Avanti Successful Satellite Connectivity Test to Enhance Financial Security and Resilience in Africa

Key Highlights

• Avanti conducts successful satellite connectivity tests to fortify digital banking systems.

Avanti Communications has led a successful 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.

“This test enhances resilience amid power grid instabilities and undersea cable malfunctions by enabling direct satellite connections to European hubs. Hence, Avanti’s solution reduces reliance on vulnerable local infrastructure, ensuring secure, 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 they tested satellite technology for enhancing financial industry resilience. The test met all critical points, and the bank is considering integrating this technology into their Managed Network Solution.

Expanding Digital Banking Services: Satellite Communication to Reach Remote and Underserved African Areas

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.

Furthermore, 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%. 

For over 15 years, load-shedding has plagued the South African power sector. This deliberate shutdown of electric power in parts of the distribution system affects many industries. The banking sector, heavily dependent on power, struggles despite relying on backup batteries and generators.

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 satellite communication to ensure seamless connectivity and reliable financial operations, vital for economic stability. This adoption will help financial institutions manage infrastructure disruptions, fostering a more stable economy.

Avanti’s satellite connectivity ensures secure financial transactions and protects sensitive data from cyber threats. As more institutions adopt this technology, they will rely less on vulnerable local infrastructure. This shift will reduce operational interruptions and expand digital banking services to remote and underserved areas.