Better solution for payment systems risk
According to Namclear’s CEO, Fabian Tait, “The significance of the Namibia Clearing Settlement System is immense to the financial sector as it aids with the flawless processing, payment and clearing and settlement of transactions via tangible systems that automate the process which further enhances the efficiencies of the financial sector, in particular the banks.”
Namclear is the payment clearing house and authorized payment system operator of the National Payment System (NPS) in Namibia.
The formation of Namclear came against the background where Namibia, as an independent and sovereign state had to start managing and controlling its own domestic exposure and risks within the financial sector.
Thus the Bankers Association of Namibia (BAN), delegated by Bank of Namibia, initiated the National Payment Reform project, which lead to the establishment of Namclear (Pty) Ltd.
“Namclear operates as a Payment System Operator authorised by the Payment Association of Namibia (PAN) in terms of Section 3(6)(a) of the Payments Management Act (18 of 2003).
As its core services, Namclear provides local clearing of domestic inter-bank transactions such as electronic fund transfer (EFT), Cards transactions (ATM & POS) and cheque payments, including settlement, “ said Tait.
Some of the key features of the Namibia Clearing and Settlement System, according to Tait, include the enhancement and maintenance of the safety and efficiency of the National Payment System; Inter-interoperability and reduction of industry risk and complexity, as well as cost savings through economies of scale.
In addition, the Namibia Clearing and Settlement System also reduces costs, helps in consolidation of infrastructure, facilitates projects between industry participants, reduces complexity and risk, and is locally owned and operated.
Last year, Paul Hartmann, the Deputy Governor of the Bank of Namibia, stressed the importance of localising the core banking systems in Namibia as a move to lessen operational and legal risks that may arise in a jurisdiction that is not subject to Namibian banking regulations and supervision.
He also reiterated the importance of clearing and settling of domestic interbank transactions in Namibia in order to properly manage and control domestic exposures and risks, adding that the localisation of core banking systems would go a long way in minimising certain payment system risks.
“Namibia has an advanced National Payment System and we will continue to find new and innovative ways of facilitating payments and assisting the Namibian economy. We believe that Namibia can be a benchmark for other countries in terms of our National Payment System,” concluded Tait.