Ecobank taps Singaporean fintech expertise

Singapore-based fintech group TransferTo has signed a memorandum of understanding with Ecobank, a pan-African bank operating in 35 countries, to roll out its suite of cross-border payment solutions, credit services, and digital products through its operating companies: Thunes, Ezra, DT One, and Tookitaki. The partnership is expected to boost financial access and cross-border payment options in Africa.

The collaboration will see Thunes, a global business-to-business payment infrastructure platform, facilitate cross-border transactions across Africa. DT One will improve customer engagement by integrating rewards such as airtime, data bundles, gift cards, and vouchers into Ecobank’s banking services. On the other hand, Ezra will expand access to ‘nano’ credit (credit to support the financial needs of small business); buy-now, pay-later (BNPL) services, and enabling underbanked customers to build credit histories and qualify for larger loans over time. Finally, Tookitaki will enhance Ecobank’s compliance measures by delivering advanced anti-money laundering technology and providing specialised staff training to strengthen financial security.

The payment landscape in Africa has long been hindered by the absence of interoperability between payment systems, currencies, and countries, compounded by a lack of regulatory harmonisation. Thunes, operating in over 130 countries, aims to bridge this gap. The platform currently integrates with more than 30 African financial ecosystems, enabling seamless cross-border transactions. For example, Thunes allows funds to be sent from the MoneyGram payments platform in The Gambia to an MTN mobile money account in Ghana, or enables M-Pesa users in Tanzania to transfer funds directly to bank accounts in Kenya and Rwanda.

The potential for growth in Africa’s fintech sector is substantial. McKinsey estimates that cash still accounts for 90% of transactions on the continent, highlighting the opportunity for digital payment solutions. The growth of the industry is being driven by several trends, such as increased smartphone ownership, reduced internet costs, improved network coverage, and a rapidly growing young and urbanising population. In many cases, fintech providers are offering substantial value to customers, with transactional solutions up to 80% more affordable and interest on savings about three times higher than those from traditional players. Additionally, the cost of remittances can be up to six times lower.

In an earlier interview with African Business, Amit Jain, director of the NTU-SBF Centre for African Studies, noted that with rising mobile adoption and improved internet connectivity, Singaporean fintech firms are well-positioned to enter the African market. Several have already made inroads.

For instance, Finbots.AI has partnered with Kenyan BNPL service Faraja to deploy its AI-driven credit modelling solution, enhancing creditworthiness assessments. Meanwhile, Singapore-based Ample FinTech and StraitsX have collaborated on a project to imprive trade for small and medium-sized enterprises (SMEs) in Ghana. The initiative seeks to empower Ghanaian SMEs to engage in international trade by addressing barriers such as establishing trust with overseas partners and financial institutions, and overcoming challenges related to cross-border payments and supply chain finance. And in Kenya, Singaporean entrepreneur George Chan and his co-founder April Long have launched Pyxis, a company designed to facilitate trade between small traders and suppliers in China. Pyxis partners with Chinese payment giants Alipay and WeChat Pay to streamline transactions for products ranging from jewellery to car parts.

References

‘Thunes and M-Pesa Tanzania to boost cross-border payments in East Africa’, Fintech Africa, 21 September 2021

‘Fintech in Africa: The end of the beginning’, McKinsey & Company, 30 August 2022

‘Singaporean tech firms set their sights on Africa’, African Business, 02 August 2023

‘EDOMx selects Singapore fintech FinbotsAI to scale Faraja BNPL business & drive financial inclusion with high accuracy AI-Powered credit decisioning’, Macau Business, 10 October 2023

‘Bank of Ghana announces successful completion of cross-border trade using digital credentials’, Bank of Ghana, 12 June 2024

‘Singaporean targets Kenya-China trade with new payment platform’, NTU-SBF Centre for African Studies, 29 August 2024

‘Thunes and Ecobank partner to expand financial access and cross border payments across Africa’, Thunes, 12 November 2024