Malawi's Central Bank debuts new instant money transfer tech
The Reserve Bank of Malawi (RBM) has introduced an instant electronic money transfer platform through National Switch (NatSwich) to fast-track interbank transactions and enable recipients to access funds instantly once a transfer is completed.
According to RBM, the platform, funded through the World Bank, will enable transactions initiated through its mobile or internet banking platforms processed instantly and made available to recipients in realtime.
The World Bank’s funding, a five-year loan facility of US$28-million, will be used to support the technology, implementation and maintenance of the project.
Member banks are only funding costs relating to in-house switches and other infrastructure requirements such as licencing and upgrades.
RBM governor Wilson Banda said: “In order to ably position the country in the envisioned digital economy and in support of Malawi’s government’s financial inclusion drive, the general public is urged to use digital payment facilities in its daily transaction needs as they are fast, safer and convenient. The RBM shall continue to collaborate with relevant stakeholders to implement measures aimed at increasing confidence and trust in digital payment solution in the country.”
Executive director of Consumer Association of Malawi John Kapito said this was a positive development that will help local banks to align themselves with technology innovation.
Kapito said, “This has come at the right time when consumers have been complaining regarding the failure by banks to provide such an efficient instant electronic bank transfer service which was a big inconvenience to customers as it was difficult and impossible to transact on such a platform which resulted in delays for online interbank transactions.”