Be Future-Ready: The Case for Payments as a Service (Paas

Over the years, financial institutions have faced a myriad of changes in regulations, technology and customer expectations. Banks are now having to deal with the competing demands of maintenance and compliance on the one hand, and the need to innovate and deliver value-added services on the other. The balance of effort is increasingly consumed by the former with the share of investment in innovation and value generation being squeezed.

COVID-19 has changed customer behaviour, which will accelerate the need for more digital innovation, adding further to the demand on technology resources that are already stretched to the limit. While future investment plans may remain uncertain, banks need to consider several factors for their technology strategy, such as efficiency, where to invest and how to reduce capital expenditure.

It is apparent that the traditional approach to implementing and updating technology is no longer sustainable in the long-term.

The true cost of outdated technology

Maintaining technology has always been a challenge. What makes it more important now than ever is that innovation expectations have become far greater and exist on multiple simultaneous fronts. Today, there is more demand for product innovation, alongside the need to deliver consistently across multiple channels. On top of this, banks are facing structural changes, such as the convergence of payments.

Faced with this combination of imperatives, many banks are finding that continuing to maintain their payments technology in-house is no longer the most viable option.

Banks that persist with existing in-house infrastructures are in many cases spending large sums just to keep up, with little left for innovation. This can put them at a distinct disadvantage in today’s digital environment, where challenger banks and fintechs are fully embracing tools like the cloud to optimise operations while delivering truly transformational customer experiences.

Maintaining technology can be quite costly,and leveraging shared payment innovation can result in notable cost savings. Additionally, there are savings to be had in the areas of capital costs, opportunity costs, regulatory or payment scheme compliance costs, and the inevitable one-off costs from technology or infrastructure upgrades.

And as the options available for customers to initiate payments across card and non-card payment rails increase, this will drive a convergence of the technology that supports the processing of those payments, further increasing the demand for change.

In this environment, migrating to an alternative technology strategy, such as PaaS, can be a strategic and costeffective decision.

Why PaaS?

One solution to mitigate the risks and costs associated with maintaining technology is to outsource payments activity to a PaaS provider. The most obvious advantage here is cost reduction. However, there are many other positive and significant financial benefits that can be realised in terms of reduced capital expenses and the associated effects on balance sheet and free cash flow. This is particularly important in the current environment as capital investment comes under even more scrutiny.

Running a robust platform is a PaaS provider’s primary business, whereas for a bank it is just one of the many areas in which it has to invest. A PaaS provider is compelled to continually reinvest to ensure their technology never stands still long enough to become outdated, while also recruiting high-calibre personnel to support and advance it.

Geographical scale can also add value and increase opportunities for innovation. A PaaS provider with clients around the world sees and delivers innovation globally, which can be redeployed elsewhere rapidly and at a lower cost than custom development. Also, a global processing network can serve as a worldwide payments intelligence network, detecting trends, such as new payment types, consumer payment behaviour and cyberthreats.

One further consideration is how payments have become increasingly commoditised in recent years. As traditional revenue streams from payments have declined, it makes even less financial sense to retain payment processing in-house. By adopting PaaS and benefiting from the associated cost savings, retained payment margins can be maximised, simultaneously freeing up resources that can be diverted to innovation and value-added activities, such as enhancing customer experience and building the franchise.

Debunking the myths

Despite the compelling business case for banks to adopt PaaS, some remain reluctant to do so because of various

myths. One example is the belief that outsourcing data is inherently risky. The reality is, in fact, the opposite. PaaS providers have the scale, resources and procedures to address and invest in key priorities – for example, cybersecurity. Keeping things in-house can actually create greater data security risk if resource constraints are an issue.

Budgetary considerations aside, experience and specialist tools are also major points of difference here. A typical bank IT manager might experience two or three major transition projects in their entire career. In contrast, teams at a PaaS provider collectively will have experience successfully delivering many major transformation projects, and will have also developed a whole range of specialised implementation adapters and toolkits that are continually enhanced and expanded.

Be more agile and tactical

When technology becomes outdated it can easily go from an asset to a liability. While COVID-19 has emphasised this reality for some, truly appreciating it requires a comprehensive assessment of existing technology and its long-term impact on business. Outsourcing through PaaS has a wealth of benefits that can radically transform this situation. Financial institutions can become more agile and tactical so they can continue to innovate and provide services that customers demand while differentiating themselves from the competition. Barry Tarrant Director, Product Solutions, Fiserv

The evolving payments landscape

The global pandemic has negatively impacted economies around the world, but we’re also seeing an acceleration in e-commerce and consumer behaviours. What trends are you seeing, and what is the takeaway for Nium?

At the start of the global pandemic, no one had a clue on where things were headed. But luckily for Nium, we have a 360-degree view on how different industries are adapting because of the number of industries we serve. For instance, we saw that there was a rise in gaming, e-learning, and e-commerce while the travel industry was significantly impacted. According to Newzoo, the leading global provider of games and esports analytics, the games market will to grow to $217.9 billion by 2023, representing a strong +9.4% CAGR between 2018 and 2023. This is up from a previous forecast of $200.8 billion. The sudden shift away from the classroom in many parts of the globe also led to a rise in e-learning adoption, where schools have had to distribute gadgets to students to ensure they have access to learning materials. Schools in New York, US for example distributed around 500,000 laptops and tablets to their students in early April.

To cater to these sudden shifts in consumer behaviour, banks are coming to Nium with an accelerated timeline to leverage and implement our services, including instant real-time cross-border payments. This is positive because banks are reacting to new consumer behaviours promptly.

That said, while these are positive trends, we need to think about how we can sustain this momentum into the future. Initially when the pandemic hit, we saw a huge shift of revenues from offline to online channels. However, now that countries are gradually re-opening, we see that many consumers are preferring to go back to offline channels. The question now lies in how we keep up with these changes and continue to deliver great customer service.

The world is shifting to an API economy, how is this going to impact your customers?

Our definition of an API economy is one that deploys best-of-breed products seamlessly and efficiently – and this is a core mantra of what we believe we are powering at Nium. If you think about it, banks today are being unbundled at a rapid pace. 15 years ago, if a customer wanted a loan or a travel card, they would have had to walk into a physical bank. Today, customers can turn to a small and medium-sized enterprise (SME) lender or any prepaid travel card business.

Nium is actually leading the charge in this rapid unbundling through our banking-as-a-service (BaaS) offering. For instance, E-commerce companies no longer only provide e-commerce as a service but instead have tapped onto a new range of services within that ecosystem. Companies today can choose partners for their payment solutions – for instance, they can use X for payments, Y for card issuance, and Z for lending. The API impact that Nium makes goes beyond just a few customers; we make it easy for everyone to plug in and rapidly deploy our service.

The future of the API economy is all about how to make APIs easy to understand, and that is where Nium is driving our vision forward.

What is Nium doing to cater to the under-penetrated segment that may not have access to payments today?

Nium is providing an infrastructure platform catered for anyone – from everyday customers and businesses, to large banks, and even to fintechs – aimed at levelling the playing field through the provision of financial services to all members of the population. In other words, our platform enables our partners to reach out to the population and provide greater access to payments than ever before.

To take a recent example, Nium partnered with Aptiv8, an IT and manpower solution provider, to launch a remittance service called MyRemit. This service allows migrant workers in Singapore to conduct digital remittance transactions via a mobile app, anywhere and anytime. This has been particularly vital during this year’s strict social distancing and lockdown measures, as migrant workers can still remit money back home for their family’s needs through a digital channel.

Similarly, Nium recently partnered with Cebuana Lhuillier, the Philippines’ largest microfinancial services provider, to launch their mobile remittance app, Quikz, in Singapore. Powered by Nium’s Remittance-as-a-service (RaaS) solution, this app allows thousands of Filipinos based in Singapore to send money to their loved ones back in the Philippines. Our platform ensures the transactions are processed securely and in real-time – providing more customers with a safe and more affordable way to make transactions.

What was 2020 like for Nium and what is it going to be like in 2021?

This year has been interesting for Nium because the pandemic forced us to rethink and review our company playbook for success. At the peak of COVID-19, I gathered my leadership team together to reflect on the impact the world had faced, how the world is going to change, and what we, as a company, need to consider when adapting to these changes. This exercise was extremely useful and it has formed the basis of a refreshed playbook for us.

Our team members came up with many different stories on how we need to overcommunicate not only to our clients, but also internally with our colleagues. We also spoke about product prioritisation. For instance, travel used to be an industry that most of our products served, but it has become much smaller today, while other industries such as e-learning and gaming have burst through the scenes. So, do we still create products for the travel industry knowing that it will come back in the next two years, or do we focus on the growing industries right now? The good thing is, because we work with clients across a large spectrum of industries, we have been able to observe these changes panning out early and react swiftly.

Come 2021 and 2022, product will be key for us. There is a lot of pent-up demand across industries that were restricted due to the pandemic, such as travel, and we are looking forward to capturing this new demand, which I believe will definitely come back once we tide over these difficult times. At Nium, we will continue to focus on growing our revenue and expanding our team worldwide.

At the same time, we are also aware of the impact that the pandemic has had on our employees this year. I want to take a brief moment here to acknowledge the efforts of our employees worldwide. They have rallied hard over the past few months, putting in the extra hours as they work remotely, to ensure they deliver quality work. Ensuring that our employees remain engaged and prioritising their mental health will also be a focus for us in the new year. Prajit Nanu Co-Founder and CEO Nium

Nium is a global financial technology platform redefining the way consumers and businesses send, spend and receive funds across borders. The company is continuously innovating to provide the most relevant and agile solutions to meet the needs of consumers and businesses, having evolved from solely focusing on consumer remittance via InstaReM, to also providing fintech solutions for businesses. Nium is regulated in Australia, Canada, European Union, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, United Kingdom and the United States of America, and processes billions of dollars a year for banks and payments institutions, the next generation of e-commerce players, OTAs and retail users across the world. Nium’s investors include Visa, BRI Ventures, Vertex Ventures, Vertex Growth, Fullerton Financial Holdings, GSR Ventures, Rocket Internet, Global Founders Capital, SBI Japan, FMO (Netherlands Development Finance Company), MDI Ventures, Beacon Venture Capital and Atinum Investment.

For more information, visit: http://www.nium.com.

EMEA

Supporting Growth in Africa

Despite the internationally recognized importance of SMEs, African small businesses often have difficulties accessing financing for growth and innovation from the formal financial sector. SME financing is often considered by many financial sector players in Africa to be a risky activity as promoters quite more often than not, fail to come up with the collateral levels required to secure bank facilities. Enterprises (SMEs) are widely recognized as big drivers of economic growth, innovation, regional development and job creation. A strong and vibrant SME sector provides a strong foundation to increase standards of living and to reduce poverty. African Guarantee Fund is a non-bank financial institution whose objective is to promote economic development, increase employment and reduce poverty in Africa by providing financial institutions with guarantee products and capacity development assistance specifically intended to support SMEs in Africa. Jules Ngankam is Group Chief Executive Officer of African Guarantee Fund (AGF), and recently he spoke to Global Banking & Finance Review about today’s business challenges in Sub Saharan Africa, and the financial implications combatting the Coronavirus pandemic. Jules has over 15 years of experience in banking and financial services with leading financial institutions. He joined African Guarantee Fund in 2013 as the Chief Financial Officer after which he served as Deputy CEO from April 2017 and was thereafter appointed Group Chief Executive Officer in September 2020. investment needed for development for this class

1 - What conditions led to the creation of African Guarantee Fund?

The Small and Medium Enterprise (SME) sector contributes significantly to developing African economies, but it still has a huge unexploited capacity for growth. SMEs make up approximately 80% of Africa’s private sector firms, with 50% being smallscale and 30% being medium-sized. SMEs contribute over 50% of new jobs in Sub-Saharan Africa however, SME financing in Africa.

only approximately 20% to the GDP. This is compared to 40-60% of GDP in the EU and the US and even higher rates in growing Asian economies.

of growth, among other barriers, access to finance remains the strongest obstacle. According to analysts the SME financing gap in the continent is estimated at USD 300 billion. The acknowledged reticence of the banking system in financing SMEs, especially as regards to the of businesses, is mainly explained by: • • Low Banks’ long-term deposits; The inability of the SMEs to provide acceptable guarantees and collateral; Inadequate equity for SMEs; SMEs’ poor quality of management.

The African Guarantee Fund for Small and Mediumsized Enterprises (AGF) was established in 2012 to address the mismatch in the supply and demand of For the SME to really play their role of the engine

The aim of AGF is to reduce the risks assumed by the financial sector by sharing these risks through the provision of financial guarantees that mitigate the inability of SMEs to provide acceptable collateral.

AGF also offers capacity development to financial institutions to improve SMEs’ financial product offerings, by helping banks to better address working capital and long-term financing needs of SMEs; and increasing Banks’ capacity to appraise SMEs by providing technical assistance and strategy to further develop their business.

AGF is a truly public-private partnership involving donors, development institutions, financial institutions and private investors joining forces to support African SMEs.

2 - Can you tell us about the guarantees AGF offer to address the range of financing needs?

AGF offers four main types of guarantee products: Loan Individual Guarantees Loan Portfolio Guarantees Bank Fund Raising Guarantees Equity Guarantees

The Loan Individual Guarantee guarantees a single loan made by a bank to a single Borrower whose identity is known.

The Loan Portfolio Guarantee guarantees a portfolio of loans made by a bank to a borrower segment for which the qualifying criteria have been defined but the individual borrowers are not known at the time of the guarantee agreement. The guaranteed party is not required to get approval of AGF prior the placement of each loan under the guarantee.

The Bank Fund Raising Guarantee guarantees bonds issued by a bank to investors for the purpose of raising long-term resources to finance SMEs.

The Equity Guarantee is issued to cover equity investments in SMEs.

3 - What is the scope to use guarantees?

The most important criteria of AGF’s guarantee is that the end beneficiary has to be an SME.

4 - How does African Guarantee Fund enable banks in Africa to execute their SME strategy?

In Africa, the main source of financing for SMEs is the banking sector. Despite Banks’ increasing interest to provide services to SMEs, they face multiple challenges mainly due to issues of assessing and managing risks. Furthermore, the resources of banks and financial institutions are mostly short-term, and it is therefore difficult for the banking system to easily use their current excess of liquidity to finance the needs of SMEs. Finally, the inability of SMEs to provide acceptable collateral to reduce the lending risks associated to them, the inadequacy of their capital structure and sometimes the poor quality of their management increase the reluctance of the banks to fully support their activities.

AGF products assist financial institutions to scale up their SME lending activities in situation where SMEs are unable to meet collateral requirements; Improves the solvency (regulatory capital) ratios of banks and thus enables them to have a better leverage on their capital; Addresses regulatory requirements of banks' limited use of short-term resources to finance medium and long-term SME needs; Allows banks to mobilize medium and long-term resources at very competitive price.

5 - How is the AGF opening up financial opportunities and supporting the growth of SME customers?

The challenges SMEs face in Africa are within five key areas: Access to finance Infrastructure Access to markets Human resources Legal environment and corruption

Amongst these challenges, the biggest one is that of accessing finance.

The SME financing gap is brought about by the following gaps:

Information gap: SMEs lack historical data to enable them to adequately assess their risks due to the fact that most of them do not practice proper book-keeping.

Tenor gap: Banks have short-term resources while the SMEs need more of long-term resources to grow.

Collateral gap: Banks have tough collateral requirements.

Product gap: Bank products are sometimes not adapted to SMEs’ business cycles.

Skills gap: SMEs are unable to attract or afford required talent.

Perception gap: This is the gap between the perceived risk and the real risk.

AGF’s guarantee products and capacity development assistance are designed to tackle the financing challenge by being the missing link between the lending institutions and the SMEs.

6 - What improvements have you brought about in the SME sector since you began operations?

Since AGF began operations, the company has delivered in:

Improving lives in Africa

AGF has supported more than 25,000 SMEs. SMEs that benefited from AGF guarantees have generated an additional revenue of USD 4 Billion. Approximately 50% of supported SMEs are located in rural areas. 20 Million people were able to access clean energy thanks to SMEs supported by AGF guarantees.

Fostering Jobs Creation • 130,000 Additional jobs created

Fighting Climate Change • Cutting 3.8 million tons of CO2 equivalent Greenhouse Gas (GHG) • 57,005 KW Cleaner generation capacity installed • 101 Partner Financial Institutions and 291 SMEs Trained

Promoting Gender Equality • USD 522 million Loans granted to 6,000+ women-led SMEs • 328 women-led SMEs Trained

Contributing to Africa’s Competitiveness • USD 780 million loans granted to 3,400+

SMEs in the Energy, Infrastructure and

Manufacturing Sectors

Contributing towards Food Security • USD 188 million loans granted to 2,100+

SMEs in the Agriculture Sector.

Partnering for Poverty Reduction • USD 2.5 billion private capital made available in 40 Countries

7 - What are your plans to increase financing to agricultural and renewable energy SMEs in Africa?

In 2015, AGF with support from the Nordic Development Fund, launched the Green Guarantee Facility (GGF) to ease access to finance for SMEs to invest in climate and green growth-oriented economy.

The Green Guarantee Facility brings direct benefits in terms of climate change mitigation and adaptation as well as sustainable employment, poverty reduction, and gender- inclusive financing opportunities.

From the banking sector point of view, green finance is a new sector, of which SME lenders are not very familiar. Besides, SMEs are also not well versed with knowledge and skills to design and manage climate-friendly projects, let alone access to green funding. There exists significant knowledge and capacity gaps in green finance, which the GGF technical assistance addresses.

To-date, AGF in partnership with the Nordic Development Fund and the International Trade Centre has hosted five Green Finance Conferences and subsequent trainings in Zambia, Kenya, Ghana, Cote d’Ivoire and Senegal.

8 - In November, Fitch Rating confirmed the African Guarantee Fund for Small and Mediumsized Enterprises Ltd's (AGF) Insurer Financial Strength (IFS) Rating at 'AA-' (Very Strong), what does this rating mean for the company?

The biggest asset of a guarantee fund is its credibility. The main criteria defining AGF’s credibility is its rating. The rating brings a very strong comfort to our partner financial institutions when assessing AGF’s capacity to assist them in improving their profitability, liquidity and solvency in order to meet the expectations of their shareholders and the requirements of the regulators.

AGF’s rating brings huge benefits to our partner financial institutions:

It provides a higher capital relief to banks as it reduces the required amount of loan provisions.

Allows banks to raise capital at a better cost;

Increases the asset quality of banks’ loan portfolio.

Improves the banks’ Risk Weighted Assets (RWA)

9 - Has AGF had to adapt operations as a result of COVID-19? What are some ways AGF is responding and assisting businesses and individuals during this critical time?

COVID-19 pandemic continues to affect African SMEs and has deteriorated their creditworthiness.

As a consequence, the reluctance of financial institutions to finance SMEs has increased.

It is crucial to provide external stimulus to financial institutions so that they can continue to support SMEs in this unprecedented crisis.

AGF launched a COVID-19 product that aims to:

Reduce the uncertainties faced by financial institutions in Africa as a result of the global coronavirus pandemic. Provide more comfort to financial institutions to restructure facilities that become nonperforming because of COVID-19.

Provide commercial stimulus to the financial sector with the objective of mitigating the deterioration of SMEs’ perceived risk. Provide technical assistance to financial institutions to enhance their risk assessment approaches to better analyze the impact of the pandemic and reduce the SMEs’ risk perception gap

10 - In your opinion, what role should financial institutions take to support the social economic development in Africa?

Financial institutions need to increase their support to SMEs by increasing SME lending and designing products that are better adapted to SMEs’ needs.

11 - Are you launching any new products and where do you see AGF in 5 years?

We are constantly improving our product offering to better serve SMEs and achieve the Sustainable Development Goals (SDGs). Our new products mostly follow a thematic approach to close financing gaps in climate finance, women finance, agribusiness, etc.

In 5 years, we see AGF covering all countries in Africa, dealing with most of African banks and managing a guarantee portfolio of USD 5 billion.

Jules Ngankam Group Chief Executive Officer African Guarantee Fund

Putting Customers First

For over 126 years, First Bank of Nigeria Limited (FirstBank) has been delivering comprehensive and innovative financial services. With over 750 business locations and over 86,000 Banking Agents spread across 99.7% of the 774 Local Government Areas in Nigeria, FirstBank has built lasting relationships with customers by focusing on the fundamentals of good corporate governance, strong liquidity, optimised risk management and leadership. Wanda Rich, Editor, Global Banking & Finance Review spoke to Dr. Adesola Adeduntan, CEO, FirstBank to find out about the banks current activities and to discuss the current state of banking in Nigeria.

Wanda Rich: What is the current state of banking in Nigeria?

Dr. Adesola Adeduntan: Banking in Nigeria has progressed substantially in the last few years if you consider where we started from. For example, if you consider service, in the not so distant past, we were in a place where bank customers could only enjoy banking services if they had an account at their local branch. Today, customers’ funds can be moved between banks instantly, in the comfort of their homes or offices. Nigerian banks are rapidly embracing digital innovations. We are now also better capitalized and have consistently demonstrated our capacity to export banking services to other countries. Interestingly, no bank represents this successful evolution better than FirstBank which has been established for over 126 years. Our position as the foremost financial services provider in the region was achieved on the back of continuous reinvention and innovation. At FirstBank, over 85% of our customer transactions are conducted on affiliated platforms.

Wanda Rich: FirstBank is at the forefront of promoting electronic banking solutions in Nigeria. You recently launched the first of its kind in Africa, FastTrack - Next Generation ATM. Can you tell us about the FastTrack ATM and the advantages it offers customers?

Dr. Adesola Adeduntan: The FastTrack - Next Generation ATM, also known as the Touchless ATM, is a solution that allows a customer to transact at an ATM by simply tapping a contactless NFC (Near Field Communication) card on the ATM. The transaction would have been initially set up by the customer on his mobile phone. The innovation is targeted at making our customers’ transactions faster and more efficient at our ATM sites. It is also one of our responses to the COVID-19 pandemic ensuring efficient and safe customer service. It is widely acknowledged that, the virus can be better contained by adopting a minimum touch interaction approach. The contactless solution thus ensures customer safety and an improved confidence in the use of the ATM while drastically reducing the time spent at an ATM. The risk of spreading the COVID-19 virus is reduced as well as providing a new and exciting user experience for our customers.

Wanda Rich: Talking about COVID-19, how is FirstBank responding to the current pandemic?

Dr. Adesola Adeduntan: We are one of the very few organisations that have experienced previous pandemics, as well experience in two world wars and, a civil war over previous centuries. You may have seen our strap line “woven into the fabric of the society”. This is not just a cliché. Our services help shape the society through challenging times. We had already made deliberate and sizable investments in technological infrastructure, as well as products and services that made it possible for us to adequately respond to the challenge posed by the current pandemic.

Our services to our customers remain stable and unbroken during the current period. Even when bank branches could not open to at the height of the pandemic, our customers were able to transact seamlessly at our over 86,000 agent banking locations, with over 3,000 ATM terminals at the various digital touchpoints. Today, the number of FirstBank’s agent banking locations has grown to over 86,000 within 772 local government areas in Nigeria. At those locations, customers open accounts, register for their Bank Verification Numbers, withdraw and deposit cash, transfer funds, recharge airtime, and pay bills. The channel has processed over 9.3 Trillion Naira transactions since its launch in 2018.

In line with our core commitment to putting our customers first, while equally ensuring responsible lending, we provided significant concessions on interest rates across different loan types, in addition to repayment moratoriums and facility extension to support some key market segments, like schools and traders, making repayment flexible and realistic.

One of the most neglected demographics in this current period are children and young people. We were aware of this, and deployed e-learning platforms to ensure students across the nation are not disconnected from learning opportunities like many of their counterparts in other parts of the world. For example, we sponsored the distribution of 20,000 customised e-learning tablets in partnership with the Lagos State Government in Nigeria.

We are also an important member of the coalition of private sector organisations, that have continued to generously donate isolation facilities, drugs and relief materials to people across the country during these trying times. We remain committed to the success of our customers going forward during this period.

Wanda Rich: Has the crisis of COVID-19 accelerated the implementation of banks’ digital strategies?

Dr. Adesola Adeduntan: We are aware that there is a positive impact of the pandemic, by moving many of our activities to digital channels. FirstBank’s journey towards digitalization has recently been more aggressive, which was why we were able to seamlessly respond to the sudden social changes. The pandemic has encouraged us to further validate the effectiveness of our digital strategies. During these times, in addition to the branches and the agent Dr. Adesola Adeduntan CEO First Bank of Nigeria Limited (FirstBank)

locations, we have continued to open new customer accounts via our digital touchpoints such as the mobile app, USSD, as well the assisted Digital Sales app. We are currently responsible for over 20% of the industry’s interbank transactions nationwide, and this is a testimony to the volumes we generate through our digital channels. Our system processes over 30% of card transactions in Nigeria.

Our digital loan platform provides simple loans to salary earners within seconds of them making requests on their mobile phones. Like our many other transaction types, they do not need to physically visit one of our locations. The outlook for us is to build a technology company remotely delivering a full range of banking services, and we remain focused to deliver this in the future.

Wanda Rich: How is the bank opening up financial opportunities and supporting the growth of SME customers at this time?

Dr. Adesola Adeduntan: Our Bank is passionate about Small and Medium Enterprises because of their potential to impact the economy. We have value-added solutions with which we have created a functional ecosystem for SMEs to thrive. The ecosystem includes propositions, such as connection of the SMEs to talent and resources, cutting edge tools, access to business finance and market capacity building opportunities and policy advocacy. These are all aggregated on our SMEConnect platform, as value adding products and services for easy access and at competitive rates that are mostly discounted. The SMEConnect is a digital platform that enables the SMEs to connect to our services from the comfort of their locations anywhere in the world. This has been well received by the SME community as we engage across the country. During this period, we have remained very close to our business owners, to provide much-needed support to navigate the challenges. We hold regular free webinars to help equip them with the needed skills to effectively leverage digital platforms in this new environment. As earlier mentioned, we gave concessions on loans, which were mostly appreciated by SMEs.

Wanda Rich: Financial Inclusion has always been a focus for FirstBank. You have the KidsFirst and MeFirst products for the younger generation. Can you tell us about these unique accounts, why they were created, and how they help drive financial inclusion?

Dr. Adesola Adeduntan: You are right. We see financial inclusion as a means of achieving sustainable social impact. I mentioned how we are building a distribution channel that has been adjudged the most successful bank-led agent banking scheme in the world.

We are a youth-friendly bank with compelling propositions for that demographic. About 35% of our customer base is young people. KidsFirst and MeFirst were created to encourage the right savings culture among children from 0 – 17 years. The offerings have relevant enhancements, including appropriate parental guidance and financial discipline for children as they grow into adulthood. Both accounts can be opened with zero balance and operated with a minimum balance of 100 Naira.

KidsFirst Account is designed for children between the ages of 0 and 12 years to sensitise them on how exciting savings can be. The account comes with an appealing gift item for the child when the account is opened, and it is automatically transited to MeFirst account when the child is 13 years old. MeFirst account, on the other hand, is designed for teenagers between the ages of 13 and 17. It was created in recognition of the need to help teenagers embrace the culture of financial responsibility and cashless payment as they develop into young adults. They have access to attractive and fashionable pre-paid cards through which parents/guardians can credit weekly/monthly allowance and monetary gifts. With controlled spend limits, the teenagers are introduced to the concept of ecommerce with the use of the card for small online orders like games, music and physical POS payments as well.

The good thing is that these accounts come with the benefit of access to Financial Literacy Workshops and Youth Empowerment Series, which are some of the outstanding investments we have made at FirstBank, to prepare Nigerian youths to become enterprise-minded.

Wanda Rich: What does the partnership between FirstBank and Lagos State Employment Trust Fund (LSETF) and The Lagos State Health Management Agency (LASHMA) mean for customers?

Dr. Adesola Adeduntan: The partnership with LSETF means that low-cost private schools in Lagos State can access funding at a single-digit interest rate of 9%. We target support for over 2,000 schools in the first tranche. This will enable schools, who were badly affected by the pandemic to bounce back in better times. We are glad to support the Lagos State Government in improving the post-COVID-19 economic recovery for those involved in the education sector, which in turn boosts learning and creates more jobs. We are going a stage further, working with the health sector partners, like LASHMA, as well as offering highly competitive concessionary interest rates to key players like the Pharmacy associations nationwide, supporting the national and even global efforts to flatten the curve.

Wanda Rich: As the COVID-19 pandemic and its effects persist, what is FirstBank’s approach to sustainable impact in the society?

Dr. Adesola Adeduntan: Regardless of the impact of COVID-19, as a responsible corporate organisation we remain committed to supporting all our stakeholders in the most sustainable manner possible. Our Bank has been woven into the fabric of society for over 126 years, overcoming challenges, and remaining a dominant player, partnering and supporting various sustainable activities towards the continued growth of our host communities and the nation at large.

Whilst different organisations rose to the various challenges resulting from the COVID-19 crisis, and were supportive in areas such as health and welfare, FirstBank chose and developed the e-learning initiative. FirstBank felt strongly that the specific needs of children and youth risked being neglected at a time of unprecedented crises – with schools being closed, parents losing jobs, businesses shutting down, government revenues shrinking, health care resources being over-stretched, economic conditions worsening, amongst many other challenges. The bank therefore kick-started an initiative to move one million students to e-learning, alongside its partners. This was to minimise the disruption to their education resulting from the prolonged closure of schools across Nigeria, and ensure that they remain fully engaged during this difficult period, so they can continue to learn and compete favourably with their peers across the world. Over 140,000 students have benefitted from this e-learning initiative. Focusing on key elements that resonated with its brand, such as dynamism, innovation and nation building, FirstBank’s e-learning initiative is an innovative and dynamic approach to learning which is not only a suitable and resourceful solution at this time, but also one that is intertwined with perhaps the next century’s digital approach to education, especially with the addition of courses such as coding and robotics, which can usher students into the era of the so-called Fourth Industrial Revolution, and prepare them for the jobs of the future. The e-learning initiative also aligns with FirstBank’s key focus area within its Corporate Responsibility and Sustainability framework – education. Education remains the single largest beneficiary of FirstBank’s enormous investments in CR&S. Currently, 10 universities and three secondary schools enjoy FirstBank’s infrastructure projects; 10 universities are endowed with professorial chairs by the bank; and over 80,000 students in over 80 secondary schools in Nigeria have benefitted from financial literacy, and entrepreneurial and career counselling, provided through FirstBank-sponsored programmes. Education consistently attracts the bank’s keenest attention from year to year. This is because FirstBank believes that education – high quality and relevant education – remains the bedrock of any society. When children are properly educated, the nation’s future is enhanced, and the citizens of the future will provide ground-breaking solutions for the continent and the world at large. FirstBank’s partnership with IBM as part of the e-learning initiative, is making available to students the Digital-Nation Africa (DNA) programme, an online youth-focused learning programme that enables innovation and skills development on emerging technologies. IBM Digital-Nation Africa aims to provide African youth with effective digital literacy. The Platform seeks to enable African citizens, entrepreneurs and communities with the knowledge, tools and skills to innovate, design, develop and launch their own digital skills. It also helps African citizens enhance their digital skills to best meet the needs of the job market.

DNA provides a broad range of courses for various levels of digital literacy, from introducing the key emerging technologies beneficial for all, through an integrated innovator section, to a focused skills enablement section where users can understand the skills and demands of the market and gain proven knowledge to enhance their job prospects. In addition, it provides free access to practical exercises, and allows new ideas to be brought to life through focus areas such as Artificial Intelligence, Coding, Cloud, Internet Items, Blockchain, Data Science and Analytics, and Cyber Security. There are currently nearly 14,000 registrants on the programme, which is promoting opportunities to learn the skills of the future.

The partnership with Curious Learning is designed to reach smartphone users using available tested literacy and numeracy apps – with free access. Curious Learning is delivering academic-based content for students aged three to eight through a number of mobile applications designed to empower these young children in a fun, self-guided learning process through exploration and curiosity, to help them with their cognitive skills at a fundamental level. Examples of these apps are Feed the Monster and Read with Akili. Efforts are in place through Curious Learning to ensure the e-learning initiative swiftly moves across the country to school children and individuals with the need to promote the pursuit of knowledge, irrespective of age. This is critical in identifying with the roles of children at securing the future of any country.

Another partnership in FirstBank’s e-learning initiative is with Lagos State Government and Robert & John, an Edu-tech company

that owns Roducate. The Roducate e-learning platform, structured in line with the government’s accredited curriculum for primary, secondary and tertiary schools across various fields of academic endeavours, such as science, commercial and arts, includes tutorial videos to reinforce the learning engagement, as well as assignments and mock exams to test students’ knowledge and progress in the course of studying. Learning on the platform also enables note-taking for quick reference, and to foster extra-curricular activities, provides exciting features to make learning exciting and fun, such as podcasts and various games like brain pulse, monster munch etc. which allows students to play with one another online, thereby building relationships and promoting interactive learning.

So far FirstBank has provided 20,000 low-end devices preloaded with Roducate offline (presented to Lagos State Government for distribution to students) in addition to free sign-ups on the Roducate e-learning platform, with the ultimate goal being to empower at least one million students. Also, FirstBank is a member of the Global Education Coalition led by UNESCO which is a platform for collaboration and exchange to protect the right of education during this unprecedented disruption and beyond.

Furthermore, in a bid to support SMEs operating in the education sector, FirstBank created a matching fund scheme of ₦5 billion (5 billion Naira) LSETF-FirstEdu Loan, in partnership with the Lagos State Employment Trust Fund (LSETF). The scheme is designed to cushion the impact of the COVID-19 pandemic on low-cost private schools by providing loans to them at an attractive interest rate. The partnership with Lagos State Government is for continuous development of the education services in Lagos State and the nation as a whole. The commitment by the Lagos State Government with this partnership – will mitigate the challenges caused by the lockdown on the education sector following the COVID-19 pandemic. As a responsible corporate organisation committed to supporting all its stakeholders in the most sustainable manner possible, FirstBank has partnered various State Governments through the private sector-led Coalition Against COVID-19 (CACOVID) intervention with a view to promoting the readiness and efficiency of health care professionals and other compatriots at the forefront of fighting the pandemic. FirstBank donated ₦1 billion towards the joint effort of the Nigerian private sector-driven CACOVID (Coalition Against COVID-19) under the leadership of the Governor, Central Bank of Nigeria, Mr. Godwin Emefiele. CACOVID is providing the bulk of emergency health infrastructural interventions across Nigeria.

We enhanced palliative measures to help customers through these times. We introduced special waivers on repayment fees on our credit cards and a 90-day loan moratorium on our FirstEdu and First Trader solutions, to help cushion the impact of the toll on employment and livelihoods. We will persist in providing innovative and user-defined solutions to support our customers and communities sustainably.

Award-winning CIO shares insight on personal and company success

Nedbank Group, one of South Africa’s largest banks, celebrates five technology-related awards from Global Banking and Finance 2020. With a company vision of becoming the most admired financial services provider in Africa by staff, clients, and shareholders, it's clear that Nedbank Group is well on their way. In this interview, CIO Fred Swanepoel, who was recognised as CIO of the Year South Africa, shares his journey to becoming an awardwinning Information Officer as well as his personal methods, tips, and advice for those interested in IT management.

Briefly share with us your journey to becoming CIO of Nedbank Limited.

My career began at the Small Business Development Corporation, from where I later joined Nedbank in 1996. In 2004, I became the divisional director of Group Technology and Support Services. I subsequently gained experience at the highest levels of Nedbank’s technology cluster, holding divisional director positions of Finance, Risk and Compliance; Projects and Programme Management; and Group Software Services.

In November 2008, I was appointed as Group CIO and a Nedbank Group Exco member.

What’s your top tip for staying ahead in your field?

I have a passion for mentoring and sponsoring highpotential talent, accordingly, if I may, I’d like to list three:

• Never stop learning. I believe education and continuous learning to be the bedrock of success. I am privileged to have had the opportunity to study a B. Com Honours at the University of Stellenbosch, an MBA at the University of the Witwatersrand as well as a SEPSA and AMP from Harvard Business School. But learning extends beyond formal education and training. In the prevailing fast-changing and hypercompetitive environment, leaders have had to commit to ongoing agility and learning as we pivot our strategies in response to systemic developments. In short, to remain ahead of the game, you need to keep on educating yourself.

• There is no substitute for hard work. True passion for technology and innovation is a vital ingredient for a successful tenure in the fast-moving, highly competitive financial services technology ecosystem.

• Developing a strong network to leverage at critical 'moments of truth' is important. Like any asset, this network requires nurturing and investment. Having sponsors who genuinely care about your wellbeing and success has, over time, proven to be invaluable to my career trajectory.

What are the most important functions of a CIO?

Performing a conduit role between business and IT is, in my opinion, a critical component of my role to enable coordination and synchronicity of enterprise execution efforts. Brokering of ‘tradeoffs’ has increasingly become an important part of my role as we seek to navigate the prevailing volatile and uncertain competitive economy by maximising the benefits from our substantial IT investments across the various components of our business. Advancing our digital aspirations has, over the preceding years, been top of my radar, given the various benefits emanating from digitisation (revenue uplift, cost-saving, client experience uplift etc). Having ‘the correct people in the correct seats on the bus’ is incredibly important and people remain the biggest component of an effective IT value chain. Only by having the right people will any IT initiative be successful. We have experienced this firsthand

with our big transformational programme, Managed Evolution, and witnessed the positive impact that having the right people leading our efforts has on execution effectiveness and operational efficiency.

What’s the most important part of your job and what advice would you give to young people interested in a career in IT management?

‘We have become educators.’ There is a digital revolution taking place. I believe that our role is to consistently educate business partners and key stakeholders about how tech can support, enable, and transform traditional operations in support of sustainable business outperformance. I have a critical role to play in brokering collaboration between the IT and business fraternities in support of accelerated execution, the adoption of digital, system rationalisation, the onboarding and leveraging of new technology deployments, etc.

For young people with a keen interest in IT I would advise the following: • You get out of life what you put into it: passion, pride, commitment, and heart. These cannot be taught but they are without a doubt differentiators. Doggedly pursue what you aspire towards – you are the architect of your own future. • Be genuine: far too often, I see people living separate personal versus professional lives. It is my considered opinion that being genuine is what will endear you to key stakeholders in this day and age. • Learn to become ambidextrous: survival in today’s fast-moving, highly competitive, global technology ecosystem, requires one to be able to manage high levels of complexity, various interdependencies, and various moving parts on a daily basis. • Pick your team well! Having a team composed of determined, self-motivated and multi-skilled players to support you in particularly difficult times, is critical.

Can you surface a recent highlight of your career?

In 2020, Nedbank has been recognised by Global Banking and Finance by winning 5 significant industry-leading technology-related awards, namely:

• Best Banking Technology Implementation South Africa

• Most Innovative Digital Branch Design South Africa

• Most Innovative Retail Banking App (Nedbank Money App) South Africa

Best Retail Bank South Africa

• CIO of the Year South Africa I am humbled to have been recognised as the CIO of the year in South Africa for 2020. The performance and commitment of my diverse IT leadership team, the support from our CEO Mike Brown, the Board, my Group Exco colleagues, and our staff are the drivers behind us winning these awards.

What are the biggest trends impacting your field in the decade ahead?

• Client experience focus – delivering leading client experiences, at an innovation cadence that exceeds that of our peer group on a relative basis is, in my opinion, what will separate the winners from the losers going forward.

• Remote working – the enablement of staff to work effectively remotely is critical to support core business operations and the ongoing profitability of the enterprise.

• Cybersecurity remains one of the most important trends, in an increasingly digitised ecosystem, as we have a responsibility to our clients to protect them from sophisticated cyberrelated attacks, which continue to persist and grow in volume.

• The pervasiveness of digital / Internet of Things (IoT) – with more and more automation, connected devices will dominate the industry and enable enterprises to cross barriers they have previously not been able to. Nedbank has welldefined plans in place to leverage our vast API network in support of improved client experience and feature functionality offered to our clients.

How would you describe your communication skills and how do you cope with stress?

I’d best describe my communication skills as ‘radically candid and people-centred.’ In the prevailing and tough Global environment, we, as leaders, have had to communicate with care and empathy whilst still being radically candid in the content of our communication. Balancing the sincere care we have for our people and delivering the cold hard facts is something my leadership team and I have not shied-away-from. We have deliberately focused our communication across digital platforms without losing the human touch.

This caring and radical candid communication approach gives rise to a workforce that grows together in and out of these tough times.

Developing skills to manage stress is an important tool in everyone’s armoury.

How do I personally cope with stress?

• I fly. I’m an avid pilot and love the alone time in the air to reflect on past, current, and future challenges.

• I leverage a core group of family and close friends to support me in times of need.

• I prepare. The more stressed I am, the harder I work and, in my experience, the luckier I get.

Who do you most admire in business or who has been your biggest influence, and how have they affected you?

• Elon Musk - It is inspiring to see how he has transformed a vision into a revolutionary reality by combining technology and business.

• Mike Brown – Mike’s attitude, aptitude, and energy are, quite simply, extraordinary. His application and consistency over a 10+ year tenure is impressive. His ability to consistently display high levels of IQ and EQ is rare and is what sets him apart from his peers.

What 3 books would you recommend people read?

• The Platform Revolution by Geoffrey G, Parker and Marshall W, Van Alstyne

• Goliath’s Revenge: How Established Companies Turn the Tables on Digital Disruptors by Scott Snyder and Todd Hewlin

• Good to Great: Why Some Companies Make the Leap and Others Don't by Jim Collins

What do you look for when you’re building a team?

‘Strategy precedes structure.’ Having the right strategy to build a team around is the first step. Nedbank’s IT strategy is anchored around 3 pillars: Digitise, Delight, and Disrupt. Each pillar has specific strategic technology focus areas. The right team is an outcome of the strategy. At Nedbank, we have come to realise that our secret to success is the use of technology as an enabler whilst harnessing the power of our people. With these two ingredients, Technology + Our People, we create agile teams that deliver delightful client experiences whilst driving our strategic mandate to Digitise, Delight, and Disrupt the financial services industr

Fred Swanepoel Chief Information Officer (CIO) NedBank

LOOKING AHEAD: UK BANKING’S TRAJECTORY

Matthew Phillips, Vice President, Head of Financial Services UK & Ireland, Diebold Nixdorf, explores three of the key themes having impact and driving change for UK banks.

The UK’s banking industry has always been evolutionary and revolutionary. It’s a sector that every consumer relies on and that influences our daily lives. 2020 was a year of great change for many, a marker in the sand, and an opportunity to rethink what we do and why. For UK banks it’s a part of their ever moving journey to be the best service provider for their customers. To provide them with the banking services they need, when and where they need them. As a partner to the banking sector we’re always there with the ‘what’s next?’ As we look at what 2021 and beyond will look like, I explore the trends driving change and shifting the evolution of the sector.

BEYOND THE PANDEMIC

As a result of the pandemic banks have seen a surge in the use of online banking and mobile apps by consumers to perform transactions they may have previously conducted in-person. How do the services offered by Diebold Nixdorf assist banks delivering seamless financial solutions to customers?

Customers who have long used online and mobile services have increasingly relied on technology during lockdown. And customers who hadn’t previously banked in this way drove increased adoption. However, there is increasing evidence that when physical banking options have been available, customer demand was strong.

Diebold Nixdorf supports banks in providing the breadth of technology services that fulfil the needs of every type of customer. From the highly digitally enabled, to those who need a little bit of both digital and physical banking, to those who still predominantly rely on their branch. Providing consumers with the opportunity to choose and flex how they bank is essential - both during a pandemic and not.

What is the impact of COVID-19 on the self-service market?

Self-service and ATMs have been undergoing consistent evolution for many years and the impact of COVID-19 is just a part of this journey. Looking back on the technology advances in the ATM market in recent years, it’s clear to see that much of the evolution into selfservice has significantly helped banks to lessen the impacts of COVID-19 for consumers. It’s an area where investment in technology has reaped rewards during a time of crisis.

As an essential service, banks are expected to provide continuous service no matter what the circumstances and they did an exceptional job during 2020. With personal interactions being reduced wherever possible, self-service terminals have provided a crucial method of upholding customer service. A bridge between physical and digital services that has enabled banks to maintain those crucial touch points.

We envisage a future where self-service continues to be this bridge. As consumers increasingly embrace technology in retail environments, they will begin to expect more of this functionality when it comes to banking.

THE IMPACT OF DISRUPTORS

How are established banks keeping pace with the new disruptors?

There’s no doubt that the banking industry is feeling the impact of some powerful brands and new entrants into the market. However, UK banks have the trust of consumers - built up over hundreds of years - through their consistency of delivery and service, and it will take a while for new disruptors to compete in this way.

For any large organisation, restructuring and updating legacy infrastructures and technology requires time and investment. But banks in the UK know that it is central to retaining the trust they have earned. Because of this they are motivated to keep pace and are working to keep the needs of their customers front of mind.

We work with banks to make sure that the adoption of new technology is as seamless as possible and to ensure that technology is integrated flawlessly into the overall experience. Banks are keeping pace by updating their apps and online account servicing and embracing technology, such as self-service systems, to improve the in-branch and remote banking experience. But what’s of upmost importance when adopting this new technology is working behind the scenes to connect all of these elements – for the benefit of both the customer and the bank.

Our solution is simplicity: futuristic in-person banking technology, built on fully integrated software, with a flexible, customisable interface to allow banks to engage with customers through their distinct brand identity.

LOOKING TO THE FUTURE

What do you think the future developments are for the industry?

The banking industry will continue to innovate and develop - driven by the needs of the consumers it serves and technological developments. There are distinct learnings from 2020 - such as the importance of richer transactions - that will see immediate development and investment, and where customers will reap the rewards. Online banking and mobile apps, in the most part, coped excellently with the surge in use but there are areas where the technology has been found lacking, such as the integration between digital and physical services. The industry is now focused on providing solutions to the problems that have been highlighted by the circumstances of the past twelve months.

We expect to see the industry focus on customer experience and I believe that 2021 will be the year when we see decisive impetus added to banks' strategies around the

continued role of bank branches. Now is the time for change across branches to reach scale and to provide consumers across the UK with the elevated experiences they expect. The future is driven by customers and they will stay front of mind as banks keep pace with the ways in which the world has changed recently.

What are your future plans for developments?

Diebold Nixdorf believes in being a partner that helps banks to actively drive the industry forward. By working together we provide technology services that offer integrated future-facing solutions, which allow banks and retailers to give the best possible customer experience. Our plan is to continue to present our customers with new and innovative technology, which will enable them to be agile and deliver a truly connected experience.

Matthew Phillips Vice President, Head of Financial Services UK & Ireland, Diebold Nixdorf

Diebold Nixdorf is a world leader in enabling connected commerce. We automate, digitise and transform the way people bank and shop. As a partner to the majority of the world’s top 100 financial institutions and top 25 global retailers, our integrated solutions connect digital and physical channels conveniently, securely and efficiently for millions of consumers each day.

Bridging the divide between frontier, emerging markets, and the rest of the world.

Crown Agents Bank boasts financial market experience that spans almost two centuries, with expertise in foreign exchange for emerging and frontier markets. The multi-award-winning organisation was named by Global Banking & Finance Review as “the most exciting, innovative and promising” forex bank in The Next 100 Global Awards and Fastest Growing Forex Bank in Africa 2020. We spoke to the CEO Albert Maasland about the services they provide, the technological strides they’ve made to address the complexities of foreign exchange in emerging markets, and the effects of COVID-19 on cross-border payments services.

Crown Agents Bank (CAB) specialises in payments and foreign exchange for digital payment specialists, official development agencies, nongovernmental organisations, commercial and central banks. Can you tell us more about your business model?

Crown Agents Bank’s mission is to ensure moving money in, out and across developing, emerging, and frontier markets is as efficient as possible. We have a range of institutional clients as many stakeholders are interested in our core business of moving money, meaning we work with commercial banks, central banks, governments, payment companies (non-bank financial institutions), international development organisations and pension schemes all over the world. Through our wholesale FX and cross-border payments services, we are able to provide cost-effective services to and from many countries that historically have experienced high costs and complexity in moving money where it is needed. From our London base, we focus particularly on FX and payments in Africa, the Caribbean, Central and South America and the Asia-Pacific, and act as a commercial gateway for entities seeking to transact with these regions.

What is the value proposition CAB offers to clients?

CAB is a true specialist in what are often called frontier markets. One of the most unique aspects of CAB is its heritage; we have been operating for nearly two centuries and have developed particularly strong relationships in some of the world’s hardest-to-reach markets. We specialise in serving markets that other players can’t as they lack the network, adaptability or expertise of a boutique bank like CAB - something that we’re really proud of.

Our aim is to help our clients to safely and securely move money where it’s needed most, and this is reflected in our currency offering. We offer direct access to over 100 frontier, emerging and G10

market currencies across more than 500 currency pairs – many being illiquid or rarely-traded tender.

What are the challenges and opportunities of working in these challenging markets?

There are significant costs and complexities associated with moving money in or out of emerging and frontier markets, both in terms of FX conversion and the associated payment costs. These markets often suffer the most in the face of natural disasters, economic downturn or political disruption. Logistical difficulties exist regarding the physical movement of money, driven by inefficiencies, limitations in correspondent banking relationships, exchange controls and limitations in interoperability between traditional and emerging payment systems. Both individuals and businesses struggle and may suffer from processes that are expensive in terms of time and cost. We aim to reduce these challenges on behalf of our clients.

We understand the unique challenges that many of these regions face and our work helps to facilitate remittance, development aid and capital flows, both on an intra- and extra-regional basis.

Technology is a driving force at CAB. In 2017 you launched EMpowerFX. What makes this platform unique and how has it helped strengthen operations?

CAB’s FX specialises in illiquid markets with a wide-ranging exotic currency offering and a unique, established payment network in hard-to-reach territories. Our automated trading platform, EMpowerFX, is a prime example of the technology deployed to provide better FX service for emerging markets.

EMpowerFX was launched in late 2017 to provide clients with real-time, direct access to competitive FX pricing and execution capabilities across all major traded currencies and emerging market currencies. We currently support trading in excess of 500 currency pairs on the platform. Users gain instant access to our exotic FX pricing, live market news feeds along with access to major traded currency pairs.

The EMpowerFX platform provides an efficient, one-stop venue to buy even some of the least accessible currencies at competitive costs. The service is designed to facilitate as frictionless a process as possible, saving time and effort.

How did the acquisition of Segovia expand on the bank's vision?

The acquisition of Segovia, a USbacked technology company which focuses on frontier market payments, marked the next chapter in our technological transformation. The acquisition has allowed us to extend our payment network, adding mobile money payment capabilities and Segovia’s modern payment gateway to the bank’s extensive FX capabilities. As a result, we now offer a scalable and efficient payment solution for global institutions. Segovia brings additional technical talent to the task of expanding our digital bulk payment solutions for organisations tied to our FX liquidity capabilities. The acquisition improves our customer offer with the benefits from the combined network and strong relationships throughout Africa and other regions of the world as we combine our extensive FX and payment capabilities in a single platform.

Can you tell us about how your recent partnerships, including Paycode, benefit clients?

We are quickly becoming an FX and digital payments powerhouse, having started an ambitious programme of digital transformation a few years ago.

We announced our partnership with Paycode, a South African fintech specialising in biometric payments, back in July with a goal to reach 100 million unbanked individuals in rural Africa with our combined solution. We are working on a number of fintech and other institutional partnerships, each designed to extend the reach and facilitate financial inclusion and better, more reliable and efficient services.

In relation to the current pandemic, how are foreign exchange services and cross-border payments being affected? How is the bank responding to COVID-19?

The COVID-19 crisis is having a widespread effect on both foreign exchange services and cross-border payments. The pandemic has posed many challenges to emerging and frontier markets, many of which are beyond their control. Lockdowns paused everything, globally, meaning that remittances, travel and trade were massively hit.

We are witnessing pressure on many frontier and emerging markets as a result with increased volatility due to shortages of hard currency impacting many currencies, reinforcing the importance of working with specialists in this field. We have also witnessed a significant increase in digital payment activities, as remittance and development aid organisations in particular look to digital solutions to overcome the challenges of lockdowns and restrictions on movement across many markets.

During these troubling times, we have continued to play our part by continuing to provide tailored services, support and settlement as usual. We work to ensure our clients have access to liquidity and that payment corridors stay open - something that is absolutely crucial for moving money into and across developing markets.

Despite the challenges, we continue to see significant growth in our FX and payment activities because of our specialist capabilities.

What does the future look like for CAB?

There are very few limits to our growth opportunities on the back of our continued investment in our partner network and infrastructure. We want to build on the success we’ve already achieved, maximising the potential of technology and continuing our digital transformation journey to support the provision of affordable, secure FX payment services in hard-to-reach markets.

We will continue to add new currencies and alternative payment capabilities, ensuring that money can reach the people and organisations who need it most. Albert Maasland CEO Crown Agents Bank www.crownagentsbank.com