REDCLOUD Technologies – an Enterprise Software provider of leading mobile financial services technology announced agreement with Innovectives LLC to provide Agency Banking technology to Nigerian banks, mobile money operators and other financial institutions. Innovectives, an integrated Fintech company, is a MasterCard Payment Facilitator, UnionPay Third Party Processor, licensed Super-Agent and Payment Aggregator as well as a certified mobile Point of Sale solution provider.
Nigeria’s move to enhance financial inclusion (set by the Central Bank of Nigeria) includes issuing 1 of 2 licences to ‘Innovectives Limited’. Operating as ‘Super Agents’ within the financial system, Innovectives will deploy, operate and manage interoperable agency banking and mobile financial payment networks as approved by the Central Bank Of Nigeria (CBN) with selected retail outlets operating as agents under the framework.
Innovectives have an existing network of over 1000 agents made up of small to well established institutions including retailers, petrol stations, and service providers. They have the goal to reach thousands more over the next 3 to 5 years in order to achieve their vision of being the leading integrated Fintech company contributing at least 30 percent of their market. According to the World Bank, the ten countries with one of the highest proportion of residents living unbanked in extreme poverty are located in Sub-Saharan Africa. Even remotely, mobile financial usage is more widespread than having a bank account.
RedCloud’s collaboration with Innovectives will enable Nigerian banks, mobile operators and other financial institutions to grow their business and improve customer experience in the market by reaching users in remote areas, offering customer registration and giving over-the-counter customer financial transactions (including utility bill payment, airtime top-up and other innovative financial services).
The RedCloud One platform will connect to the Nigeria Inter-Bank Settlement System (NIBSS) to access all licensed banks and financial service providers in Nigeria and provide complete interoperability to Innovectives network of agents. RedCloud is supported by its local partner TSI Global Technologies for integration, deployment and support services. TSI Global Technologies has already helped many Financial Institutions in the area of integration and its core operations. Its consultants have been involved in a number of Apex banks integration in the subregion.
The Award-Winning Platform – RedCloud One – built by the technology team behind M-Pesa, facilitates a ‘plug and play’ infrastructure to deliver innovative services including ‘Agency Banking’ and ‘Banking as a Platform’.
MTN abandons mobile money in home market
MTN HAS SHUT DOWN ITS mobile money offering in South Africa.
The service has been in operation since 2012, but in September, MTN stopped allowing new customers to sign up. The service has now been officially discontinued, with a statement reading: “Following much deliberation, MTN South Africa has taken a decision to decommission its Mobile Money offering due to lack of commercial viability.”
The decision echoes Vodacom’s shuttering of its M-Pesa mobile money service in May. Both Vodacom and MTN have seen significant uptake of their mobile money offerings in other African markets, demonstrating the difficulties faced by such services in South Africa.
Part of the issue is that compared to many African countries, South Africa has significantly more developed traditional banking infrastructure and services. This means that there is not such a strong incentive for consumers to adopt mobile money.
MTN has confirmed that its mobile money offerings in other African markets will continue unaffected. While its South African service gained 2 million registered customers, chief consumer office Larry Annetts stated that operating costs were now “prohibitive”. He did however note that MTN was open to exploring other financial services in South Africa.