By Nicholas Waitathu
Commercial banks will be required to enhance the use of secure standards. The new requirement is aimed at ensuring customers services are properly protected from business malpractices.
Stephen Mwaura Nduati, the head of National Payment System at Central Bank of Kenya said financial institutions are supposed to ensure the services they offer to customers meet the outlined standards.
For example, in case a customer applies for a loan in bank, all steps such as ensuring time, security of the whole process, documentation and criteria for approving the credit ought to be observed.
“There are financial standards which banks are supposed to ensure they have observed,” he said. “They include standards on security systems and securities such as bonds offered at securities exchanges, payments standards and standards on core banking system.”
Leveraging on technology
Nduati was speaking at a sensitisation workshop on financial services dissemination standards at a Nairobi hotel organised by Kenya Bureau of Standards, (Kebs) on Thursday.
He said move would see customers in the country benefit out of enhanced and standardised services.
The Kenya Bankers Association Technical Services Director Fidelis Muia the advocating for standards is aimed at ensuring the market is performing under the standard operating procedures. He observed that for commercial banks to achieve the global standards they have to adopt the modern technology.
Nduati explained adhering to standards is crucial in the current times especially based on the changing dynamics in the global business. The local market has been prone to various malpractices such as malfunctioning ATMs as well as bank accounts tampering.
Kebs chief manager in charge of standards development Charles Gachahi pointed out that provision of financial standardised services is crucial, as it will enhance the profile of the country. “When investors are scouting for locations to spread their wealth, key considerations is whether applications globally agreed standards are applicable,” said Gachahi.
Gachahi added the advocacy seminar is to ensure financial institutions observe every detail of transaction service they extended to a customer.
“This is one of the many workshops we will organise to sensitise the public on the importance, process, benefits and opportunities of standardisation in financial sector,” he added.
