Addressing critical financial inclusion challenges
The seminar objective focused on exploring m-Banking challenges, presenting the HIO (Hub Inter-Operators) initiative, and showcasing a pilot project for bill payment via SMS, in partnership with SEAAL, Djezzy, BEA, and BNP Paribas El Djazair.
According to Professor Aïssa Brahimi from the University of Khemis Miliana, 3,700 billion DZD circulate outside the banking system compared to 2,324 billion DZD within financial institutions. This substantial volume of liquid assets outside the formal system creates significant tax losses while hindering investment. Dr. Samir Aït Akache, from the University of Bouira, stated that modern payment methods could help curb the parallel cash market.
Mobile banking adoption gap in Algeria
In Algeria, although all public and private commercial banks have made significant investments in e-Banking services, mobile banking adoption has lagged. Two years after 3G internet launch, very few banks offer mobile applications to their customers.
Beyond isolated initiatives, most banks have yet to embrace mobile solutions. This concerns mobile banking applications—enabling users to stay connected to their banks through smartphones and internet access—rather than mobile payments, which still await comprehensive legislation.
Introducing the HIO initiative
In his opening remarks, Abdelkader SALHI, Managing Director of Kepler Technologies, explained the m-Banking concept: technologies enabling banking operations (such as account consultation and fund transfers) via mobile phones.
He introduced the Hub Inter-Operators (HIO) 0.4 initiative, whose mission provides Algeria’s banked population with mobile banking services tailored to their needs, while supporting banks and financial institutions in diversifying and extending their digital offerings.
Pilot project demonstration
A pilot m-Banking experience was shared with attendees: bill payment via SMS for SEAAL customers holding accounts with BNP Paribas El Djazair, enabled through the Kepler Technologies HIO platform. This solution allows banks to offer clients the ability to initiate transfers to billers by sending secure SMS messages.
Ms. Lamia DJAMA, Project Manager at BNP Paribas El Djazair, explained that as part of the bank’s R&D strategy, they launched a pilot SMS transfer service, tested for over a month in collaboration with SEAAL. A live demonstration showcased the project steps to attendees.
Mr. Issam Hosny ROUZEIK, Client Manager at SEAAL, emphasized the company’s commitment to improving customer service, particularly by enabling water bill payments anytime, anywhere, securely via SMS.
Strategic vision for financial inclusion
A senior executive from a public bank, currently implementing the HIO solution, highlighted that m-Banking fits into a broader “remote banking” vision. The aim improves financial inclusion, especially in remote areas, streamlines transactions, lowers costs, and implements national directives to reduce liquidity outside the banking system. He noted that m-Banking relies on existing GSM infrastructure and leverages widespread mobile phone usage—with over 43 million subscriptions in 2015, according to the ARPT.
Unique market position and future Outlook
All speakers agreed that Kepler Technologies’ HIO offering is unique in Algeria. The ecosystem expands the existing service range for financial institutions, offering a turnkey m-Banking solution. This allows participating institutions to provide clients with account management through mobile phones, including both consultative and—crucially—transactional services, which are currently lacking.
The HIO ecosystem aligns fully with Algeria’s national financial policy, aiming to inject more liquidity into the formal banking system. This initiative expects to scale as large billers and financial institutions join the ecosystem—ultimately benefiting banked individuals with a simple, secure, and affordable m-Banking solution.
