Insights on Simo
- Oversees the central system transaction processing for national cards as well as internationally accepted brands like Visa, Mastercard, and AMEX
- Directs the issuance and management of cards for its member banks
- Serves as the clearing and settlement of all operations across the network for participants, including banks and merchants
Triggers for transformation
Almost all financial institutions in Mozambique rely on SIMO, and an interruption of services would seriously affect the national financial infrastructure. There were 22 Banks, 3 MNOs, 1200 ATMs and 15,000 POS machines dependent on the organization. Given SIMO’s pivotal role as a provider of financial services, this continental agreement carried immense implications. It not only represented an opportunity but also a necessity for SIMO to adapt and evolve. The prospect of being an enabler for a monumental surge in cross-border transactions and financial activities in Mozambique became a compelling driver for transformation.
Furthermore, the rapid growth in electronic transaction volumes and the introduction of new financial products and channels placed Simo at a crossroads. Legacy technology that had sufficed in the past was now inhibiting the realization of ambitious business goals, both for SIMO itself and its member banks. The need to keep pace with digital advancements in the financial industry, ensure uninterrupted services, and meet the evolving expectations of Mozambique’s population became increasingly evident. Thus, the confluence of regional economic shifts and technological advancements emerged as key triggers compelling SIMO to embark on its transformation journey.
Needs and Challenges:
SIMO faced a multitude of needs and challenges that underscored the urgency of its transformation. The organization’s role as a key player in Mozambique’s financial infrastructure meant that any interruption of services could have severe consequences for the entire national financial ecosystem. This highlighted the critical need for a modernized, enterprise-level solution that could not only maintain but also enhance the financial system’s resilience.
Also, the legacy technology stack not only hindered innovation but also strained financial resources. Simo required a solution capable of reducing operational costs while offering scalability to support the nation’s burgeoning digital financial landscape.
Furthermore, SIMO sought a transformation that could simultaneously address its immediate needs for a digitally-focused future. The transformation was not merely about sustaining existing use cases; it aimed to introduce cutting-edge digital financial services that would benefit Mozambique’s population. This dual imperative — maintaining continuity while driving innovation — posed a complex challenge that Simo had to navigate effectively to secure its pivotal role in the country’s financial evolution.
Why Ren?
In addition to rising operational expenses, SIMO required a comprehensive, country-wide financial system solution. It was essential to retain its existing tools and connections from the previous technology partner to meet both immediate and evolving demands effectively. SIMO aimed for a solution capable of supporting present-day requirements while also ushering in a digitally-oriented future for the nation’s populace. Following an extensive competitive procurement process, SIMO opted for Euronet and the Ren payments platform technologies to provide this solution.
How did we help?
SIMO faced the crucial requirement of retaining its existing portal, and Euronet effectively addressed this need by integrating with the current tools without necessitating a complete replacement. The migration process to Ren involved significant complexities, encompassing aspects such as ATM and POS management, digital wallet solutions, multiple interfaces to member banks and international networks, and redundancy measures. During this transformation, SIMO seized the opportunity to enhance its product offerings and operational environment, fortify its disaster recovery capabilities, and augment ATM monitoring and fraud prevention modules.
Euronet also upgraded SIMO’s network to support EMV processing, unlocking additional value-added services for cardholders, including the issuance of domestic Visa and MasterCard debit and credit cards and the facilitation of ‘off-us’ foreign currency card transactions through leading banks.
As this project was executed during the pandemic, the Ren teams remotely replaced the legacy solution while introducing expanded functionality in the form of digital wallets, bill payments, mobile top-ups at ATMs, and EMV support. SIMO had recently invested in a new banking portal for its 20+ participant banks, and Ren’s adaptable approach to existing infrastructure and vendor relationships ensured the continued use of this portal, seamlessly integrating it into the Ren platform. Beyond the banking portal, SIMO also sought to maintain existing mobile applications, telecom provider relationships, and biller connections, and Ren’s API Gateway played a pivotal role in extending and streamlining these vital relationships into a single gateway, enhancing SIMO’s operational efficiency.
Customer Quote
The global impact of COVID-19 caused us concern about Euronet’s ability to keep on schedule. But Euronet continued to work with us to meet all go-live dates. Their technology, knowledge, and experience were key factors in hiring Euronet, but their commitment to meet scheduled milestones convinced us they were the right choice all along. We’re confident that these solutions will keep our member banks at the vanguard of modernized payment solutions and are pleased to have Euronet as a partner in this process.”- Luisa Navele, Director of Legal Affairs Office of Banco de Moçambique
