South African Ukheshe, an integrated finance enabler and provider of Banking-as-a-service (BaaS), has partnered with Diamond Trust Bank (DTB) to offer a BaaS platform in East Africa.
BaaS, which comprises the distribution of banking goods and services by third parties, is predicted to develop at a compound annual growth rate (CAGR) of 25% in a number of areas, and the partnership is expected to help both parties stay ahead of the rapidly rising growth curve.
Ukheshe – Diamond Trust Bank partnership
The firm, which has been searching for a regional banking partner, is excited to collaborate with DTB as a progressive bank with a shared goal for BaaS, according to Mark Dankworth, President of Business Development at Ukheshe Africa. By working together, the firms will help DTB establish cutting-edge enterprises in the East African market as it aspires to be a tech company with a banking licence.
Although banks are largely backed by regulators, the digital payment environment in this sector is now dominated by mobile network operators (MNOs) and provides a variety of regulatory difficulties to new participants. According to the spokesperson, baaS partnerships like the one between Ukheshe and Diamond Trust Bank are thought to be the best course of action for all sides since they allow banks and fintechs to compete with the major MNOs while still adhering to all regulatory standards.
In East Africa, BaaS is provided by Ukheshe and Diamond Trust Bank.
As customers become more aware of their alternatives and start to prioritise convenience above price, according to Jamie Loden, Chief Operating Officer at DTB, the market is ready for new offers. This is expected to open up new prospects for agile BaaS models.
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Benefits of the Ukeshe – DTB partnership on tech firms
According to the details provided in the press release, Ukheshe used the Eclipse platform to construct Wallets as a Service as a component of the Astra platform, which was launched by DTB in Kenya with further launches scheduled for 2024 in Uganda and Tanzania. This will make it possible for fintechs, edtechs, and other technology-enabled enterprises to collaborate freely with a sponsoring bank, speed up regulatory approval, and have access to a variety of payment products via an API orchestration layer in these countries. In addition to other carefully selected digital financial services, the goods include wallets and a wallet management system, QR payments, payment services, SME solutions, SoftPOS, digital KYC, and virtual and real cards.
Meanwhile, Loden explained that the cooperation will help DTB and Ukheshe both work together to accomplish respective organisational strategic goals from the perspectives of customer acquisition, value packaging, support, and management. DTB will employ Ukheshe’s technology to advance innovation, improve the distribution of financial services, and offer services to its consumers, while Ukheshe will make use of the bank’s position to be able to compete in the market.
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According to Dankworth, this is in line with Ukheshe’s vision for the future, and the partnership will allow the business to meet regulatory requirements for entering new markets, particularly in East Africa, while also assisting the bank in rapidly expanding its customer base and bringing on fintech partners to the Astra platform. In the larger picture, the cooperation is meant to promote innovation and growth while providing a solid foundation for fintechs to adopt, develop, and expand cutting-edge technologies and navigate regulatory challenges. By advancing digital banking services in this way, physical currency usage is reduced, improving both end users’ and the market’s overall financial inclusion.