Kenya Bankers Association (KBA), the banking industry’s umbrella body, has awarded Tieto the contract to develop Kenya’s first industrywide switching platform in a move that will see banks enhance efficiency across all digital platforms. The Tieto-developed payments software will enable KBA, via a subsidiary company called Integrated Payments Service Limited (IPSL), to develop instant payment services for the 45 KBA-member banks, becoming the first real-time interbank transaction platform in East-Africa region.
“Tieto has been a key partner in the development of the industry switch, thanks to their deep knowledge of the local market and international experience in the area of instant payments. This project is in line with the national payments system strategy which seeks to promote financial inclusion and enhance interoperability through shared technology infrastructure. This platform will enable product innovations with high scalability and risk management,” said Habil Olaka, CEO of KBA.
The first product which will be launched via the KBA Switch is an innovative, peer-to-peer (P2P) transaction service enabling money transfer instantly and round-the-clock. KBA plans to launch the real-time P2P service during the first quarter of 2017.
“We are pleased to support KBA in enabling our shared mission to bring true value to society and contribute to overall economic growth and development and deliver the instant payments platform to one of the most innovative countries and organizations in Africa, from framing the project scope, through the development process and to successful implementation. The fact that anyone in Kenya will soon be able to send money to other bank customers in seconds via multiple channels will become an example of an efficient tool for financial inclusion in the region. We congratulate KBA and its member banks for this achievement and we look forward to the launch,” says Maris Ozolins, Head of Retail Payments and Cards at Tieto.
The KBA Switch has the potential to assist the banking industry and Kenya’s financial regulators in meeting their shared objectives of promoting increased efficiency and financial inclusion. Kenya has modeled the industry switch after similar platforms including Ghana, Zimbabwe and the United Kingdom.
About the Partners
Tieto aims to capture the significant opportunities of the data-driven world and turn them into lifelong value for people, business and society. We aim to be customers’ first choice for business renewal by combining our software and services capabilities with a strong drive for co-innovation and ecosystems. For more information about Tieto Instant Payments solutions and National Switch solutions visit: https://sites.tieto.com/national-retail-payment-switch
Kenya Bankers Association (KBA) was founded on 16th July 1962. KBA has evolved and broadened its function to include advocacy on behalf of the banking industry, and championing financial sector development through strategic projects. In line with the Government’s policy on public-private partnerships, KBA and Central Bank of Kenya have implemented key projects such as modernization of the National Payments System through the Automated Clearing House, implementing the Real Time Gross Settlement System (RTGS), and the Kenya Credit Information Sharing Initiative which introduced the use of information collateral provided by credit reference bureaus to enhance credit access for borrowers.
Today, KBA is the financial sector’s leading advocacy group and banking industry umbrella body that represents total assets in excess of Ksh3.7 trillion (USD 37 billion). The KBA members are comprised of commercial banks and deposit taking microfinance banks licensed by the Central Bank of Kenya. Visit www.kba.co.ke for more information.
For more information, please contact:
Sheri Brandon, Head of Transaction Banking, Tieto, phone: +46 702974693, email@example.com
Maris Ozolins, Head of Retail Payments and Cards, Tieto, phone: +37129217209, firstname.lastname@example.org, email@example.com
Nuru Mugambi, Director of Communications, KBA, phone: +254 20 222 17 04, firstname.lastname@example.org