Key Highlights
- Avanti conducts successful satellite connectivity tests to fortify digital banking systems.
Avanti Communications has led a groundbreaking satellite connectivity test with BankservAfrica, Africa’s largest automated clearing house, and Capitec Bank, one of South Africa’s top retail banks.
The successful test marks a crucial step towards enhanced transactional security.It underscores satellite communications’ role in fostering digital banking, enhancing financial resilience, and advancing digital inclusivity in banking.
Key Findings from the Satellite Connectivity Test
- Stable Connectivity: The satellite connection demonstrated durability and stability, which is crucial for ensuring uninterrupted financial transactions on Avanti’s Geostationary Earth Orbit (GEO) Ka-band High Throughput Satellites (HTS).
- Mission Critical Application: Avanti exclusively routed financial traffic through its satellite link, demonstrating its capability to manage mission-critical applications during terrestrial link failures or unstable connectivity caused by fibre cuts or power issues.
- Effective Production Testing: The satellite link showcased its robustness by efficiently managing high transaction volumes during intensive production testing.
“Amid challenges like power grid instabilities and undersea cable malfunctions, this test enhances operational resilience by enabling direct satellite connections to European traffic hubs. Avanti’s solution reduces reliance on vulnerable local infrastructure, ensuring secure and uninterrupted financial operations,” stated Gamze Aydin, Senior Vice President of Sales and South Africa Country Manager at Avanti.
Ben Janse van Rensburg, Chief Technology Officer at BankservAfrica, states that they participated in the connectivity test to assess the viability of using satellite technology for additional resilience in the financial industry.
The test successfully met all critical measurement points and the bank is pleased to consider integrating this technology into their Managed Network Solution.
This initiative marks a major step towards reinforcing the resilience of financial services across Africa. Completing the test demonstrates the viability of satellite communication in maintaining stable and reliable transaction environments.
The World Bank reports that 49% of adults own an account in Africa, more than double the rate since 2011. On closer investigation, the distribution varies. In 2014, 69% of South Africans owned a bank account, a relatively high regional rate. Mobile money adoption was at 14%, with nearly all mobile money users having bank accounts.
By 2021, bank account ownership rose to 84%, and mobile money accounts increased to 37%. Moreover, digital payment usage rates among account owners are impressively high, ranging from 95% to 98%.
Regardless, for over 15 years, load-shedding, which is the deliberate shutdown of electric power in part or parts of a power distribution system, has plagued the South African power sector. The banking sector depends on power, and although many organisations rely on backup batteries and generators, they still need help with rising diesel and petrol prices.
Furthermore, the banking sector relies on Information and communication technology to conduct transactions. March’s subsea cable failures off the coast of Abidjan, Côte d’Ivoire, significantly disrupted Africa’s Internet services. Several Internet service providers (ISPs) confirmed disruptions to major international submarine cables, including the West Africa Cable System (WACS), South Atlantic-3 (SAT-3), MainOne, and Africa Coast to Europe (ACE) systems.
The Southern country commits to advancing and enhancing satellite communication to guarantee seamless connectivity and ensure stable, reliable financial operations, which are crucial for economic stability.
By adopting satellite communication, financial institutions can better manage risks associated with infrastructure disruptions, thus contributing to a more stable economic environment.
Avanti’s breakthrough test establishes a secure channel for financial transactions, safeguarding sensitive data from cyber threats and ensuring safe and secure transaction processing.
Widespread adoption will also reduce reliance on local infrastructure, often prone to issues.This minimises the risk of operational interruptions due to local infrastructure problems and supports expanding digital banking services, especially to remote and underserved areas.
Source: https://spaceinafrica.com/2024/07/17/avanti-conducts-successful-satellite-connectivity-test-to-enhance-financial-security-and-resilience-in-africa/
