The task of selecting top 10 technology driven products/services in financial service industry in Africa in 2009 is not an enviable one. In spite of the global financial recession, financial services industries in Africa have turned out several technology-driven innovative products/services. These products cut across all the financial sectors such as banking, insurance, capital markets and even pension schemes.
 Top on the list of the criteria employed by the financialtechnology editorial team include innovations and transformational power. The products/services selected have proven to be innovative both in design and implementation. They also have transformational power to revolutionise the financial service sector in the continent. Having applied these criteria as vigorous as possible, the following products/services were selected: M-Pesa, Zap, Mobile Money, Verve, Kenyan Bourse Complaints SMS Service, Instant Life, Capitec Bank Paperless System, Mbao Pension Scheme, Trustco Life and Uganda Financial Sector Identification (FSI) system.
  1.    M-Pesa
Safaricom’s powered M-Pesa, the most successful M-Payment system in the world, has continued to go from strength to strength. Having survived Kenya’s government inquisition in January 2009,  M-Pesa went international and opened a new platform for its 7.5 million subscribers to connect to the United Kingdom.
 Safaricom also integrated the platform to ATM systems. As such, its customers can retrieve money through PesaPoint ATMs. More than 75 organisations, including manufacturers of retail goods are already hooked up to M-Pesa, allowing their customers to pay using what was initially launched as a money transfer platform targeting the unbanked. The roll call of M-pesa corporate users include educational, financial, health, hospitality, utility, insurance, airlines, NGOs, and media institutions.
Renaissance Capital, a Nairobi based investment bank, estimates that M-pesa service earned Safaricom Sh2.9 billion in the last financial year. In terms of access for both merchants and consumers, the mobile platform offers significant low costs and unrivalled convenience.
 2.    Zap
With the launch of Zain’s Zap into the M-Payment sector in Kenya and East Africa, competition took a new twist characterised by revolutionary products. Zain introduced a new concept, allowing its users to send and receive money via their bank accounts.
Zain launched Zap Distro, a web portal tool that enables dealers and large chains, which have other agents under their flagships, to manage their accounts. It also unveiled Zap Master to its transactional menu. The Zap Master eases cash administration process especially for SMEs. With these new offerings, Zain has deepened the M-Payment scheme in Africa.
3.  Kenyan Bourse Complaints SMS Service
In 2009, investors at the Nairobi Stock Exchange (NSE) were able to lodge their complaints and queries on shares and transactions at their convenience. This follows the launch of the NSE Complaints Handling Unit (CHU) SMS service. This is an enhancement of the CHU website.
Peter Mwangi, NSE Chief Executive, says the new service will make the stock market more approachable for investors where they will get information on how the bourse operates or even raise issues they may have. Prior to CHU launch, investors shuttled between the NSE and market regulator, Capital Market Authority & Central Depository Settlement Corporation (CDSC) to raise concerns.
The new service is seen as an alternative to the web-based portal, bringing convenience to especially those in the rural areas without access to internet.
4. Instant Life
Instant Life is South Africa’s first direct insurer to function without the expense of an interactive call centre, using an automated administrative system.
The company claims to represent a sea of change in the way insurers do business. 100 years ago saw the emergence of the broker-driven insurance business; about 50 years later call centre technology changed the industry, while the online, low-cost system of Instant Life represents the kind of do-it-yourself change similar to that of buying airline tickets.
“The new generation of insurers will shift the focus from the old model of push-selling by a commissioned intermediary to life products that internet savvy and informed clients will want to buy,” says Jan Kotze, CEO of Instant Life. He says life cover could become more affordable including the 50% of South Africans who were underinsured by the life industry engaging directly with clients online and by shedding “its top-heavy layers”.
Instant Life started in August 2009, but was officially launched only in December 2009 because it needed time to refine its business models and technology. Nonetheless, according to Kotze, it had already received about 8000 applications from 40,000 hits.
5. Trustco Life
Trustco Mobile, a subsidiary of Namibia-based Trustco Group Holdings provides life cover for mobile phone users when they purchase airtime. It has set a target of signing up five million people on the continent in the next 10 months. Presently, the deal is exclusive to Cell One customers, in Namibia. 
Trustco Life covers users lives for a maximum of R100 000, for as long as they buy airtime monthly from the mobile company. Quinton van Rooyen, group MD of the Trustco Group, says the system works through the cellular company’s network and, as long as consumers keep buying airtime, they are insured. Reminders are sent out via SMS when customers need to recharge.
He says the concept was tested for a year before being launched, and uptake was good. Namibia has 1.4 million cellphone users, of which 95% are on prepaid packages. The company will expand the offering beyond Namibia and is targeting five million users by financial year-end. Cell One has 250 000 prepaid customers, Van Rooyen says.
6.  Mbao, Informal Pension Scheme
 An informal pension scheme powered by M-Payment services, M-Pesa and Zap was launched in Kenya in the last quarter of 2009. It will require savings of at least Sh20 a day for informal sector players to earn a pension after their retirement.
With the individual contribution pension scheme called Mbao Pension Scheme, the informal sector player will be able to save and enjoy comfort at old age, like those in formal employment. The pension scheme, established by Kenya National Jua Kali Co-operative Society Limited, is targeting 8.5 million people involved in small and medium enterprises in the country.
This pension scheme will leverage on technology to attend to the expected volumes of small denominations in contribution. In this, members will contribute through money transfer services like Safaricom’s M-pesa and Zain’s Zap, and receive account updates through their handsets.
The national identification card number will be the member’s account number. Retirement Benefits Authority MD, Edward Odundo, says the company expects the scheme to be the largest in the country in a few years.
7. Capitec Paperless Banking System
Opening a bank account at any of the over 370 branches of Capitec Bank in South Africa is a piece of cake. They take customer’s fingerprints with a scanner and the contract states that Capitec uses this ID to authorise transactions.  Within 45 minutes the customer is done. The account is opened and ready for transactions
Capitec Bank, the fastest growing retail bank in South Africa in 2009 pioneered a new biometric ID system to provide increased security for client transactions and lower banking fees. Riaan Stassen, Capitec Bank CEO says, “The sophisticated yet simple biometric device that we are implementing in our branches is an example of how we strive to use innovative technology to drive down costs while enhancing security and offering clients greater peace of mind. The biometric devices allow immediate verification and instant account access, in real-time, assuring clients that only they can transact on their account.”
The introduction of biometric ID by Capitec Bank is a local industry first. Using fingerprint and photographic recognition, the system is used in-branch when a client opens an account and any time they need to liaise with a consultant thereafter.
8. Financial Sector Identification (FSI)
To address the challenges of the absence of unique identifier in the implementation of its financial credit system, the Central Bank of Uganda (CBU) set up a Financial Sector Identification (FSI) system powered by Compuscan Limited.
CBU makes Compuscan the country sole credit bureau provider and makes it a regulatory requirement that all banks must supply loan applications and performance data; perform credit search at the point of facility review or new loan agreement. It also mandated all banks to issue financial cards to their borrowers to enable proper ID on credit bureau.
In 2009, all bank branches in Uganda have the software and hardware set up and enrollment also commenced.  The financial cards are created for individuals, companies and authorised agents representing companies. To forestall possible impersonation, 10-finger digits are registered and four images of each digit are taken. The solution was developed to work both online and offline with direct hook up to the finger print database.
9.    Verve
In 2009, Interswitch, Nigeria’s premier transactions switching and electronic payment company delivered the first locally branded EMV payment card in Africa. Christened Verve, the payment card generated a lot interest across the world because of its strategic impact on local e-payment transactions in Nigeria and its potential to become a leading regional payment card.
The security and EMV features in Verve chip & PIN card guarantees a higher level of security for payment transactions than magnetic stripe cards. Interswitch has also initiated eight other security initiatives. These are: MoneyGuard, which allows cardholders to send SMS from their phones to block their cards in case of an unusual, fraudulent activities; Fraud Watch, a portal and email for fraud reporting and information management; Fraud Guard, a fraud management and transaction security system; Fraud Insure, card fraud insurance; Fraud Team risk management team; Identity Guard, a token based strong authentication and Fraud Aware, cardholder awareness campaign.
10. Mobile Money
The MTN Group successful launched its Mobile Money Transfer (MMT) in Uganda and Ghana in 2009. It marked the beginning of a series of planned launches across its operations in Africa and Middle East.
MTN Mobile Money is a convenient, secure and affordable way for MTN subscribers to send money, buy airtime and pay bills using their cellphone. Whether users have an existing bank account or not, they can register for MTN MobileMoney as long as they are MTN subscribers. Those without MTN SIM cards or even a phone can still receive money from MTN MobileMoney users and send money through a network of agents in their country.
MTN has been piloting at the Group’s West and Central Africa (WECA) region operations (Cameroon, Ghana, Cote d’Ivoire and Nigeria) since October 2008. Five additional pilots were launched in Benin, Congo Brazzaville, Guinea Bissau, Guinea Conakry and Liberia in 2009. The pilots are aimed at waterproofing the systems and operational processes in preparation for the commercial launch. In each market, MTN has partnered with local banks to ensure that its MMT services are fully compliant with financial services regulations.
Discussions are currently on-going with relevant authorities in various countries to ensure that all regulatory requirements are met. MTN Mobile Money has the potential to become the largest banking services in Africa by the time the operations take off in all countries of its operations. MTN Mobile Money charges a smaller percentage compared to what other conventional service providers charge.