Oromia International Bank Acquires Agent and Mobile Banking System for 5.5m Br

Oromia International Bank S.C (OIB) began the installation of agent and mobile banking system on March 3, 2015, a system that it procured at a cost of 5.5 million Br from Techno Brain.

The tender was announced last year. At the time, 14 IT suppliers had purchased the bid document to participate in the bidding process. Techno Brain, mFino, CopyCat Ltd., Fintech, Estel and Infosys were among them.

Techno Brain provided a software solution called FinMobiConnect, which allows the customer to deposit and withdraw cash, make loan repayments and disbursements as well as fund transfers.

The system will provide all major banking services except giving loans, international banking services and foreign exchange, Abie Sano, president of OIB told Fortune.

“It will give opportunity for the Bank in areas where our branches are not located,” stated Abie.

As of June 30, 2014, the Bank has 106 branches, having expanded on the previous number by 41. Thirty-one of the newly opened branches are located in Addis Abeba while the remaining branches are outside of the capital.

According to an agreement made by Techno and OIB, the former will finish the installations within two months and the service will commence.

The system will increase the reach of the Bank by providing services far and wide, especially in the rural areas, according to Mekonnen Tesfaye, Techno Brain Ethiopia Country Director.

Established in 1997 and headquartered in Nairobi, Kenya, Techno Brain has a presence in over 19 countries across the African continent and has six more offices in Asia and the United States. Recently, it supplied CORE insurance solution, developed by the Indian based company, CMC Limited, to Nib Insurance S.C.

“As of now, we are in the process of selecting agents that we think fulfill the preconditions set by OIB and the directive of the National Bank of Ethiopia (NBE),” added Abie.

According to NBE’s directive, any person who is engaged in valid and lawful business or commercial activity within Ethiopia can be an agent of a financial institution. However, if an agent has a specific regulatory body to which it is accountable it shall produce written consent from the regulatory body permitting it to enter into such an agreement.

“The process of documenting the profile of agents that we think are fit to provide the service has been undertaken. After selecting agents, the Bank will give them training of not more than a week before they get into the actual process,” said Abie.

Financial institutions making agency arrangements should have clear and documented due diligence policies and procedures, according to the directive.

Once the system is up and running, it will make OIC a new member of the banks in Ethiopia that provide agent and mobile banking. United Bank S.C, Dashen Bank S.C, Commercial Bank of Ethiopia (CBE), Wegagen International Bank S.C and Berhan International Bank are the banks that have so far integrated the system with the services they provide. Dashen Bank was the first to acquire the system.

According to OIC’s 201314 annual report, it registered 154.3 million Br, exceeding the previous year’s performance of 78.1 million Br. The bank has also managed to increase earnings per share to 310 Br from 192 Br in the preceding year.

Source : Addis Fortune