Selcom and Business Connexion launch Interbank transfers in Tanzania

Bank customers will have reason to smile after introduction of a new Interbank Transfer Service, which would allow users to transfer funds on real-time basis across the network amongst participating financial institutions, thanks to Selcom and business Connexion (BCV).

The service, dubbed ‘Qwiksend’, allows diverse types of Inter-bank and another account through the various digital channels that their bank offers them countrywide.

A new platform intends to revolutionise interoperability in the Tanzanian financial technology industry.

“Our goal has always been to futher financial inclution in Tanzania and unveiling of interbank transfer brings us one step closer to achieving that goal. Not will interbank transfers open up a new avenue of funds transfer, but will also enable smoother transactions that are cost efficient for individuals and small scale merchants a like,” said Mr. Sameer Hirji, Executive Director of Selcom.

The new service aimed at getting rid of paper from the economy and give customers a choice whether to look at existing players, or use a cost effective platform that will guarantee trasfer of funds between four to six seconds.

Mr. Hirji pointed out that transferring funds from one bank to another bank at present involves the tradictional physical withdrawal and deposit or alternatively, the mobile route which involves the loading of funds into one’s mobile wallet and then deposit into the beneficiary’s bank account.

He added that these routes cause the new customer to incur costs twice and have proved to be time consuming and expensive, denying the customer the benefits of real time transactions.

Selcom boss explained that Qwilsend service eliminates the double-changing effect and only charges the sender once on sending the funds.

Since the Qwiksend service is managed by Selcom/BCX end to end, the service is quick, realtime and reliable.

The charges associated with Qwiksend are positioned to significantly cheaper than the current charges of existing transfer options in the market.

Qwicksend is fully operational and is expected to have over 20 participating banks by the end of March 2019 and the number is anticipated to grow to 40 banks by the end of June 2019.

Participation is through open banking Application Programme Interfaces (‘APIs’) and settlemenmt is handled by the way of existing net-off settlement processes between banks.

Qwicksend will be available on standard mobile banking (USSD and App), Internet banking and various other digital channels offered by banks where the only requirement will be to select the recipent’s bank and enter the destination account number to complete transaction.

The greatest beneficiaries of the platform inlude commercial banks that are looking for a channel for loan repayments, county governments who are grappling with automation of revenue collection, companies that are looking for a cashless solution for their distribution chain and businesses looking for a cost effective way to pay suppliers and disburse salary payments.

The main focus of the platform will be the business sector because many small and medium enterprises continue to rely on banking istruments like cheques and electronic funds transfers that can benefit greatly by using the platform.