RBM, banks move to accelerate bank transfers
Commercial bank customers have started enjoying instant money transfers following introduction of instant electronic funds transfer through National Switch (NatSwitch) to fast-track interbank transactions.
The facility, which is funded by the World Bank’s Financial Sector Technical Assistance Project, will see all transactions initiated through commercial banks’ mobile or Internet banking platforms processed instantaneously.
In a statement co-signed by Reserve Bank of Malawi (RBM) Governor Wilson Banda and NatSwitch chairperson Zandile Shaba said the instant electronic funds transfer is meant to improve customer experience while at the same time increasing the velocity of money, which is a catalyst for economic growth and development.
Reads the statement in part: “In order to ably position the country in the envisioned digital economy and in support of the Malawi Government’s financial inclusion drive, the general public is urged to use digital payment facilities in its daily transaction needs as they are faster, safer and convenient.”
Meanwhile, Consumers Association of Malawi executive director john Kapito has described the initiative as positive, saying it will provide the much needed convenience to customers when making bank transactions.
He said: “This has come at a right time when consumers have been complaining regarding the failure by banks to provide such an efficient electronic instant bank transfer Service which was a big inconvenience to consumers as it was difficult and impossible to transact on such a platform which resulted in delays for online interbank transactions.”
Kapito said the development will also help local banks to align themselves with up to date technical advancement, observing that Malawi banking system has hung on to primitive technology platforms that do not take into account the interests of its new generation of consumers.
He said: “The reasons for the bank’s failure to provide these new technological innovations were beyond imagination and it exposed the lack of creativity and innovation within the Malawi banking sector.
“Failure by our Banks to provide this vital service in this time and age forced consumers to move from one bank to the other with huge sums of cash in order to facilitate the real-time fast bank transfer and it was worse when such transfers are done over weekends and when the consumer is outside the country and wants to pay online bills or settle an emergency.”
Information and Communications Technology Association of Malawi president Clarence Gama yesterday described the initiative as positive and crucial in enabling the adoption and utilisation of digital services.
National Bank of Malawi plc and Standard Bank plc charge K1 100 per transaction and will allow transactions from K1 000 up to K1 million.
