Namibia: Covid-19 forces a positive turn towards e-Banking
When the full extent of Covid-19 was finally assessed on the financial services industry, it was agreed that the pandemic has severely disrupted most global business. However, the silver lining behind the dark cloud of Covid is that technology has been put at the forefront of the financial services industry.
The use of electronic money systems (electronic money), which are currently in a closed loop in Namibia, meaning that they only work within systems of the same institution, continued to increase in 2020. banks now encourage their customers to use Internet banking services. , which has been praised for its convenience as well as for reducing corruption in the country.
According to the Bank of Namibia (BoN) Annual Report 2020, the bank observed an increase in the use of electronic money as a payment instrument, which shows a change in the payment behavior of users of the national payment system. .
In 2020, the value and volume of e-money transactions increased to N $ 41.2 million and N $ 65 million, respectively. The central bank said the increase can be attributed to change in consumer behavior, in general, and the spread of Covid-19, in particular, as lockdown regulations have prompted various entities to use electronic money systems like Preferred payment method for value disbursement to recipients.
The value of intrabank electronic funds transfer (EFT) transactions settled in commercial bank money also increased to N $ 110.2 billion in 2020.
“Intrabank EFT transactions have increased steadily over the past five years (2016-2020). The increase can be attributed to the real-time processing of intrabank payments within accounts of the same banking institution,” the report reads. central bank report.
At the same time, intrabank payment card transactions in 2020 were slightly lower than the transactions reported in 2019.
The bank said forty million card transactions were processed between merchants and customers of the same banking institutions, amounting to N $ 28 million, which is a slight decrease from the N $ 30 million reported. in 2019.