How to leverage Africa’s economic potential for your bank’s clients

Africa’s economic potential

Africa’s potential as a high-growth market has been well-documented, with it holding 11 of the world’s fastest-growing economies. This, along with its growth projected to reach $2.1 trillion in 2025 makes Africa a largely untapped opportunity. 

Why is Africa an untapped opportunity?

While Africa’s potential is high, there are a number of logistics challenges stopping most companies in their tracks. 

Challenges for Africa accounts

1. Complex regulatory requirements

Africa comprises of over 50 countries, each with their own regulatory environment and financial system. Adhering to multiple sets of banking rules and reporting guidelines can be daunting, especially when you factor in licensing and compliance checks. Enterprises must also stay updated on evolving local regulations, which can vary significantly from one country to another.

2. Currency volatility and conversion hurdles

African markets feature a wide array of local currencies, each subject to its own exchange rates and volatility levels. Converting between currencies while managing multiple exchange rate fluctuations can significantly impact your bottom line. Traditional bank transfers may also be slow and come with unfavorable exchange rates or hidden fees.

3. High operational costs and limited local access

Without a local presence, global enterprises need to partner and build relationships with local banks, third-party vendors, or payment gateways. They also need to have a deep understanding of compliance regulations within each country which changes regularly. 

4. Inefficient payment reconciliation and reporting

Handling transactions across multiple African countries typically involves juggling bank statements, third-party settlement reports, and manual reconciliation processes. This lack of centralized visibility can lead to errors, delays in reporting, and difficulties in meeting corporate governance standards.

5. Fragmented infrastructure

Many African countries still rely on traditional banking systems, which may not always be fully digital or integrated with global transaction networks. Establishing a streamlined payment flow, particularly for cross-border transactions, can be a labour-intensive process that hampers enterprise agility and time to market.

For large enterprises— those with established processes and demanding governance requirements— navigating these nuances can be both time-consuming and expensive. This presents a unique opportunity for you to offer your clients a new service - African expansion - this time without the complications and challenges

Your solution to African expansion struggles

Enter Verto Atlas: specialised accounts that enable your clients to manage finances, transactions, and compliance for each market, subsidiary, or client segment from a single, centralised platform. Using Verto’s API, you can integrate these capabilities into your own offering.

Through your platform, your clients can create/open as many accounts they need in Nigeria and soon in Kenya, South Africa and Tanzania - all without a local entity. Using Verto’s advanced liquidity, favourable rates, local relationships and compliance with all local finance regulations, your clients now get the African advantage without the hassle. The best part? It is fully embedded in your interface. They don’t even know Verto is in the mix.

What Verto Atlas offers your customers

1. Local currency accounts without a local entity

One of the most compelling features of Verto Atlas is the ability to open local currency accounts without setting up a legal entity in-country. This structure significantly reduces overhead, legal fees, and time spent on administrative tasks like registering new branches or subsidiaries. By leveraging Verto Atlas, enterprises can instantly get up and running in key African markets.

2. Faster market entry

Launching operations in a new African market can take weeks or even months if you go through traditional channels. Verto Atlas allows your customers quick setup and near-instant access to local banking details. This speed is a significant competitive advantage, letting you capture market share earlier than competitors.

3. Scalability and flexibility

As your client’s business grows, so do their banking needs. Verto Atlas can be scaled effortlessly by adding new currencies, markets, or merchant segments without overhauling your finance infrastructure. Need to add a new local currency account for a recent acquisition or a new product line? Verto Atlas makes this a simple API call.

4. Better exchange rates and cheaper transactions

Your customers can take advantage of Vertos’ liquidity and competitive exchange rates to get the best deal for them. The best part? No hidden fees during exchange transactions. 

What Verto Atlas offers you

1. Access local infrastructure without hassle

One of the most compelling features of Verto Atlas is the ability to open local currency accounts without setting up a legal entity in-country. Your financial institution also does not need to build relationships with banks or keep up to date with local compliance procedures as Verto has the AML and KYC compliance and is present in those regions. 

2. Centralized dashboard and controls

Verto Atlas provides a single way of managing multiple countries, currencies, and compliance requirements. Instead of dealing with separate banking relationships for each market, financial teams can log into one centralized portal, view balances, reconcile statements, and initiate transfers. 

3. Automated FX and real-time conversion

With Verto Atlas, you can offer conversions of local currencies into USD or other major currencies in real time, tapping into favourable exchange rates that might are negotiated by Verto at scale. The automation and transparency in the conversion process helps you avoid hidden fees and the ability to hold money in local accounts and wallets reduces the risk of large currency fluctuations. Additionally, you have the flexibility to lock in exchange rates for a specific period, further mitigating volatility risk.

4. A competitive edge

By leveraging sub-accounts, you demonstrate to partners, clients, and regulators that your organization is committed to transparency, efficiency, and compliance. This can strengthen your reputation in new markets and, in many cases, pave the way for better negotiation power, preferential rates, or exclusive partnerships.

Ready to Expand into Africa with Confidence?

The opportunity only exists for those who seize it. Verto Atlas gives you the tools to make your client's African expansion plans a reality - giving you the unique chance to improve your offering. 

Visit our website or request a demo today to see how our sub-account solution can help you tap into Africa’s vast potential while keeping costs and complexity in check. Anew era of global growth awaits at your fingertips.