NAIROBI, Kenya, May 31 – The Kenya Bankers Association (KBA) has established a fully-fledged payments technology delivery service firm.
According to the commercial banks’ industry body, the move is part of a strategic effort to boost the banking sector’s interoperability and efficiency through affordable technology-based solutions.
The firm will provide a go-to-market platform via the Kenya Interbank Transaction Switch (KITS) which is geared at harnessing digital payment solutions for the local market.
Integrated Payments Service Limited (IPSL), which is a subsidiary of KBA, will provide technology-based payment solutions to the association’s member banks, at subsidised rates.
KBA Chief Executive Officer, Habil Olaka explained that IPSL would interconnect all banks in Kenya. He added that the firm would also inform policy direction and manage the risks associated with payment systems in the market, while providing technical and related guidance to KBA member banks.
“The move is also part of a strategic effort by KBA to enhance ongoing financial inclusion efforts through diversified commercial banking delivery channels, including mobile and internet-based platforms as the country gears to become a cash-lite economy in line with the global digitisation trends,” he said.
As part of its operational strategy, IPSL will soon be unveiling an interoperable, advanced person-to-person payment solution. The solution is currently on its testing phase with a complement of more than 20 member banks participating in the User Acceptance Testing trials.
IPSL Chief Information Officer Michael Mbuthia, said that the technology stack will run a new generation interoperable payment transactions switching platform.
The development of the platform, which will complement KBA’s existing, clearing house and follows the recent signing of a financing agreement between KBA and Bank of Baroda, as the project financers.
Once complete, the IPSL system will provide a safe, secure and cost efficient platform for person-to-person money transfer. These transfers will be initiated from the five main bank channels: Mobile banking (USSD & Application), Internet banking, ATM, Branch front office, Agency Banking and POS.