Kenya’s NCBA takes a leap to Bank 4.0


NCBA Bank Kenya. File photo

from MARIA MACHARIA in Nairobi, Kenya
NAIROBI, (CAJ News) – NCBA Bank, one of Kenya’s biggest financial institutions, is investing in technology to offer inclusive services to millions of its clients.

The bank took on an ambitious project with Huawei, through its partner MuRona Technology, to build a next generation core banking designed to suit the project’s unique business needs.

MuRong Technology, one of Huawei’s solution partners, is a leading provider of new digital core banking systems and IT solutions for scenario-specific finance.

Amid the pandemic, Huawei and MuRong Technology focused on NCBA’s needs by conducting a comprehensive analysis of the bank’s services and designing a rigorous digitalisation solution.

After extensive testing for a year, they delivered a next-generation digital core banking system in November 2020.

The solution included migrating the services of 80 million small deposit and loan accounts as well as consumer loan accounts, which allowed the new system to provide better services with increased capabilities and performance.

This is Kenya’s first core banking system that uses distributed architecture, slated to support the bank’s business development over the next decade.

On the first day of operations, the system migrated data from 60 million accounts all at once, reaching 420 transaction processing system (TPS) at the peak of system performance.

Built on a distributed DevOps framework, the next-generation digital core banking system provides agile and robust technical support for NCBA Bank’s digital financial services.

The new M-Shwari core banking system is hailed as opening up a world of possibilities for the bank, enabling it to deliver its promise to customers.

Established eight years ago by NCBA Bank and Safaricom, M-Shwari has empowered millions of customers across Kenya by enabling real time access to financial services to its over 35 million users.

The service leverages on mobile penetration to enhance access to financial services across the country.

“The choice of technology used has enabled NCBA to execute their business model with important considerations such as customer experience,” said Eric Muriuki Njagi, Director of Digital Business at NCBA Bank.

“Today, every business is about experience. We offer customers world class experiences while consuming financial services. We have an aim to be Africa’s most valued digital service platform.”

The cooperation between NCBA Bank and Huawei has laid a foundation for the bank’s long-term sustainable development.

Stone He, President of Huawei CLOUD Southern Africa Business, said the joint investment into building an excellent cloud system for NCBA Bank was a win for the company.

“Coupled with our extensive experience and NCBA Bank’s willingness to venture into a higher level of digital growth, we are impressed with the relative flexibility and ease of this partnership,” He said.

“The banking sector is a key driver of economic growth for Kenya and Huawei CLOUD is pleased to be part of such an impactful and influential project.”

According to data released by the World Bank, over 1.7 billion adults worldwide still don’t have access to traditional modes of banking or a bank account.

For this reason, more organisations are looking to bridge the financial services gap globally by offering inclusive financial solutions that empower all.

With over 64,7 percent of mobile phone owners failing to have access to a bank account, mobile phone penetration remains key in financial inclusion.

Nairobi, the capital of Kenya, has stood out as a hub for innovation and strategic use of mobile technology.

– CAJ News





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