Rapidtransfer - Awards 2023

Applicant name: Ecobank International SA

Applicant type: Private Company

Website: https://ecobank.com/personal-banking/payments-transfers/rapidtransfer

Headquarter City: Paris

Headquarter Country: France

Innovation Name: Rapidtransfer International

Innovation Type: Solution

Category: Remittance Evolution

Status of Innovation: In-market

Innovation Active Since: 12/11/2020

Innovation Description: A new remittance platform available in 25 countries in Europe – 24 EU member countries and the UK. It was launched by the Ecobank Group through its affiliate in France, ECOBANK International SA. It aims, on the one hand, to play an active part in the major send region thereby competing with established industry players who have hitherto dominated remittances to Sub-Saharan Africa, and, on the other hand, to force down the cost of remittances in the region, currently put by the World Bank report at 8% of the send value – the highest in the world. The Rapidtransfer International solution presents a 1-stop shop for account opening by African migrant workers originating from any of the 33 Ecobank geographies across Africa, and a remittance service to send money back home.

What has been a strategy you implement to be ahead of the market? With a combination of value propositions — bank account opening plus a remittance service to send money home through multiple channels — Rapidtransfer International is unrivalled in the market. Our first hand understanding of the African diaspora communities’ needs to send money to support their loved ones and also tap into yielding investment opportunities back home, led us to avail them with a solution for remote bank account opening with an additional value proposition to remit money. The unique competitive advantage which we have above other remittance services operators, is our deep presence across Africa which enables us to mobilize our entire staff strength across the Ecobank Group for direct marketing to convert our loved ones in Europe to switch to Rapidtransfer International for all their remittances needs. This requires zero marketing budget and yet delivers optimum result in line with research findings that African migrant workers are more responsive to the recommendations of people they know when it comes to the adoption of a remittance platform to send money home.

What has been your competitive advantage in adapting so quickly to market change?

Brand recognition with Ecobank association. The African diaspora community is positively responsive to Ecobank which is a household brand across Africa. It is the nostalgic pull of a home brand.
1-stop shop for online bank account opening and a remittance solution to send money back home. This is one of its kind in the industry.
Deep presence in Africa to rally the target clientele. Almost everyone in Africa knows someone abroad and our staff across the continent can be mobilized to convince their loved ones to adopt Rapidtransfer International.
Multiple payout methods including deposit to bank account (Ecobank and all other commercial banks within our geographies), mobile money services, cash pick up/over the counter payment, and Xpress Account deposit. Xpress Account is an Ecobank lite-KYC innovation to promote financial inclusion and is accessible to all, plus over 111,000 Xpress Points locations across Africa for cash pick up.
Rapidtransfer International is powered by a 1st-tier bank with the largest network in Africa making it a widely known and trusted brand.
Enduring presence and long term objective. Unlike other operators who are in the industry just for the profit and can pull out of Africa if deemed unprofitable, Rapidtransfer International is firmly anchored in Africa and provides migrants the crucial stability to plan and implement their long term investments back home.
Unique vehicle for building awareness about investment opportunities back home (as a bank affiliate) to increase migrant remittances.

What has been the biggest change that was essential for your evolution? The inclusion of the online bank account opening component and also the possibility for the unbanked recipients to open an Ecobank Xpress Account with lite-KYC to promote financial inclusion, savings culture for inclusive prosperity.

What was the inspiration for this innovation? The key motivating factor was the African diaspora contributions through remittances to the development of the continent estimated at $96.6 billion out of which $45 billion went to Sub-Saharan Africa (Ecobank geographies), while the official development assistance to Africa in 2021 was $35 billion, i.e., 36% of the African diaspora remittances. This singular point makes the African diaspora community the largest financer of Africa, providing its motherland with debt free financing. Albeit these tremendous contributions, the cost of remittances to Africa has remained the highest at 8% of the send amount according to World Bank 2021 report on global remittance flow. This high cost is partly because the dominant operators on the continent are foreign based and it is clear that “those who benefit from war never like it to end”. Additionally, the downturn in the global economy engendered by COVID-19 with the added burden of high costs greatly impacted remittances flow. It, therefore, became imperative for African institutions to play a more active role in the industry to drive down costs and facilitate greater remittance flow towards poverty alleviation, economic development and the general well being of the population. Hence the development and launch of Rapidtransfer International by Ecobank.

Who can benefit from your innovation most? The key motivating factor was the African diaspora contributions through remittances to the development of the continent estimated at $96.6 billion out of which $45 billion went to Sub-Saharan Africa (Ecobank geographies), while the official development assistance to Africa in 2021 was $35 billion, i.e., 36% of the African diaspora remittances. This singular point makes the African diaspora community the largest financer of Africa, providing its motherland with debt free financing. Albeit these tremendous contributions, the cost of remittances to Africa has remained the highest at 8% of the send amount according to World Bank 2021 report on global remittance flow. This high cost is partly due to the fact that the dominant operators on the continent are foreign based and it is clear that “those who benefit from war never like it to end”. Additionally, the downturn in the global economy engendered by COVID-19 with the added burden of high costs greatly impacted remittances flow. It, therefore, became imperative for African institutions to play a more active role in the industry to drive down costs and facilitate greater remittance flow towards poverty alleviation, economic development and the general well being of the population. Hence the development and launch of Rapidtransfer International by Ecobank.

What are you most proud of about your innovation? Ecobank’s vision is to provide world class financial services. Therefore, the innovation and deployment of the Rapidtransfer International platform in Europe and UK as a first step towards the realization of its vision, is a source of immense pride and an affirmation of our ability to attain the bank’s set objectives.

As a pan-African institution, availing our infrastructure to serve the biggest contributors to the development of Africa and the wellbeing of its people (African migrant workers remittances flow is the largest source of external financing and surpasses development assistance to the continent in 2021 — $35 billion compared to $96.6 billion), through low-cost remittances (our remittance pricing averages 1.5% of send amount), is one of the biggest prides we can take.

We are most proud of the veritable choice that Rapidtransfer International presents to its target clientele. For the first time, the market sees a truly pan-African remittance option competing side by side with other major operators in Europe and the UK.

Why do you think you should win this category? In 2022, hundreds of academics and leaders of International Institutions from around the world came together for an African Development Bank Forum on ways to harness the skills, wealth, and dynamism of Africa’s 160 million strong diaspora to its growth and development. Participants in the forum agreed that more should be done to tap into and engage the diaspora community and leverage their strengths for Africa’s benefit and called upon the community members to make the development of Africa a priority for all Africans in the diaspora.

As a direct to this call, Ecobank had already taken the initiative to play an active role through its Rapidtransfer Innovation and its competitive advantages including low-cost money transfer. But the struggle to bring down remittance costs in Sub-Saharan African (the highest in the world, according to World Bank 2021 report) cannot be borne by Ecobank Rapidtransfer International alone. A win for us in this category would inspire other African Institutions to join the efforts to generate greater investment awareness in the community and propel higher remittance flow to the continent which will eventually promote financial inclusion for inclusive prosperity.

Since the launch of RapidTransfer International, we have been supported by our team of industry experts in sustainable realization of our vision for abiding relevance and enduring values towards the betterment of our common world.