National Bank to offer Cheque Truncation

Posted on March 11, 2011

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Nairobi March 2011… Electronic Financial Technologies Kenya Limited (EFT), part of the Paynet Group, has signed a deal with National Bank of Kenya to provide the software and services to enable the bank to deliver Cheque Truncation.

EFT teamed up with Finteq South Africa to offer a solution which meets the requirements of the Kenya Bankers Association for this service, as well as offering significant additional functionality such as Document Management and Workflow.

The service will allow Kenyan banks to electronically process and clear cheques and other electronic funds transfer data between their institutions and the Clearing House at Central Bank of Kenya, without movement of the physical documents.

National Bank are rolling out the solution to its branch network, in preparation for the ‘’go live’’ date set by KBA in the next couple of months.

EFT Managing Director Shaun Mumford said, “We believe that the both KBA and Central Bank of Kenya have a very forward looking approach to the exchange of Information and Value between institutions.

This move to eliminate the physical movement of cheques will reduce costs and improve efficiency within the whole industry. National Bank should be congratulated for choosing a system that has allowed them to re-engineer the entire process within the bank, and not just add the movement of images to their existing system.

This positions National Bank for significantly more gains from the change than would be achieved by just making the minimal changes required to comply with the Cheque Truncation Mandate.

We continue to work with the team at National Bank to deliver on this vision.”
“Finteq is a renowned market leader, based in South Africa, developing banking solutions for large institutions in Africa and increasingly outside the region.

We are confident that the solution on offer today via National Bank of Kenya will fully comply with the Kenya Bankers Association cheque truncation requirements and standards, as well as providing other major benefits.” added Mumford.
Mr Alidan Mbinda, Head of Operations at National Bank of Kenya said, “National Bank has embarked on advancing its services by adopting the latest technology such as electronic cheque processing which comes right at the time when institutions in Kenya and the rest of the world are in the process of migrating from the current paper-based cheque clearing process at the central bank’s Clearing House to a full image-based electronic cheque clearing.

“National Bank implementing this solution, is a clear indication that the bank continues to be a leader in streamlining its operations so as to achieve the very highest levels of customer service”, added Mr. Mbinda.

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