FNB partners with BankservAfrica for faster cross-border payments

First National Bank (FNB) Namibia has partnered with BankservAfrica to implement the Transactions Cleared on an Immediate Basis (TCIB) system.

This move aims to significantly enhance the speed and efficiency of low-value cross-border payments within the Common Monetary Area (CMA), which includes South Africa, Namibia, Lesotho, and Eswatini, the bank said in a statement.

Traditionally the majority of FNB’s cross-border payments within the Common Monetary Area were processed via EFT, but with the evolving compliance regulation the need for a more compliant system became clear. BankservAfrica’s TCIB solution was selected as the ideal replacement, ensuring compliance while enhancing the speed, convenience, and security of transactions.
 
The integration of the BankservAfrica platform now allows FNB to offer cross-border payments between FNB accounts in different CMA countries via its Global Payments platform, which is easily accessible on the FNB app and FNB Online Banking.

“The agreement, signed on 24 September and fully implemented by 18 October, marked a significant milestone for us,” said Ian Erlank, RMB Namibia’s Head of Global Markets.

“The speed and ease with which our customers can make cross-border transactions is of utmost importance. Customers can now enjoy this service without any additional fees or requirements.”

The TCIB system is BankservAfrica’s innovative cross-border payments platform that allows for near real-time clearing of transactions. It not only mirrors the simplicity of EFT payments but also introduces several added advantages, such as real-time processing, enhanced security, and 24/7 processing of payments.

“The transition to TCIB was an important step for us,” said Richard Porter, Chief Executive of Forex at FNB South Africa.

“Our clients will experience a seamless, automated process for cross-border payments that feels almost identical to the EFT process they are familiar with, but offers significant improvements, including immediate payment clearance, low costs, and high-security features.”

One of the standout benefits of the TCIB system is the speed of transactions and the lack of restrictions on time of use. Payments can now be processed in near real-time, even outside traditional banking hours, including evenings, weekends, and public holidays. This level of convenience provides a substantial advantage over the previous EFT system, which was limited to standard banking hours.

Over the upcoming months, the bank plans to introduce a system enhancement that will incorporate an automatic beneficiary account verification process, which occurs as soon as beneficiary details are entered, at no extra cost to the client. This added layer of security will ensure that all payments are sent to valid accounts, reducing the risk of fraud and errors.

“Over the years we have made sizeable investments into constantly integrating advanced technology into our platform-based business which has allowed us to transform the FX landscape and, more importantly, the cross-border payments experience of all our individual and business clients. With solutions such as TCIB being added to our array of cross-border payment solutions we have widened our offerings to ensure that we provide our clients with a variety of valuable solutions for their individual and commercial needs,” added Porter.

As the leading automated clearing house in Africa, BankservAfrica has played a pivotal role in developing the TCIB Cross-Border Payment Scheme for the Southern African Development Community (SADC) region. Launched in 2021, TCIB was designed to simplify cross-border digital P2P payments, reduce remittance costs, and support activity for the benefit of economies. Its growing network now spans several countries in the region, South Africa, Zambia, Namibia, and Zimbabwe, with further expansion plans on the horizon.

According to Tebogo Diphoko, Africa Strategic Business Development at BankservAfrica, “the adoption of TCIB by FNB aligns with the shared goals of both organisations to promote financial inclusion and increase access to financial services across Southern Africa. By enabling low-cost, immediate payments across borders, TCIB fosters greater economic participation between SADC countries for activities such as remittances or similar day-to-day transactions”.

“We are pleased to partner with FNB and take the lead in introducing this innovative solution to the market. This represents a significant milestone in TCIB’s journey towards ensuring equal access to cross-border payments and promoting inclusive payments throughout the region and the wider SADC community. We believe in the strength of meaningful collaborations to make this possible, reflected in the well-known African proverb: ‘If you want to go fast, go alone. If you want to go far, go together,” concluded Ruhling Herbst, Executive Head: African Business Development at BankservAfrica.

SOURCE: NAMIBIAN ECONOMIST