When it comes to transfer of money from one part of the world to another, there are many options available, with the most common being open banking. Open banking, however, has many limitations that have been set by the various governments and banks. There are, however, other options available. The most popular ones are: electronic transfers, mobile phone based transfers, online transfers, and fixed deposit transfers.
The most common and popular of all the digital solutions for money transfers is electronic transfers. This can be done either by using a bank’s website, over the internet or through mobile banking. These transfers are safe since they happen between banks and their respective websites and service providers instead of between individual accounts. For obvious reasons, electronic transfers are very convenient.
Another popular and reliable option for making money transfers to Africa is through mobile banking. This is done through mobiles as they are convenient, cheap, and most importantly, fast. Unlike regular bank transfers, they are not subjected to any legal regulations or federal taxes. There are many mobile phone based companies in Kenya, providing this service. The most popular service provider is MTN, which is owned by the telecommunications giant, MTN corporation.
A mobile money transfer platform based in Kenya offers the convenience of sending money to almost all African countries. Amongst the most commonly used currencies in Kenya are the African dollar and the Kenyan shilling. The two remain the most popular, especially since they are both strong in the local market. Digital currencies such as the platinum dollar and zebra dollars have recently gained in popularity in Kenya.
Mobile banking in Kenya is another option. The phones used to access these services can either be connected to a bank or a mobile money company. A bank account is pre-built at most banks, but there are some cases where one has to open an account. There are also private money lending companies, mainly banks, which offer mobile money based on their own infrastructure.
Another option available for mobile financial services in Kenya is the internet. Most Kenyans have access to the internet, especially through their mobile phones, through which they can transfer money to almost anywhere in the country. An example of this is M-Pesa, a mobile payment service that is accessible from almost all parts of the country. This service uses Near Field Communication (NFC) technology, which allows users to transact through their smartphones. However, there are other methods of mobile financial services in Kenya, including telesales and text message banking.
In south Africa, most of the transactions are still made by means of cash. However, there are companies that have developed technologically advanced cashless money transfers through mobiles. One example is ZuZubo, which enables its users to make secure online transactions in more than 200 countries and currencies. The main aim of ZuZubo is to ensure that it provides the most convenient, instant, and easy-to-use money transfer platform anywhere in the world.
However, it should be noted that most of these technological wonders would have been much more efficient and effective if they had been subject to stringent and regular regulation. Regulating fintech companies help keep them within the purview of good business practice and prevents them from exploiting state-of-the-art technology for personal gain. Apart from this, regulation helps ensure that consumers are protected from fraudulent use of financial technologies. Most of the African countries are no strangers to the use of digital solutions for money transfers, nor to the rapid adoption of such technologies by companies from developed countries.