NCBA Bank has announced a partnership with NALA Payments Limited, a fintech company specializing in international money transfers, to improve the remittance process across Africa. The collaboration aims to provide faster, more affordable, and secure money transfers from the United States, United Kingdom, and European Union to African nations, particularly Kenya.
Under this agreement, NCBA will serve as NALA’s settlement bank in Kenya, facilitating foreign exchange and last-mile settlements via mobile money and bank transfers. The partnership is expected to improve the efficiency of cross-border remittances, helping customers access more convenient and reliable options for receiving funds.
Remittances are a key contributor to Kenya’s economy, with August 2024 figures showing that diaspora remittances reached $427 million. This highlights the significant role that money transfers from abroad play in supporting livelihoods and driving economic growth. The partnership between NCBA and NALA seeks to make these remittances more efficient, aligning with Kenya’s financial inclusion goals by improving access to digital financial services.
NALA Payments has obtained the necessary regulatory approvals, including a remittance license from the Central Bank of Kenya. This ensures that the services provided comply with local and international standards, making the remittance process more secure for users. With the increasing importance of fintech solutions in financial services, the integration of NCBA’s digital capabilities with NALA’s remittance platform promises to strengthen the financial ecosystem in Kenya and the wider East African region.
NCBA’s Group Managing Director, John Gachora, emphasized the bank’s commitment to supporting fintech innovations as part of its broader strategy to digitize banking services and promote financial inclusion. He expressed excitement about the partnership’s potential to enhance remittances, making them faster and more secure for Kenyans and the broader East African region.
Similarly, Nicolai Eddy, Chief Operating Officer at NALA, underscored the importance of the partnership in enhancing the financial infrastructure required to support diaspora remittances. Eddy noted that NALA’s compliance with regulatory standards in key international markets aligns with the goals of Kenya’s Central Bank, further boosting confidence in the security and efficiency of the remittance process.
This partnership highlights the growing role of fintech in reshaping financial services across Africa. By combining NCBA’s robust digital banking infrastructure with NALA’s remittance platform, both companies aim to create a more seamless and accessible experience for users sending and receiving money across borders. As Kenya’s financial landscape becomes increasingly digitized, collaborations like this one will play a vital role in driving financial inclusion and fostering economic growth.
The NCBA-NALA partnership reflects a broader trend of integrating technology into financial services, ensuring that remittances remain a reliable and affordable tool for millions of people across the continent.
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