e-Commerce Platform
delivery channels they want such
for SMEs and Cooperatives
as Bank to Bank, Wallet to Wallet,
registered with the SME
Bank to Wallet and Wallet to Bank
Registration Unit.
Seamless payment platforms such as Wapi Pay can greatly ease trade and investments, according to Ndichu.
options to transfer funds as well
In his keynote address, Minister Bholah recalled that the vision of MIDSC is to foster a transformative and pioneering SME Sector crafted
The signature ceremony was held
on innovation, opportunities and
in the presence of the Minister of
inclusiveness whilst its mission is
Industrial Development, SMEs
to provide technical, professional
Wapi Pay is in China, Singapore,
and Cooperatives, Mr Soomilduth
and managerial support to
Indonesia, Japan, Thailand,
Bholah, and the Minister of
SMEs through the creation of
Philippines, Malaysia, India,
Technology, Communication
an appropriate framework for
Taiwan and Vietnam — working
and Innovation, Mr Darsanand
business development and growth.
with local banks and platforms.
Balgobin.
Wapi Pay targets to process
Through this MoU, the MPL will
economic activity, COVID-19 has
$500 million in remittances by
be able to offer efficient business
led to a surge in e-commerce and
the end of 2022, grow the number
solutions comprising e-commerce
accelerated digital transformation.
of registered suppliers and
solutions and marketing facilities
Digitalisation and innovation are
beneficiaries in Asia to 100,000;
including delivery services to
key for the survival of the SME and
and sign up at least 500,000
registered SMEs and cooperatives.
cooperative sectors, he added, and
merchants, traders and
The MIDSC will be responsible for
appealed to enterprises to rethink
businesses in Africa.
engaging with SMEs/Cooperatives
about their economic models since
to adopt and use the solutions
businesses and consumers that
offered by the MPL.
were able to ‘go digital’ during the
as make merchant payments, with settlement done within 24 hours.”
The objective is to give more visibility to the e-commerce
He recalled that amid slowing
COVID-19 pandemic have helped mitigate the economic downturn.
solutions offered by the MPL and
Minister Bholah underlined that
to the SMEs/Cooperatives using
in a bid to create an appropriate 65
NEWS FROM EAST AFRICA
the MIDSC has been upfront
RWANDA GIVES NOD TO KCB TO BUY BANK FROM ATLAS MARA
in exploring the possibility of
Rwandese authorities have
maximising returns from the
having an electronic solution,
approved the KCB Group deal to
Group’s existing businesses.”
namely an e-Commerce
buy Banque Populaire du Rwanda
Platform with secured online
(BPR) from London-listed financial
payment facilities for SMEs to
services firm Atlas Mara Limited.
framework for business development and growth of SMEs, the SMEs Division of
market their products locally,
The push for bank acquisitions has seen KCB battle with Equity Bank Group for regional domination in
Atlas Mara made regulatory
the race for boosting their asset
disclosures that it had obtained
base to over Ksh1 trillion ($9.2
For his part, Minister Balgobin
approvals to sell its banks in
billion).
dwelt on the need to create
Rwanda and Botswana.
regionally and internationally.
a conducive environment to facilitate the digital economy and to promote a transformative approach based on opportunities, inclusion and innovation. He recalled that the MPL has developed and adopted an e-Commerce and online trading and payment platform. With its recent migration to
KCB Bank and Equity Group
The firm said it was awaiting
have been top rivals, battling for
approvals from Tanzania where
superior customer base and assets
KCB Group has also set sights
to grow market share which has
on African Banking Corporation
sent them on a trip of regional
Tanzania (BancABC).
acquisitions.
KCB Group announced in November
The KCB deal came months after
it had signed a deal with Atlas
Equity Bank Group called off its
Mara to buy 62.06 per cent stake
plan to acquire four subsidiaries
in BPR and a 100 per cent stake in
from Atlas Mara Limited in a move
BancABC.
aimed at preserving its capital in the wake of the Covid-19 pandemic.
the Post Global Postal System,
“The Company has secured
the MPL is able to cater for the
regulatory approval for the
The parties had initiated talks in
operations of different models
transactions with respects to
April last year, but the negotiations
of e-commerce platforms in
its investments in Rwanda and
targeting Atlas Mara’s units in
Mauritius, he said. He also
Botswana, and parties are now in
Rwanda, Zambia, Tanzania and
announced that the MPL will
the process of concluding pre-
Mozambique dragged on until the
set up a special e-Commerce
completion conditions. Regulatory
pandemic hit.
unit.
approval is pending with respect
Furthermore, he indicated that its e-Commerce solution coupled with its network of 114 Post Offices
to the transaction with respect to its investment in Tanzania,” Atlas Mara said in the regulatory filing posted on its website.
and accompanying delivery
High rate of financial inclusion and
logistics and shipment
digital banking have forced Kenyan
facilities to 660,000 postal
lenders to look outside the Kenyan
access points across the world
local markets for growth.
will facilitate the exchange of physical goods between buyers and sellers and ensure payment electronically or otherwise. 66
Equity Bank then acquired Belgian tycoon George Forrest’s 66.53 percent stake in Banque Commerciale du Congo (BCDC)for Ksh10.4 billion ($96 million). The Kenyan lender had already bought 86 percent shareholding of ProCredit Bank between 2015 and 2017 and renamed it Equity
Mr Oigara said the transaction is
Bank Congo, then merge it with the
part of KCB’s “ongoing strategy
new acquisition to create Equity
to explore opportunities for new
Commercial Bank of Congo (Equity
growth while investing in and
BCDC) biggest foreign bank in DRC.
NEWS FROM EAST AFRICA
RWANDA: SPENN PARTNERS WITH ESPOIR TO PROMOTE COST-FREE DIGITAL PAYMENTS SPENN, a financial technology
“Each time a fan is fully registered
company with a cost-free mobile
on SPENN, when using the
banking application powered by
referral code “espoir”, Rwf500 is
I&M Bank, has signed a partnership
contributed to ESPOIR Basketball
deal with Espoir Basketball Club
club. This is also an opportunity
valued at Rwf15 million to promote
for ESPOIR Club fans to show how
digital payments.
powerful the ESPOIR brand is. It is
The one-year agreement will be implemented in the 2020/21 season with a possibility to extend the partnership in the future. SPENN has the mandate to promote financial inclusion, by connecting the banked the unbanked population in Rwanda. Participants at the signing in ceremony at Amahoro stadium. Transactions that can be performed on the platform include sending and receiving money, opening a savings account with annual interest, performing global airtime
also a big step in the direction of
Under the agreement, he noted, at least 20,000 fans for ESPOIR
club will encourage all fans to explore the benefits of SPENN.
in marketing the SPENN product. “We have platforms for our fans
SPENN.
and we hope they will be even
Pascale Mugwaneza, the vice president of Rwanda Basketball Federation, speaks during the event. “The club has leadership and fans. We hope it will have more fans,” he said.
Rwanda Plc said that the Bank
partnership with ESPOIR Basketball
experience and will play a big role
Basketball club will register in
Manager of SPENN Rwanda.
He further revealed that the
SPENN users,” he said.
said that the club has 60 years of
Digital Experience at I&M Bank
solution known as SPENN Connect.
preparations of business offers for
President of ESPOIR Basketball club
to Norbert Haguma, the Country
the SPENN e-commerce payment
solutions and we are looking into
he said.
Manager-Retail Banking and
facilitates online payments via
offerings of simplified banking
Albert Tuyishime, the Vice
in-store and many more according
payroll via SPENN Business and
SPENN will ensure continued
and support professional sports,”
Norbert Mwanangu, the General
allows businesses to perform bulk
“The Bank’s partnership with
the country’s vision to monetise
purchases, bills payments, paying
Haguma added that SPENN also
four countries across the globe.
values cashless solutions saying that SPENN amongst the best solutions not only for their customers but also anyone in the market looking for convenience. SPENN was launched in partnership with I&M Bank Rwanda Plc in 2018 and currently has more than
better organised. The one-year partnership with SPENN is the first step towards a sustainable partnership,” he said. He said that the partnership will also improve working conditions for players in competitions as the club gains more financial support thanks to the partnership. The Vice-President of Rwanda Basketball Federation, Pascale Mugwaneza commended ESPOIR Club efforts in basketball development in Rwanda especially in raising youth’s talents. She said that the partnership between the club and SPENN is one of the ways to build the financial capacities of clubs in Rwanda.
300,000 clients registered on the platform and is so far available in
67
NEWS FROM EAST AFRICA
Equity Bank Rwanda in digital payment push
that accept Equity Visa Cards whether it is online, in the store locally or abroad when they have travelled, he added. Equity Bank’s Director Commercial, Jean Claude Gaga, says that the
Equity Bank Rwanda has unveiled
Hannington Namara, the Managing
cards offer an affordable and secure
a one-year campaign that seeks to
Director of Equity Bank Rwanda,
solution to the customer and will go
promote the usage of different Visa
explained that USD-Visa Gold
a long way in providing the much-
cards to pay for goods and services.
Debit Card is the first of its kind
needed convenience and freedom.
The campaign dubbed “Ikarita ikora hose: card that works everywhere” will see customers win exciting prizes ranging from household appliances, brand
on the Rwandan market and targets to provide convenience to the bank’s customers, who are looking to make online or in-store transactions in the USD currency.
“Our promise is to continue to give Rwandans more convenience, comfort, and control of their financial needs, by saving time and costs while carrying out
new laptops, shopping and travel
He said that the card will enable
transactions especially as we
vouchers as well many other
the Bank’s customers to carry out
continue to observe safe health
exciting monthly prizes from June
transactions in USD currency for
measures against covid-19,” he
to December 2021
free.
said.
The Bank offers debit and credit
Those to use the USD card will have
Salma Ingabire, Country Director
card services and is on course to
an account linked to it.
for Visa in Rwanda said, “We are
introduce other prepaid cards.
Equity Bank Rwanda will soon issue
On Wednesday, June 18, two new
Prepaid Visa Cards to its customers
debit cards were also launched.
and they include Equity Bank Visa
These include USD-denominated Equity Bank Visa Gold Debit Card and Equity Bank Visa Infinite Card.
Infinite Card, a premium card that gives cardholders free travel insurance that covers the spouse and children plus unlimited access
delighted to partner with Equity bank on this timely campaign to enhance the adoption of digital payments as well as inspire and inform merchants and consumers on the benefits and effectiveness of using Visa cards.”
In light of the Covid-19 pandemic,
to more than 800 airport lounges
Equity Bank said all cards issued
She said that VISA operates in
all over the world.
over 200 countries worldwide and
by Equity are contactless, a feature that shortens the amount of time that a customer spends when making payments in crowded stores such as supermarkets, hotels among others.
“We are excited to launch this promotion that has been designed to create awareness about the
15,000 banks. “We have data centres with
as the different benefits that
technology that makes payment
customers get when they choose
secure,” she said.
Equity Bank Visa Cards,” Namara
campaign is that customers lose
said, “This promotion will go a step
a lot of time going to the ATM to
further and reward those who use
withdraw cash.
their cards to make payments both online and in the store.”
POS machine and make payment
The campaign will educate
without necessarily being inserted
customers about each type of card,
into it.
the different outlets or locations
68
payment network working over
different types of cards as well
The key insight behind this
The cards can also be tapped on a
has over five billion cards in the
Equity Bank Rwanda began its operations in 2011 and is registered as a commercial bank by the National Bank of Rwanda. The Bank has a foot-print of 15 branches and is supported by 2800 agents, 1224 merchants and a network of 21 ATMs.