Financial services company Equity Bank Kenya has partnered with Tanzanian startup NALA Payments Limited to make it easier for people in the diaspora to send money back to Kenya.
Through this cooperation, Kenyans living in the United Kingdom and the United States will be able to send money immediately and at the best rates to Equity Bank Kenya accounts and other mobile wallets by using the NALA app.
Customers of Equity Bank Kenya can take advantage of integrated financial services. By choosing NALA as its technology partner, the Bank strengthens its position in remittances by providing its customers with access to straightforward, quick, and competitive services that take advantage of the expanding use of digital channels.
Having a strong financial infrastructure also enables NALA to consistently serve its customers in the United States and the United Kingdom who want to save money and make investments in the Kenyan economy.
“NALA’s mission is to increase economic opportunities globally and partnering with Equity Bank is a foundational step for us. Combining NALA’s technology with Equity Bank’s reach allows us to build stronger financial infrastructure for Kenyans worldwide,” NALA CEO Benjamin Fernandes commented.
“Payments in Africa are 1% built, and technology enables us to make strides towards integrating the financial tools for advancement.”
The agreement solidifies the bank’s position as the top bank helping Kenyans in the diaspora send money to their loved ones and for investments, according to Robert Kiboti, Equity Head of Private Banking, who spoke on behalf of Equity Bank Kenya’s Managing Director Gerald Warui.
He continued by saying that the bank is excited to collaborate with NALA to close the access gap. He claimed that this connection will aid in extending the geographic scope of the remittances market.
“Equity will continue to build linkages with like-minded partners such as NALA to ensure that all its members have access to seamless and most competitive remittance services,” he said.
“Using fintech capabilities has given us a global presence, and as a result, we have become a major processor of remittances payments around the world including across currencies.”
By capitalizing on the rising popularity of digital methods for sending money home from abroad, Equity increased the volume of diaspora remittances it processed by 39% in 2021 compared to the equivalent period in 2020.
In the 12 months ending in December, it processed KSh383.5 billion (US$3.23 billion) in remittances, an increase from KSh279.4 billion (US$2.35 billion) in 2021.
Another new office for NALA is opening in Nairobi, which will house a third of the organization’s workers. Although NALA employs a distributed workforce across the globe, operational elements including partnerships and customer support will be based at the Nairobi headquarters, led by NALA COO Nicolai Eddy.
Africa remains the most expensive country to transmit money despite the variety of choices available for doing so from overseas.
The average transfer fee to Africa is estimated by the World Bank to be 9%. Furthermore, a lot of the currently available solutions have unstated charges that make it difficult to determine the actual cost of sending money. The two parties signed a comparable agreement in Tanzania last year.
By offering fair and transparent services to give individuals control over their finances, NALA and Equity Bank are revolutionizing the way financial instruments are used throughout the region.