By Foday Moriba Conteh
As a way to provide a platform that facilitates interconnection and interoperability between payment channels of various players in the financial landscape of the country, His Excellency President Dr. Julius Maada Bio, has on Wednesday 3rd May, 2023 at the Bank of Sierra Leone Staff Recreation Complex on Kingtom in Freetown, formally launched the National Payments Switch Service, a banking system that seeks to improve banking transactions among banks, starting with six banks in the country.
According to the Bank of Sierra Leone, the already activated integrated service system allows Automated Teller Machines (ATMs) and cardholders of Eco Bank, Guarantee Trust Bank, Rokel Commercial Bank, Sierra Leone Commercial Bank, Union Trust Bank, etc. to access money quickly in a more secured manner among the banks.
In his address, the Acting Bank Governor, Dr. Ibrahim Stevens, said that no time was better than now to launch the national switch, adding that that the process leading to the launch had gone through long challenges in the past but due to President Bio’s inspirational guidance, the service had finally been launched.
He maintained that the Government is moving towards a digital society and the Bank of Sierra Leone is spearheading the migration, especially for the financial system to be technology driven and that with the modern payment system, the problem of delayed transactions is addressed with rapid forms of transactions involving billions of local and international currencies.
The Acting Bank Governor assured that the launch of the service has created access to new markets, will increase efficiency and cost savings, enhance security and improve the customer experience, thereby shifting the role of banking from the issuance of traditional bank notes to a modern and dynamic payment ecosystem.
He added that during the Phase one which has been launched, one can conduct transactions on any ATM or POS regardless of the bank card or bank account one has.
With regards to Phase 2, which is instant payment he said that Phase will interoperate Mobile Money Operators (MOs), other Fintechs and bank accounts such that customers can make instant payments using any of facilities from any location and for Phase 3 it relates to International Payments.
The World Bank Representative, Lydia Ndebele, congratulated the Government of Sierra Leone for the successful launch of the national payment switch, adding that the World Bank recognizes the strong efforts of the Government to address critical constraints on the banking sector’s ability to finance and accelerate the payment system mobilization process.
She stated that the official launch marked an important milestone in addressing the very short but detailed probability of the electronic payment system, and users experience focused customer advancement.
The World Bank Representative used the opportunity, on behalf of the World Bank, to call on key financial institutions to take advantage of the service adding that the World Bank is committed to financial inclusion in Sierra Leone.
Giving his keynote address and launching the National Payment Switch, His Excellency President Julius Maada Bio said with the launch of the payment system Sierra Leone is taking another major step forward in this era of the fourth industrial revolution.
He said that the country is deploying and leveraging the power of technology to ease the rapid flow of millions of financial transactions within and across borders in seconds through a single interface, adding that the National Payment Switch facilitates interconnection and interoperability among the channels of various players in the financial landscape. This would include commercial banks, microfinance institutions, mobile money operators, and financial technology firms (FinTech).
He added that the payment system is cost-effective and would, therefore, lead to increased commercial activities because banks could now issue more cards and other digital financial tools like point-of-sale systems, ATMs, online commercial portals, and more.
The President also noted that he had been reliably informed that the system would process transactions from all bank customers, regardless of the type of card they use and route them to a central switch for settlement at the Bank of Sierra Leone.
He pointed out that his Government has been able to complete and implement this project because they are driven by an unflinching commitment to strengthen the role of the private sector and the banking and financial services sectors in the inclusive economic growth agenda.
“Even people in rural areas, where there is no bank or no physical financial service structure can now have access to financial services through electronic card payments or other digital financial tools. Those rural populations can do their financial transactions without having to endure time-consuming and expensive trips to the nearest financial services center,” he revealed.
He expressed excitement about the National Switch saying it will enable Government to deliver public services in a more effective and efficient manner, stating that social welfare payments, including pension and welfare benefits, can now be disbursed directly into the accounts of beneficiaries through the National Switch. That, he said, will ensure timely and secured delivery and also maintains an electronic footprint of transactions.
Climaxing the ceremony was the official demonstration of the National Payment Switch by His Excellency President Dr. Julius Maada Bio.
