The increasing popularity of Stanbic Bank’s Borderless Banking platform in East Africa has exposed a latent demand for hassle-free, instantaneous financial dealings across national boundaries.
From almost nothing in January 2021 to USD 40 million of transaction volume in March 2022, the Borderless Banking solution has grown exponentially across a single network that includes Uganda, Tanzania, Kenya, and South Sudan. Only looking at the time period between February and March 2022, the number of successful transactions increased by 24%, with March 2022 seeing a total of USD 3.5 million in transactions processed.
According to Standard Bank Group’s Regional Chief Executive for East Africa, Patrick Mweheire, “clients in the region have long struggled to access cross-border transactions platforms that offer consistent, speedy, and affordable service. To drive growth and intra-regional trade in East Africa, this system was developed efficiently and at low cost”.
Upon its 2021 debut, Borderless Banking enabled Stanbic Bank customers throughout East Africa to access their accounts and conduct real-time transactions at any branch of the bank.
Customers in Uganda, Tanzania, Kenya, and South Sudan can access their money in any Stanbic account at any time from a centralized location. This streamlines their ability to transact business and access funds quickly.
Mastercard found that 47 percent of small businesses are conducting more international trade now than they were before the spread of the Covivirus-19. Most entrepreneurs (roughly 68%) think that the smooth operation of the international payment system is directly responsible for their company’s continued existence.
According to the report, cross-border payments are a key growth driver because 63 percent of consumers use them to help out their overseas friends and family. Accordingly, Stanbic recognized the significance of maintaining reasonable prices. For instance, the network’s standard fee for making a cash deposit is zero dollars, and the standard fee for making a cash withdrawal is three dollars.
All financial transactions, including deposits, withdrawals, charges, and customer authentication, are processed instantly on a robust and safe platform. Due to this, businesses can now more easily seek out and access international trade, with significantly reduced turnaround times, data mining, tracking of funds, and growth.
In the past 12 months, deposits have accounted for 80% of all transactions, with withdrawals accounting for the remaining 20%. Oil and gas, energy, non-profits, industry, manufacturing, agriculture, and even governments are among the top sectors that stand to gain from the platform.
Mweheire claims that progress toward a resolution is steady and visible. “Standard Bank sees this as a step toward becoming a true platform business; in the meantime, the bank will continue to set its own payment strategy and agenda”
“Our truck drivers no longer have to stress over transporting large sums of money across international borders. They have access to all of the Stanbic branches in the area, which has increased productivity and made the roads safer for our drivers”, he says.