In conversation: The changing face of financial services

We recently caught up with Sankha Jinasena, Director of Sales of Be Mobile Africa where we chatted about how neobanks are changing the face of financial services as well as trends and what most excites him about Be Mobile Africa’s business banking offering.

Jana: The neobank landscape is changing the face of financial services. What is the biggest opportunity you currently see?

Sankha: The opportunity for African businesses to become real global players. By enabling businesses in Africa to have multi-currency accounts such as USD/EUR/ZAR/NGN +17 emerging market currencies, it becomes easier to conduct cross border business with other companies around the world, whether the companies are based in Europe, Asia or America and most importantly business within Africa. African based businesses have struggled for far too long with the over regulation, restrictions and the costs of using traditional banks. With the technology behind neobanks you will not have to wait days, weeks or months in some cases for cross border payments to be settled. Businesses move fast, currency rates are moving daily and it is imperative to send and receive payments within minutes and hours rather than days and weeks. Neobanks provide speed, reliability and ease of use that enables any business to operate in the global economy.

Jana: What problems do you see neobanks solving in the next 5 — 10 years?

Sankha:

• Cash flow problems due to delayed payments.
• Higher savings — Companies can invest in crypto currencies and the blockchain in order to earn higher yields and optimise treasury management.
• Reduce costs of operating globally — Neobanks will enable companies to send and receive multi-currency payments at a fraction of the costs of a traditional bank.
• Interoperability — Neobanks provide much higher interoperability than traditional banks, i.e. Neobanks can provide services for fiat/cryptocurrencies and mobile money. All you need is a mobile phone and you have the ability to conduct traditional banking services in the palm of your hand, whether it is cross border payments, opening a savings account or getting a loan.

Jana: A BPC report I recently read shows that there has been a rise in the launch of digital banks in Africa since 2017, due to the growing needs of the continent’s population and low banking infrastructure. What trends are you currently seeing in the neobank space?

Sankha: Neobanks are providing the opportunity for a large portion of low income groups in Africa to be part of the financial system. Many of the issues in Africa that have kept millions of people in poverty are due to a lack of financial services. We are currently seeing a huge uptake of fintech’s and blockchain technology in Africa. The interoperability of these platforms allow you to plug in multiple payment services and platforms that will enable people in some of the most remote areas to be part of the financial system.

Jana: While Africa currently has 21 digital banks that together serve more than 18 million customers, South Africa and Nigeria alone account for around 80% of these structures. These countries are the most developed on the continent in terms of network and internet infrastructure. Which other markets is Be Mobile Africa currently exploring?

Sankha: Sub-Sahara and West Africa are the two regions we are focusing on at the moment. Eastern and Northern Africa also part of the plans and eventually the whole continent.

Jana: Neobanks offer innovative features and offerings that are different from traditional banks including fast account opening, instant payments, lower costs, P2P payments, user-friendly interfaces, etc. What are some of the top innovations you’re currently seeing in the space?

Sankha: There have been many developments in this space including:

• High yield savings accounts — You can earn 5% annually on a USD or EUR account (provided by Be Mobile Africa of course)
• The ability to conduct forex transactions instantly at very competitive rates
• Having a single account that holds both Fiat and Crypto wallets
• The ability to convert crypto to fiat and vice versa and then use the account to make third party payments.

Jana: We’ve just launched Be Mobile Africa’s business offering in South Africa. What excites you most about the offering?

Sankha: Everything! Providing businesses with the ability to transact globally seamlessly. Opening multi-currency wallets in the same account — enabling businesses in Africa to manage multi location businesses around the continent. Cash flow issues will be a problem of the past — Be Mobile Africa’s Business banking platform will allow companies to send and receive funds in seconds and minutes from all over the world. Many businesses in South Africa and Africa in general have struggled with not being able to transact in EUR, USD and GBP. With the Be Mobile Business account that won’t be a problem anymore. This will enable the growth of businesses and help towards increased productivity and development in Africa.

To find out more about Be Mobile Africa’s business offering, contact Sankha Jinasena, Director of Sales on sjinasena@bemobileafrica.com.